How do I handle wage garnishments or court-ordered deductions? 

Wage garnishments or court-ordered deductions are mandatory withholdings from an employee’s paycheck, such as child support, alimony, tax levies, or creditor judgments. As an employer, you must process these correctly to stay compliant. 

Steps to Add Garnishments or Court-Ordered Deductions 

1. In the Salary Information section, scroll to the Deductions area and Click Add Deduction . 

2. Click Deduction, select Custom Deduction from the dropdown. 

3. Enter the following details: 

1. Enter your own description (e.g., Child Support, Tax Levy, Wage Garnishment). 
2. Enter the Amount to be deducted for this pay period. 
3. YTD Amount – this is calculated automatically but can be edited manually if adjustments are required. 
4. Save the entry. The deduction will display in the Deductions section of the pay stub automatically. 

Important Notes 

• Garnishments should always be labeled clearly (e.g., “Child Support” or “Tax Levy”). 
• Federal law limits how much can be withheld, and some states have stricter rules. Check the order carefully before entering the amount. 
• If you receive multiple garnishments, follow the priority rules outlined in the order. 

Compliance Reminder 

Employers are legally required to withhold and forward garnishment amounts on time. Failure to do so may result in penalties..