Garnishments

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A garnishment is a legal procedure, authorizing a deduction from an employee’s earnings to satisfy a debt. It refers to a court proceeding through which a creditor seeks to reach an employee’s earnings before they are paid, so they can be used to satisfy a legal claim against the employee. This component enables you to track and manage employee garnishments, for example for child & spousal support and federal & state tax levy’s.


IMG Path & Table:Create Document Category

Path: Payroll -> Payroll: USA -> Garnishments -> Master Data -> Document -> Create document category

Table: V_T5UG1





In this step, you create the categories that are used to identify various garnishment documents.

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IMG Path & Table:Create Originator

Path: Payroll -> Payroll: USA -> Garnishments -> Master Data -> Document -> Create originator

Table: T5UGM



In the Garnishment Document infotype (Infotype 0194), the originator describes the legal entity that has issued the garnishment document. In this step, you create a set of originators for the garnishment documents that your system will process

The name range for customer-defined originators is A to Z

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IMG Path & Table:Create Originator

Path: Payroll -> Payroll: USA -> Garnishments -> Master Data -> Document -> Create originator


Table: V_T51RK

In this step, you create the rules that will apply during bank transfer of the garnished amounts

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IMG Path & Table:Create Order Types

Path: Payroll -> Payroll: USA -> Garnishments -> Master Data -> Order Types -> Create order types

Table: V_T5UG0






Order types are used to describe the various deductions that exist within a garnishment document.

You also determine how the order types are to be processed by the system. For example, you determine whether certain entries are permissible within certain fields in the Garnishment Order infotype (Infotype 0195

A wage type is assigned to every Garnishment order type set up

NOTE: While reviewing the order types found in this view, please note that pre-defined order types FT (Federal Tax Levy) and ST (State Tax Levy), and any order types duplicated from them, may only be assigned a value of 1 (Optional) in the Initial balance and Deduction fields. Any other entries for these order types will disrupt processing.

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IMG Path & Table:Define Adjustment Model Texts for the Disposable Net

Path: Payroll -> Payroll: USA -> Garnishments -> Master Data -> Order Types -> Garnishable Amounts -> Disposable Net -> Define adjustment model texts for the disposable net

Table: T5UG5



The difference of regular pay and taxes results in the Disposable Net. An adjustable model can be configured to adjust the disposable net at the garnishment order level.

In this step, you define which model to use for adjusting the disposable net together with the corresponding texts