Payroll Garnishments with Dynamics GP and with Greenshades Garnishments Module
I recently watched a webinar by Greenshades covering the Greenshades Garnishment Module.
For all our Dynamics GP clients using the Payroll Module, I decided to share some information regarding how Greenshades Garnishment Module can help you and when you should consider using this as an add-on to Dynamics GP Payroll.
Dynamics GP Payroll Garnishments might be all you will need to handle your Garnishments.
Let’s review some of the basic setup by reviewing information from the Help Text.
Setting up a garnishment
Use the Deduction Setup window to enter and maintain garnishments. Garnishments are mandatory deductions from employee pay, such as debt payments enforced by court order.
Specify which portion of an employee’s wages are subject to garnishments.
Federal and state governments also set maximum percentages for garnishments.
To set up a garnishment:
Open the Deduction Setup window. (HR & Payroll >> Setup >> Payroll >> Deduction)
After Entering a Deduction Code and Descriptions, select Garnishment as the deduction type.
Then choose from the following options for Garnishment Category:
Support Order for support of a child or other dependent
Tax Levy for overdue taxes
Bankruptcy for bankruptcy debts
Garnishment for student loan or creditor debts
Other for garnishments without a designation category
Next select a garnishment deduction method.
Percent of Gross Wages: Select this method to calculate the deduction as a percentage of total wages before taxes are deducted.
Percent of Net Wages: Select this method to calculate the deduction as a percentage of gross wages minus taxes.
Fixed Amount: Select this method if a fixed amount should be calculated from the employees’ wages.
Amount Per Unit: Select this method if the deduction should be based on hours or units using piecework, hourly or overtime pay.
Percent of Earnings Wages: Select this method to calculate the deduction as a percentage of net disposable income. You can define which portions of an employee’s income are subject to a deduction by defining earnings codes in the Earnings Setup window.
To deduct a company fee from employee wages for processing garnishments, create a deduction code and include it in the earnings code.
Select the deduction frequency.
If you need to print the year-end total amount for this garnishment on the W-2 statement, enter the number of the appropriate W-2 statement box, and enter appropriate label information. See IRS rules for the applicable year for a current list of labels.
For multiple Garnishment deductions, you can choose Sequence to specify the order in which deductions will be taken from the employee’s wages.
Use the Garnishment Maximum Setup window to define garnishment limits according to state and federal rules. You can set up garnishment limit formulas for different garnishment types, and if necessary, for different garnishment frequencies.
Setting up maximum garnishment rules
Federal and state law each establish maximum rates and amounts for garnishments. Payroll calculates garnishment amounts using both state and federal maximum amount rules, compares them to the target garnishment amount, and selects the lesser of the three amounts as the garnishment.
Deducting multiple garnishments
If multiple garnishments are levied against an employee, you’ll first need to set up codes defining the maximum rates and amounts that can be withheld, in accordance with applicable state and federal regulations. Then you’ll need to decide how to apply the maximums when calculating an employee’s pay. Payroll provides several ways to apply maximums:
To each garnishment individually
To multiple garnishments, in a priority sequence
To multiple garnishments, without priority
Be aware that when there are separate state and federal maximums, Payroll will always apply the maximum that deducts the smallest amount from an employee’s pay.
Dynamics GP also lets you set up Payments to Payables Vendors for the Garnishments using Payroll Vendor Setup.
Payroll >> Setup >> Payables Integration >> Vendors
Select one of the following transaction types:
- Federal Tax
- State Tax
- Local Tax
- Company Deduction
- Employee Deduction
- Company Benefit
- Employee Benefit
Based on the selection, the fields and options reflect that selection. For example, when transaction type of Employee Deduction is selected, you will specify the employee and the Deduction code field lookup contains a list of Employee Deduction Codes assigned to that Employee.
You can then choose the Payables Vendor, Vendor Address, GL account and Voucher Description.
So how do you know you need something more that Dynamics GP Payroll Garnishments and when can Greenshades software help? Here is a list of items from the webinar that might help you decide if Greenshades is a better, more complete option for your payroll garnishment needs.
- Frequent manual calculations and edits
- Multiple orders per employee
- Complex or unusual withholder orders (For example student loans)
- High volume
- Industries such as healthcare, trucking, hospitality, staffing (high turnover)
- Child Support ACH requirements
From the Greenshades webinar – 10 Ways Greenshades Garnishments can simplify GP Payroll
- Wizard Based Setup Automation – Create, edit, and enable Garnishments for employees based on deductions within Dynamics GP
- Compliance Updates
- Administrative Fee Management
- Easily Handle Multiple Orders
- Track Arrears for Insufficient Funds
- Real Time Calculation & Auto Correction
- Simplify Payment Process With A/P Batch Creation
- Child Support ACH
- Explanation and Termination Reports
- Extensive Reporting
If you are an iSolutions – Dynamics GP client: Contact us if you have questions about how to set up and track Garnishments in Dynamics GP.
If you are interested in finding out more about the Greenshades Garnishment module.
Below is a link to sign up for the upcoming webinars:
Upcoming Webinar dates and times:
If you are an iSolutions – Dynamics GP client: Contact us if you have questions about how to set up and track Garnishments in Dynamics GP or have additional questions regarding Greenshades Garnishments module:
Please contact us at: firstname.lastname@example.org