Managing Disbursement of Garnishments

The following procedure will guide you through the process of setting up and applying garnishments to employees using Spectrum. Part A provides instructions for setting up the necessary deduction code for garnishment in Payroll; Part B addresses applying the garnishment deduction to the employee in Payroll; Part C discusses disbursing the garnishments in Accounts Payable.

Part A – Setting up the Deduction Code for the Garnishment

  1. On the Site Map, click Payroll > Maintenance > > Deduction/Add-on Code. Click New.

  2. At the Deduction/add-on code field, enter the code for the deduction (garnishment) you will be applying to the employee.

  3. At the Description field, enter a brief description of the garnishment.

  4. On the Properties tab, select the Deduction checkbox.

  5. Proceed to enter all applicable garnishment detail information on the Properties, Tax Effects and Limits tabs.

  6. On the A/P Invoice tab, select the Create A/P invoice checkbox and press Enter.
    Note: Make sure to leave the Vendor field blank because this code will be applied on an employee-by-employee basis.

  7. In the Invoice approval section, enter any invoice approval information you want to apply to the garnishment and click OK.

Part B – Applying the Deduction to the Employee in Payroll

  1. On the Site Map, click Payroll > Maintenance > Employee Deduction/Add-on.

  2. At the Employee code field, enter the employee code to whom you are applying the garnishment, or press F4 to search and select an employee code.

  3. At the Add-on/ded code field, enter the deduction code you added in step 3 (Part A).

  4. In the Status field, use the drop-down menu to select the garnishment's status. Options include Recurring, One time, Inactive, or Skip once.

  5. The A/P Invoice Details window displays. At the Vendor field, enter the appropriate vendor code to search and select a vendor code.

  6. At the Short remarks and/or Extended remarks fields, identify the garnishment case number so that the Accounts Payable clerk knows where to send the garnishment check.

  7. At the %/amount field, enter the garnishment amount as a percentage.

  8. At the Limit field, enter the Annual and Monthly garnishment amount limits.

  9. Click OK twice to return to the Site Map.

    When the Payroll check run is performed, the deduction set up in Part B will be garnished from the specified employee's check. The unposted invoice created at this time will be sent to the Accounts Payable module. Continue on to Part C for instructions on disbursing the garnishment.

Part C – Disbursing the Garnishment in Accounts Payable

When disbursing garnishments, the Accounts Payable clerk is responsible for updating the garnishment from this point forward as well as noting the A/P batches as they appear. There should be a specific batch set up for garnishments with a name such as, "Payroll Batch". When the batch code for garnishments is noted, the Accounts Payable clerk should update the batch immediately. Additionally, it is recommended that a reminder of some sort be set up reminding the Accounts Payable clerk to print checks, because garnishments often must arrive at the court within three days of check issuance.

Reviewing Batch Codes for Garnishments

  1. On the Site Map, click Accounts Payable > Data Entry > Vendor Invoices.

  2. Click the Totals button to view the Unposted Invoice Totals screen.

  3. Review the unposted batch totals, taking care to note any garnishment batches that appear. If a garnishment is noted, then proceed to print a normal check run.

  4. Click OK twice to return to the Site Map.