Set up a payroll garnishment item

Hi 11753k.

Setting up your payroll to include garnishments is a key part to running payroll. I'd can definitely help you get garnishments added in QuickBooks Desktop.

QuickBooks Desktop makes creating new payroll items a quick process to help you save time and effort. In order to create a garnishment payroll item you'll first need to go to Lists>Payroll Item> List>Select Payroll Item at the bottom and select New. Once that is done a New Payroll Item pop up will show for you. You'll first need to select deductions and then name the payroll item for example name it garnishment. I recommend reaching out to an accountant to make sure that you're selecting the correct information on the next few options. If you don't have an accountant you can find one in your area here. From there you'll need to select the agency that the garnishment is being paid to and which liability account it'll go to. Next you'll select which box it'll be assigned to in the T4's and if it's taxable or not. The next question would be if the amount is calculated by quantity. If its not then select neither and then select if its calculated based on net or gross pay. The last step is how much will be taken out, if it's a percentage or a specific amount and finally what's the total amount it can take off before no more can be removed.

Once you fill out all those questions you can then add it to your employees payroll by selecting the garnishment payroll item under deductions when creating a new paycheque.

If you have any questions let us know and we'd be happy to help.