In the last post, we set a payroll item to deduct a wage garnishment for an employee in the sample QuickBooks file. The setup of the payroll item, instructed QuickBooks to deduct 25% of the net paycheck.
Now, we want to do further setup, allowing us to automate the wage garnishment process, just as the rest of the payroll process is automated.
Navigate to the Employee Center. Select the employee. In our case, the employee is Gregg Schneider.
The above screenshot shows the Payroll Info tab. The Earnings items for this employee are listed in the left-hand section. In the right-hand section are the other items we can add that will affect the employee’s paycheck.
A dropdown list in available on the rows of this section. The dropdown list will show the payroll items available. In the case of this screenshot, we selected the wage garnishment item we set up for Gregg Schneider. That process was detailed in the last post.
Once that item is added, as it is in the graphic, click OK.
When you process a payroll for an employee, it is possible to click on the employee’s name to see the detail of the paycheck being created.
You can see in the graphic the payroll item for the garnishment added and the effect that has on the net paycheck.
The amount withheld is posted to the liability account specified when the payroll item is created. This can be setup as a scheduled liability just as tax amounts from paychecks can. You will have to complete that step yourself. There’s a link, “Manage Payment Methods” at the bottom of the Payroll Center/Pay Liabilities window.
We setup the payroll item with a vendor name and the number that identified this case to the agency. When the liability check is created, those pieces of information will be there automatically.
When selecting the liability by clicking on the View/Pay button, the following check appears.
All ready to go and the process is complete.