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March 5, 2024
Question

How to set the garnishment to take into consideration the federal minimum wage in calculation.

  • March 5, 2024
  • 1 reply
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1 reply

March 6, 2024

We'll have to select whether the garnishment is calculated as a flat amount or percentage of the disposable income so we can follow the minimum wage order, kcarlson2. We'll guide you in completing the process below.

 

If you receive a court-ordered wage garnishment order or tax levy for an active employee, you're legally bound to withhold their wages. It should have specific guidelines that determine the amount you withhold and the way you handle multiple garnishments.

 

Once you've determined what type of garnishment you have, add it to QuickBooks by following these steps:

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select + Add Garnishment.
  5. Choose the Garnishment Type.
  6. Enter a description.
  7. Enter the necessary fields based on the garnishment type you chose.
  8. Select Save and then Done.

 

After that, pay the garnishment to the appropriate agency. For the complete guide, please see this article: Set up and collect garnishments.

 

Additionally, QuickBooks offers various payroll reports that include valuable insights into your business and employees. For a comprehensive list and instructions on customization, please see this article: Run payroll reports.

 

Stay in touch if you need further assistance setting up garnishments or have additional questions about managing payroll transactions in QBO. We'll get back to help you the best that we can. Have a good one.