split payroll garnishment deductions

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Posted on by Buffy Riegler

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I need to setup 3 payroll deductions that collectively cannot exceed 50% of net wages for an employee. The deduction amount needs to be reduced evenly if the net wages are not sufficient. All 3 have the same Maximum Deduction for the deductions on the employee deduction screen. I have made the 3 deductions the same sequence number for that employee. The full amount for each deduction is being withheld taking the total deduction above the maximum. I would appreciate any help to make this work. Thanks in advance

The following is the help documentation.

In the Employee Deduction Sequence window, assign the garnishments the same sequence number. In the Garnishment Maximum Setup window, define a maximum code that applies to the total of all the garnishments that have the same sequence number, and leave the Include Previously Sequenced Garnishment Deductions option unmarked. If the total of all the garnishments that have the same sequence number exceeds the maximum, the garnishments will be reduced by an even or proportional value specified in the Split Method window.

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Jim Wilson on at

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Am having the same exact issue.

Buffy, did you get this to work yet? And if so, how?

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Buffy Riegler 175 on at

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Jim, I opened an incident with Microsoft. They provided a work around because the sequencing doesn't work or at least not for this. If you provide your email address I will email the work around.

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K. Howard Joslin 15 on at

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Hello, I have the same issue. Tested extensively and could seem to get it to work.

What did you find out?

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L Vail 65,271 on at

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Hi,

If I'm understanding correctly, the sticking point is probably the 'deduction amount needs to be reduced evenly'. The Pro-rata reduction works flawlessly. Here's my example:

Our friend Pilar Ackerman has three fixed garnishments as follows

$1,000

$1,500

$2,000

Each of the garnishments is limited to 50% of earnings. Earnings is defined as gross wages minus taxes and insurance (remember, I'm making this up as I go along).

For Pilar the calculation works out thusly:

$432.69 - Salary

$-47.89 - taxes on wages

$-72.95 - insurance deduction

$311.85 - Net earnings

$155.93 - 50% of Net earnings available to satisfy garnishments.

Reducing each garnishment proportionaly would result in the following allocation:

Garn 1 $34.65

Garn 2 $51.98

Garn 3 $69.30

You do not want it split that way. What you want is to divide the available $155.93 by 3 and allocate it out that way. Each of the garnishments would get $51.98.

To accomplish this split, you would ordinarily need to choose the Even split option on the sequence window. However, when you select this option, the result is incorrect (way incorrect!).

What I've been doing is a crude work around. I let the system calculate the total amount that is available, the $155.93 in my example, and then manually do the split. I have a set of deductions I use to pop in the correct amount, and then I rebuild the checks using the new deduction codes and call it a day.

If Microsoft has provided a nice workaround, it would be great if you would share it on the forum so that others can benefit from your answer. This is a widespread problem and you could help many people by sharing your workaround with the GP community.

Kind regards,

Leslie

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Community Member on at

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Hi Leslie - Do you know if there has been a resolution to the multiple garnishment issue that results in deductions that exceed the maximum. We are having the same problem here. Thanks!

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Buffy Riegler 175 on at

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We couldn't get the deductions to reduce proportionally. We opened a case with Microsoft and they suggested we create Max Deduction Codes for each employee/deduction combination that has the 50% restriction. The Max Withholding Percent was calculated by dividing the individual deduction by the total of all restricted deductions and dividing that by 2. They sent a worksheet to help with that. If an employee has

Deduction 1 = $100

Deduction 2 = $70

Deduction 3 = $30

TOTAL = $200

The max deductions would be:

Deduction 1 = 100/200/2 = 25%

Deduction 2 = 70/200/2 = 17.5%

Deduction 3 = 30/200/2 = 7.5%

Unfortunately my client adds about 200 deductions a week so that would have taken quite a bit of time. I added a stored procedure to do the calculation and create the garnishment max deduction. The stored procedure is called from the employee deduction maintenance screen when the deduction is saved. They have been using it for several years. We will be testing the functionality in GP2018. Hopefully the mod will no longer be needed. Hopefully that helps!

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L Vail 65,271 on at

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In GP 2016 it still does not work correctly. I'll load up GP 2018 and see if it's any better.

Kind regards,

Leslie

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Community Member on at

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I have been trying this using Dynamics GP 2016 and have also had no luck. Terry Healy (Microsoft Payroll Expert) had suggested calculating the actual percentages of each deduction (instead of just 55% of net earnings, do the calculation of my deduction against the 55%) but that didn't work either. Plus, each person could have a different deduction and the customer would have many maximum IDs. Has anyone re-tested this in GP2018? I am happy to do it, but I don't have a lot of faith that it is going to work.

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Mike Zerr

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Set them up as standard deductions with a method of percent of net wages

For example, let’s take the following deductions amounts , now lets say this cannot exceed 50 percent of net wages

deductions	amnt	pro rated	50% of pro rated
GAR1	400	0.444444	0.222222
GAR2	300	0.333333	0.166667
GAR3	200	0.222222	0.111111
total	900	1	0.5

Now we still setup the following deductions to be “Percent of net wages” at the 50% of pro rated amount net amount, then we put in a pay period max as the full amount of the garnishment

Scenario 1
net wages is enough lets say $2000, now the pay period max will take over and just pay the fixed amount we put in the per payperiod max and the employee will pay the full deduction amounts

deductions	max amnt	Deduction % of NDI	net wages	deduct calc	deduction taken
GAR1	400	0.222222	$2,000	$444.44	$400.00
GAR2	300	0.166667	$2,000	$333.33	$300.00
GAR3	200	0.111111	$2,000	$222.22	$200.00

Scenario 2
NDI wages is not enough lets say $1,200, now the deduction max will not take effect and notice it will take $600 in total what is 50% of the NDI

deductions	max amnt	DEDUCTION % of NDI	net wages	deduct calc	deduction taken
GAR1	400	0.222222	$1,200	$266.67	$266.67
GAR2	300	0.166667	$1,200	$200.00	$200.00
GAR3	200	0.111111	$1,200	$133.33	$133.33

I know this is an old post and I was setting it up today but posting in case anyone else is searching for the answer

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