WAGE ATTACHMENT
Set-up and Examples
Vista Wage Attachments
Establishing Wage Attachments in Set-Up
From the Payroll Application, select “Set-Up” and then open “Deductions”. Click on the “+” button to add a wage attachment. The following page
will be displayed.
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Vista Wage Attachments
Deduction Table Fields and their usage for Wage Attachment processing:
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Deduction Code
Description
Abbreviation
Pay Period Frequency
Type
Indicator
Enter a unique deduction code
Enter a description of the deduction
Enter an abbreviation
From the drop down, select the frequency for this deduction
From the drop down, select the type of deduction
From the drop down, select the indicator
•
•
•
Check box: This is a pretax deduction – this should NOT be checked for wage attachments.
Check box: This is a term life deduction – this should NOT be checked for wage attachments.
Check box: This is a condition of employment deduction – this should only be checked if this deduction is a condition of employment
deduction and should be considered as such when processing a tax levy.
•
•
•
•
Amount
Limit
Priority
Arrears
•
•
•
Tax Deferred Indicator
Tax Profile
Deduction Category
Leave this amount blank when setting up the wage attachment
Leave this amount blank when setting up the wage attachment
Do not assign a priority when setting up the wage attachment
From the drop down select the arrears option. Note that most garnishments would have arrears of ‘No
amount will be placed into arrears if there is insufficient funds’.
Leave the tax deferred indicator blank
Leave the tax profile blank
Select Wage Attachment from the drop down
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Vista Wage Attachments
Establishing Wage Attachments for Employees
From the Payroll Application, select Employees. Select the specific employee and from their payroll drop-down, select “Wage attachments”.
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Vista Wage Attachments
Employee Deduction page fields and their usage for Wage Attachment processing:
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Wage Attachment From the drop down, select the wage attachment to be assigned to this employee.
Active
Check this box to activate the wage attachment. Note that the system will not start withholding the garnishment until
the start date.
Pay Period Freq
This will be displayed from the corresponding Deduction table entry
Type
This will be displayed from the corresponding Deduction table entry
Indicator
This will be displayed from the corresponding Deduction table entry
Flag
From the drop down select the type of wage attachment. This field is used to determine the priority and calculation
formula. (See below for a chart of the flags and their associated categories.)
Category
This is system filled based on the flag assigned.
Start Date
Enter the start date of the wage attachment. This is required and determines the priority.
End Date
Enter the end date if this wage attachment has an assigned end date.
Priority
This will be determined during the payroll processing (validation and update phase) and the employee’s record will be
updated to reflect the correct priority. Any priority entered will be overlaid by the system generated priority.
Maximum %
Enter the maximum percentage for this wage attachment. Maximum percentage is used for support deductions and
student loans. If no maximum percentage is entered for support orders, the system assumes 50%. If no maximum
percentage is entered for student loans, the system assumes 10%. Enter the value to the right of the decimal (.50). If
there are multiple support orders with different maximum percentages, the lowest maximum percentage will be used.
Case Information Enter the information for this particular wage assignment. These fields are not used in the prioritization or calculation of
the wage assignment.
Amount/Pct
Enter the fixed dollar amount or percentage amount for this withholding order.
Limit
Enter the limit if this wage assignment is an upper limit or declining balance deduction.
Balance
Do not enter a balance. The balance will be calculated and maintained by the system.
Personal Ex Amt
Enter the personal exemption amount. This is used for tax levies.
Processing Fee
Enter the processing fee associated with this wage assignment.
Arrears
Do not enter arrears. The arrears will be calculated and maintained based on the arrears indicator assigned to the wage
assignment.
WAGE ATTACHMENT
Child support
Child support arrears
Medical support
Medical support arrears
Bankruptcy
FLAG
C
1
M
2
B
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CATEGORY
1
1
1
1
1
Vista Wage Attachments
Federal Tax Levy
State Tax Levy
Local Tax Levy
Creditor Garnishment
Federal Student Loan
State Student Loan
Federal Agency Debt
Garnishment Override
L
S
T
G
F
E
D
X
1
2
2
3
3
3
3
4
Prioritization of Wage Assignments
Wage assignments are grouped by category and then within category they are prioritized.
Category 1
Child support (C) and Federal Tax levies (L) are prioritized by start date and follow the first come first served rule. Bankruptcy (B) always has
priority over Federal Tax Levy (generally tax levies stop when a bankruptcy order is received and the IRS is contacted). Bankruptcy only has
priority over child support if the bankruptcy order is dated prior to 10/17/2005.
