An employee garnishment can be set up a number of ways depending on your state requirements. Some garnishments are simply percentages of adjusted gross. They can also be set up as a set percentage of the remaining net of the paycheck after taxes. Check with your accountant on the proper method of calculating a garnishment in your area.
There are three steps to this procedure:
- Set up the garnishment formula.
- Set up the garnishment employee payroll field.
- Apply the garnishment formula to the garnishment employee payroll field.
Note: You must subscribe to a plan that includes payroll to set up or use payroll formulas within Sage 50. Without a plan, you can still set up the garnishment employee payroll field, but you have to manually enter the garnishment amount on the paycheck.