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November 14, 2022
Question

How to add a wage garnishment to be calculated on NET pay.

  • November 14, 2022
  • 1 reply
  • 0 views
I'm trying to add a wage garnishment deduction but the only option is to calculate percent on gross pay. I need it to be net pay. How do you do this?

1 reply

November 14, 2022

Hi sherryhagemeier,

 

Thanks for reaching out here.  QuickBooks Online provides options when adding a garnishment to an employee.  I'd be happy to assist!

 

Although you can add a deduction as a percentage, this will be applied to the gross amount.  However, you'll also have the option to apply it as a flat rate.  Here's how;

 

1. Open Payroll and then Employees from the left menu

2. Select the employee

3. Click Edit in the Employment details section

4. Use the ▼ dropdown menu to select the Garnishment item from the list or + Add new

5. In the Calculated as field, select Flat rate, enter the Amount per pay cheque and the Annual maximum

Note;  The totals will need to be manually calculated based on the percentage to be applied

6.  Hit Save when complete.

 

If you'd like to see other options available, please don't hesitate to provide a suggestion to our Development Team.  Recommendations are greatly appreciated to improve your overall customer experience with QuickBooks Online.

 

If you have other questions, feel free to reach back out.  We'd love to help!

 

May 25, 2023

When searching how to garnish wages, I automatically get a response, but from the US site: https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll/set-payroll-garnishment-item/L2WY8qWHl_US_en_US?uid=li3d005x

 

Why is this not a feature in Canada too? 

May 25, 2023

Hi there,

 

It's not, unfortunately. When I follow the instructions on that page, it says to add a 'garnishment' (which is a deduction from disposable income) as a deduction. This option is not available in Canada apparently.