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amanda-connectro
November 13, 2024
Question

payroll deductions / limits

  • November 13, 2024
  • 1 reply
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I am in Texas and have two employees with child support deductions.  Texas requires that no more than 50% of disposable income can be withheld for child support.  The options on payroll item limit resets are for annual, monthly, or one-time.  Does the one-time limit mean literally just one time, or is that Quickbooks' weird way of meaning it resets each pay period?  In other words, if I entered a child support payroll item with a 50% limit figured on net pay (not the same as disposable, but as close as I can get) and set it to the one-time reset, would it reset each week when I run payroll, or would it figure that limit one single time and never again?

    1 reply

    FishingForAnswers
    FishingForAnswers
    November 13, 2024

    @amanda-connectro  The descriptions are literal; one time is one time, monthly is each month, and yearly is each year.

     

    Unfortunately, I don't think there is a perfect approach here for every situation. If they're on a fixed pay each week, you could figure out 50% of that pretty easily, but I expect you probably have hourly workers to deal with here.

     

    If they always make too little to pay the entire amount, you could get away with setting the child support itself for 50% within the specific employee's information, but that's risky at best.

     

    I've always had to just keep an eye on it when I run into the child support employees and manually calculate it when the deduction outweighs the net pay.

     

    If a QB wizard sees this and knows an easier way, I'd love to hear it too.

    A
    amanda-connectroAuthor
    November 15, 2024

    Thank you, I appreciate your response!  This is the first time I've had to worry about the child support limit -- most of our hourly work well over 40 hours per week -- but this week one was out for three days.  I'm always overly careful when processing payroll, and we only have a handful of employees so I have the luxury of taking my time with payroll, but it would be nice if there was one less thing to have to worry about.

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