How do I add a Garnishment account to the withholding for an employee?
We are supposed to withhold payments from the employee's check and retain it until we receive the court order to send the payment. How do i do this? Thanks for the help!
We are supposed to withhold payments from the employee's check and retain it until we receive the court order to send the payment. How do i do this? Thanks for the help!
I'll make sure you can add a garnishment account in QuickBooks Desktop (QBDT), @lilavalv. This way, you can withhold payments from your employees' paychecks accordingly.
A wage garnishment is a court order for you to withhold a certain amount of an employee's wages as repayment for debt. You're able to add a garnishment account when you create a payroll item. Here's how:
Once you're done, set up the garnishment deduction item on each employee's record. For the detailed steps, you can check out this article: Set up a payroll garnishment item.
On the other hand, if you want to create a separate garnishment account, you can add one from your chart of accounts. For the step-by-step guide, you can refer to this article: Add accounts in QuickBooks Desktop.
Additionally, when you receive the court order to send the payment, I'd recommend pulling up the Payroll Liabilities Balance report. This way, you're able to have all the information you need about the payroll items assigned to a liability account, deductions, and company contributions.
To do this, I'd recommend checking out this article: Run payroll liability balances report. It also includes details about the payroll liabilities account.
Let me know in the comments if you have other payroll concerns and questions about the garnishment account in QBDT. I'm always here to help. Take care always, @lilavalv.
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