How do i set up a garnishment in quickbooks?

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How do i set up a garnishment in quickbooks?

Setting up a new wage garnishment for QuickBooks payroll is a multiple step process.

First, set up an Other Current Liability type account to record the amount withheld from employee’s pay:

Go to Lists >Chart of Accounts
Right click and choose to add New
Choose Other Current Liability as the account type
Name it Wage Garnishments Payable
Check the “subaccount of” box and make it a sub-account of your Payroll Liabilities account

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Next, create the payroll item that will appear on paychecks

Go to Employees > Manage Payroll Items > New Payroll Item
Select Custom Setup on the next screen
Select Deduction on the next screen
Name the deduction, Child Support for example, on the next screen
Enter the name of the agency to whom you will pay the garnishment
Enter the account number, if applicable
Select the Wage Garnishment Payable account you just set up as the account
On the next screen, “tax tracking type”, choose None
On the next screen, “taxes”, nothing should be checked
On the next screen, “calculate based on quantity”, choose Neither
On the next screen, “gross vs. net”, gross pay is checked…this is fine as this is not applicable to this item
On the next screen, “default rate and limit”, enter the default rate if you only have one employee subject to this item, if you will use with multiple employees then leave blank -you will set the rate in employee screens
Select Finish, a box will appear reminding you to set up scheduled liability payments for this item

Next, set up a liability payment schedule

Go to Employees > Payroll Taxes and Liabilities > Edit Payment Due Dates / Methods
The payroll set up window will appear. Click continue on the “review your scheduled tax payments lists” screen that comes up first
Click continue on the next screen “add or edit scheduled payments for benefits and other payments”
On the next screen you should see the “Child Support” or other wage garnishment you just set up
Select it an choose Edit
Select your payment frequency on the next screen
Select Finish and then Finish again to close the payroll setup window

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Finally, add the payroll item to the employee subject to the garnishment

Go to Employee Center from icon bar or home screen
Select the employee, right click and choose Edit
Change the view to “Employee and Compensation Info”
Select the “Child Support” or other garnishment item in the deduction section
Enter the amount to deduct in the amount column
Click okay

In QuickBooks, creating and paying child support garnishment is an important thing. Most users get confused in this. So, our QuickBooks customer service team have tried to discuss key facts for support garnishments. You can also get help from a certified Intuit expert on this topic if you still have any query after reading this post.

Two common types of garnishments are child support orders and government tax levies. Child Support is a post-tax deduction from the employee paycheck. In a Child Support Deduction, it is possible that you will have more than one employee. It is not important to have employee special liability accounts on your Chart of Accounts in child support. In this, It is good to have employee special deduction items in your Payroll Item list.

Steps to create a child support garnishment

In menu Lists, choose Payroll Item List
Click on the Payroll Item button and choose New
Then select the EZ-Setup method and click the Next button
Select the Other Deduction option
Then Check the Wage Garnishment option
After this enter the information about who the money is sent to, the account number that must be displayed on the check, and how usually the money must be sent
Click the next button and then click finish.
Now child support garnishment created in your QuickBooks. If you want to edit this or you want to change the name, you can easily do it.

Adding the Child Support Garnishment to the Employees Record

Find and Edit the Employee, in employee center
With the help of Change, Tabs drop-down menu switch to the Payroll & Compensation section
After this Click into the Additions, Deductions & Company Contributions section.
Select the deduction item and give it an amount, in the item name column.

The detailed amount will be cut from the employee’s paycheck and sent to the Liability account and will be shown on your Chart of Accounts in every week when you run payroll.

You will go to the Payroll Tab of the Employee Center and select it from the Pay Scheduled Liabilities section to generate the check to be sent to the Agency collecting the money.

Now, you can create and pay child support garnishment in QuickBooks easily. For more help and support related to Payroll, you can get in touch with our professional experts on QuickBooks Payroll Support Number

Call Our Quickbooks Toll Free Number

+1(855)548 3394

How to Garnish Wages in Quickbooks?

Small businesses that have employees subject to wage garnishment require a way to list those garnishments in their financial bookkeeping software. Quickbooks provides a way to count garnishments as a liability. Since employees may only have a certain percentage of their wages garnished, pay the garnishments in the priority set by the American Payroll Association. Since laws vary by state, you must know how much you are required to garnish from the paycheck as part of a garnishment.