Medical Support (M) is prioritized after child support followed by child support arrears (1) and then medical support arrears (2).
Let’s look at an example.
•
•
•
Child support – start date = 10/15/2004
Bankruptcy – start date = 12/15/2004
Tax Levy – start date = 08/01/2003
The priority is as follows;
• Bankruptcy – priority 1
• Tax Levy – priority 2
• Child Support – priority 3
Bankruptcy is dated prior to 10/17/2005 so it has priority over child support. Tax Levy is dated prior to the child support so it has priority over the
child support.
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Vista Wage Attachments
Category 2
State tax levies have priority over Local tax levies. If multiple state tax levies are served, they are prioritized by start date. If local tax levies are
served, they are prioritized by start date.
Category 3
Category 3 wage attachments are prioritized by start date.
Calculation of Wage Attachments
Child Support Order
1. Determine disposable wages
a. Gross Wages – Employee Taxes = Disposable Wages
2. Determine the maximum amount that can be withheld for child support.
a. Disposable Wages * Maximum Percentage = Max Child Support Deduction
3. Compare the actual child support deduction to the Max Child Support Deduction allowed.
4. Subtract any wage attachments with a higher priority.
5. Subtract the child support deduction.
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Vista Wage Attachments
EXAMPLE
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Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 226.16
Wages:
901.17
901.17
901.17
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.30
68.94
68.94
27.63
.00
.81
33.94
.00
.00
439.22
Employee: Medicare Wages901.17 Medicare Taxes13.07 OASDI Wages901.17 OASDI Taxes55.87
Employer: Medicare Wages901.17 Medicare Taxes13.07 OASDI Wages901.17 OASDI Taxes55.87
Deds: UNION
15.00 UNFM
25.00
Wage Att: CHILD
399.22
Term Life1.17
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Child Supp Ded - CHILD Being Reduced
Since The Supp Max 399.22 Has Been Reached
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
Gross ($900) – Federal Tax ($103.30) – FICA ($68.94) – State W/H ($27.62) – Local W/H ($33.94) – SDI ($0.81) = 665.38
2. CHILD SUPPORT
Calculate the maximum child support deduction
Disposable wages * maximum percentage (default to 50%)
$665.38 * 60% = $399.22 (This employee had 60% entered in his child support garnishment record)
3. Compare the two results
4. Subtract any bankruptcy order or tax levy with a higher priority
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Vista Wage Attachments
5. Calculate the child support based on the deduction set up.
Child support max of $399.22 < $450.00
Child support = $399.22
Multiple Child Support Orders
1. Determine disposable wages
a. Gross Wages – Employee Taxes = Disposable Wages
2. Determine the maximum amount that can be withheld for child support.
a. Disposable Wages * Maximum Percentage = Max Child Support Deduction
3. Calculate the total child support deduction amount
a. Fixed dollar – sum total of fixed dollar
b. Percentage – calculate what the dollar amount would be using disposable wages and sum the amounts together
4. Divide each support order amount by the total support order amount to get the percent for each order.
5. Calculate each child support order by taking it’s percentage times the total $$ available for child support
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Vista Wage Attachments
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Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 226.16
Wages:
901.17
901.17
901.17
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.30
68.94
68.94
27.63
.00
.81
33.94
.00
.00
439.22
Employee: Medicare Wages901.17 Medicare Taxes13.07 OASDI Wages901.17 OASDI Taxes55.87
Employer: Medicare Wages901.17 Medicare Taxes13.07 OASDI Wages901.17 OASDI Taxes55.87
Deds: UNION
15.00 UNFM
25.00
Wage Att: CHILD
266.15 CSUP2
133.07
Term Life1.17
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Child Supp Ded - CHILD Being Prorated
Since The Supp Max 399.22 Has Been Reached
Child Supp Ded - CSUP2 Being Prorated
Since The Supp Max 399.22 Has Been Reached
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
$900.00 – $103.30 – $68.94 - $27.63 - $33.94 - $.81= $665.38
2. Calculate maximum child support deduction
Disposable wages * maximum percentage (default 50)
