How does Payroll decide which Garnishment Rule to Use for each Garnishment?

Before Payroll calculates a garnishment, it must find the garnishment rule to use in the calculation. Garnishment rules determine the logic and variables Payroll uses during garnishment calculation.

U.S.

For U.S. garnishments, Payroll first looks for a U.S. garnishment rule with the governing tax authority, category, and type of garnishment that matches the employee garnishment it needs to calculate.

If Payroll does not find a rule, it looks for a rule for the governing tax authority and category.

If no rule is found, Payroll uses the federal rules for the following categories:

G Garnishment
S Support
L Loan
T and Type = 4 IRS Tax Levy
U.S.garnishment rule defaulting logic

There are no federal rules that govern categories

  • A - Assignment

  • B - Bankruptcy

  • T with Type not equal to 4 - State tax levies

You must define rules for these types of garnishments.

If a garnishment category includes both Federal and State rules, Payroll looks at the state rule first, compares it to the Federal, and uses the rule that is most advantageous to the employee.

Canada

For Canada garnishments, Payroll finds the garnishment rules with the governing tax authority and type that matches the employee garnishment it needs to calculate. Payroll uses this Canada garnishment rule to calculate the garnishment.