Creating garnishment rules

  1. Select Payroll Administrator > Setup > Garnishment Structure.
    or

    Select Administrator > Set Up > Payroll > Garnishment Structure.

  2. Click the Garnishment Rules tab.
  3. Click Create.
  4. Specify this information:
    Country
    Specify a country.
    Tax Authority
    Specify a tax authority.
    Type
    Optionally, specify a type. If you specify a type, the corresponding category is specified automatically.
    Category
    If you did not specify a type, specify a category.
    Electronic Filing
    Select this check box to tag the garnishment for electronic filing. This tags the garnishment with an invoice source of "H" when posting payroll to Infor Financials and Supply Management.

    HR Payroll determines which garnishment rule is used to retrieve the Electronic Filing field in this order:

    1. State tax authority garnishment rules and garnishment types
    2. State tax authority garnishment rules without a garnishment type
    3. Federal garnishment rules
    Note: This check box is only available if you selected Support in the Category field.
    Multiple Garnishment Rule
    Specify a multiple garnishment rule. This rule governs how the amounts are calculated and distributed when there is more than one active garnishment with the same category or type for an employee.
  5. On the Wage Formula tab, specify these values to define the formula used to determine wages that are exempt from garnishment:
    Formula Number
    The formula that is used when calculating exempt wages.
    Rate Times Minimum Wage
    If the formula uses a rate, specify the rate that, when multiplied by the federal minimum wage, determines exempt wages.
    Factor (1-4)
    If the formula uses factors, specify a wage formula factor to be used to calculate exempt wages.
    Second Family Percent
    If the formula considers second families, specify the percentage to be used to calculate exempt wages if an employee has a second family.
    No Second Family Percent
    If the formula considers second families, specify the percentage to be used to calculate exempt wages if an employee does not have a second family.
    Arrears Over 12 Weeks Percent
    If the garnishment is for child support or spousal support, specify the additional percentage to be used to calculate exempt wages if arrears are over 12 weeks old. This percentage is used if Yes is selected in the Over 12 Weeks field of Employee Garnishment.
    Per Dependent
    If the formula considers dependents, specify the amount or percentage per dependent to be used to calculate exempt wages.
  6. On the Fee Information form, specify these values to define any fees that are associated with the garnishment that are withheld from the employee:
    Deduction
    Specify a deduction code to be used to track fee amounts that are withheld separately from the garnishment amount. Only deduction codes with a type of Garnishment can be used.
    Amount
    Specify the amount to be deducted from the employee's earnings for this garnishment fee. If this field and the Amount field in Employee Garnishment are both blank, then the withheld amount is determined by the limit option, limit 1, and limit 2.
    Deduct From Garnishment If No Available Wages
    Select this check box for HR Payroll to reduce the garnishment amount by the Administrative Fee Deduction amount when the fee deduction would bring the employee's net pay below the legally protected amount of available wages.
    Note: This field applies only to the fee deduction and not to the clearinghouse fee deduction.
    Frequency
    Select the value that indicates how often the fee must be withheld. The fee can be withheld when the garnishment amount is withheld or every payroll cycle in which the garnishment amount should be withheld, regardless of whether there are sufficient funds to cover the garnishment order plus fees.
    Limit Type
    Select the value that indicates which limit option to use in determining the fee amount. Use this field in combination with the Limit 1 field and, if applicable, the Limit 2 field.
    Limit 1
    Specify a limit amount or percentage to use in fee calculation, based on the value in the Limit Option field.
    Limit 2
    If the limit option rule has two calculations, specify a second limit amount or percentage to use in fee calculation.
    Clearinghouse Fee Amount
    To calculate a clearinghouse fee, specify a value. Clearinghouse fee deductions are only taken from the income available to garnish, always preserving the employee's protected income. Partial clearinghouse fee deductions can be taken based on the arrears flag on the deduction. They do not go into arrears, no matter what the arrears flag is set to on the deduction. Clearinghouse fee deductions are not displayed as a separate deduction on Calculate Payments, Payments, or Gross Up Calculation. The amount that is deducted is always included in the deduction amount that is shown on these reports. Clearinghouse fee deductions are displayed separately on the garnishment reports that are produced by these programs. Clearinghouse fee deductions are not displayed as an employee deduction, because the clearinghouse fee deduction is tied to the garnishment deduction.
  7. Click Save.