The current software (3.2) now allows a deduction based on a “Percentage of Disposable Income”, which is required for the garnishment of various family support obligations and court judgements. However, court orders specify that the amount that needs to be withheld is the lesser of the “% of disposable income” or a maximum specified amount. (see highlighted attached notice from Child Support Enforcement Agency)
If the % of disposable income is greater than the specified amount, there needs to be a limit set for this maximum amount.
This calculation affects any Employer that has part-time employees with garnishments that work a different number of hours each week and therefore, have different disposable incomes each pay period which could limit the garnishment deduction withheld.
On the Employee maintenance – Deductions/Earnings screen (see attachment), there is a “Max Amt” on deduction line, however, the payroll manual instructions (2.7) specify that this is the Maximum for the year, not for each payroll period. Is this correct? If yes, please add another limit that can specify a maximum limit for each payroll period.
What was the find on this as this is an issue for us as well.
I think we have an option to handle this in MCSJ. I'll post back when I find out.