[PR] How to Setup a Child Support Deduction

Setting Up a Child Support Deduction Code

Objective

This SOP outlines the steps to create a child support deduction code for employees, ensuring compliance with garnishment requirements.

Key Steps

Step 1: Access PR Deductions and Liabilities 0:22

• Navigate to the PR Deductions and Liabilities section.

• On the Info tab, select 'Deduction' for the type.

Step 2: Select Calculation Category 0:30

• Choose 'Employee' as the Calculation Category.

• Select the method: 

  • 'N' for Rate of Net (most commonly used)

  • 'A' for Fixed Amount.

Step 3: Choose Garnishment Group 0:40

• Select the appropriate garnishment group.

• Ensure it aligns with how net pay is calculated.

Step 4: Create Garnishment Group 0:50

• Create a group number and a description.

• Add earnings and deductions that define net pay.

• Set amount fields 1 and 2 to 0.

Step 5: Set Limit Type 0:59

• Set the Limit Type to 'Calculated Amount'.

• Enter a limit.

• Select 'Lifetime' on the Apply dropdown.

• Check 'Accumulate Subject Amounts'.

Step 6: Additional Info Tab 1:09

• On the Additional Info tab, set the deduction to automatically update to accounts payable.

Step 7: Basis Codes Tab 1:19

• Add all earnings that contribute to the Child Support Calculation.

Step 8: Assign Garnishment to Employee 1:32

• Navigate to PR Employee Deductions and Liabilities.

• Check the box for 'Employee-Based'.

• Select a frequency code (e.g., 'A' for Always or 'W' for Weekly).

Step 9: Enter Product Name and Sequence 1:32

• Enter a product name.

• For the first garnishment, enter '1' in the sequence field; for the second, enter '2', and so on.

Step 10: Calculation Section 1:38

• Use 'Override Standard Rate Amount' or 'Override with Fixed Amount' and enter the code.

• If a limit is required, check 'Override Standard Limit' and enter the amount.

Step 11: Set Minimum Net Pay 1:49

• Set the minimum net pay if required by the court order.

Step 12: Finalize Setup 1:55

• Select 'Based on Percent of Net Pay' or 'Based on an Amount of Net Pay'.

• Save the record once all setup is complete.

Cautionary Notes

• Ensure compliance with local laws regarding child support deductions.

• Double-check all entries for accuracy before saving.

Tips for Efficiency

• Use templates for common garnishment codes to save time.

• Regularly review and update deduction codes to reflect any changes in employee circumstances.

Link to Loom

https://loom.com/share/ac777ada46b5439399e5eb176d4407a0