$665.38 * 60% = $399.22
3. Subtract any bankruptcy order or tax levy with a higher priority
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Vista Wage Attachments
$665.38 – 0 = $665.38
4. Calculate the total child support deduction
$450.00 + $225.00 = $675.00
5. Divide each support order amount by the total support order amount to get the prorated amount.
$450 / $675 = .6666
$225 / $675 = .3333
6. Calculate each child support order by taking the percentage * the maximum child support deduction
$399.22 * .6666 = $266.12
$399.22 * .3333 = $133.07
Sum together ($266.12 + $133.07 = $399.19) and adjust one order so that the total child support is reached
($399.22 – $399.19 = .03)
Add .03 to $266.12 = $266.15
Federal Tax Levy
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. Subtract all Bankruptcy and Child Support Orders with a higher priority from disposable wages
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages
4. Subtract any condition of employment deductions regardless of start date
5. Subtract the personal exemption amount from disposable wages
6. The adjusted disposable wages represent the wages subject to the federal tax levy
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Vista Wage Attachments
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Vista Wage Attachments
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Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
The Deduction Amt For Garnishment LEVYFED
Had To Be Reduced To Satisfy The Pers Exm Amt
Disposable Pay = 665.64
Pers Exm Amt = 300.00
Total Vol Ded = 15.00
84.36 Will Not Go Into Arrears
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 275.00
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00 900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00 390.64
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: LEVYFED
350.64
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
$900.00 – $103.13 – $68.85 - $27.63 - $33.94 - $.81= $665.64
2. Federal Tax Levy
Subtract all Bankruptcy and Child Support Orders with a higher priority from disposable wages
$665.64 – $0 = $665.64
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Vista Wage Attachments
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages.
$665.64 – $0 = $665.64
4. Subtract any condition of employment deductions regardless of start date.
$665.64 – $15.00 = $650.64
5. Subtract the personal exemption amount from disposable wages.
$650.64 – $300.00 = $350.64
6. The adjusted disposable wages represent the wages subject to the federal tax levy.
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Vista Wage Attachments
Bankruptcy
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. Subtract all Child Support Orders with a higher priority from disposable wages
3. Subtract any bankruptcy exception deductions
The remaining dollars are subject to bankruptcy
Note – you can reduce the net pay amount to zero
Page 18 of 32
Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Bankruptcy Order garnishment of 2000.00 being reduced
Because of maximum dollars subject of 665.64
UNION Deduction Of
15.00 Exceeds Pay
The Deduction Will Not Be Taken
15.00 Not Going Into Arrears
UNFM
Deduction Of
25.00 Exceeds Pay
The Deduction Will Not Be Taken
25.00 Going Into Arrears
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay .00
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
665.64
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Wage Att: BANK
665.64
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
$900.00 – $103.13 – $68.85 - $27.63 - $33.94 - $0.81 = $665.64
2. Bankruptcy
Subtract all Child Support Orders with a higher priority from disposable wages
$665.64 – $0 = $665.64
3. Subtract all Bankruptcy Exception deductions
$665.64 – $0 = $665.64
The remaining dollars are subject to bankruptcy.
Note – you can reduce the net pay amount to zero
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Vista Wage Attachments
State and Local Tax Levies
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. State and Local Tax Levy
Subtract all wage attachments with a higher priority from disposable wages
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages
4. Subtract any condition of employment deductions regardless of start date
5. Subtract the personal exemption amount from disposable wages
6. The adjusted disposable wages represent the wages subject to the state/local tax levy
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Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
The Deduction Amt For Garnishment LEVYLC
Had To Be Reduced To Satisfy The Pers Exm Amt
Disposable Pay = 665.64
Pers Exm Amt = 150.00
Total Vol Ded = 15.00
265.64 Will Not Go Into Arrears
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 125.00
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
540.64
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: LEVYST
350.00 LEVYLC
150.64
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
$900.00 – $103.13 – $68.85 - $27.63 - $33.94 - $0.81 = $665.64
2. State/Local Tax Levy
Subtract all Orders with a higher priority from disposable wages
$665.64 – $0 = $665.64
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Vista Wage Attachments
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages.
$665.64 – $0 = $665.64
4. Subtract any condition of employment deductions regardless of start date.
$665.64 – $15.00 = $650.64
5. Subtract the personal exemption amount from disposable wages.
$650.64 – $150.00 = $500.64
6. The adjusted disposable wages represent the wages subject to the federal tax levy.
$500.64 – $350.00 = $150.64
$150.64 is subject to the local levy
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Vista Wage Attachments
Creditor Garnishment
(Federal Agency Debt follows the same calculation)
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. CREDITOR GARNISHMENTS
Calculate maximum creditor garnishment deduction
3. Disposable wages * maximum percentage (default 25)
4. Subtract all wage attachments with a higher priority
5. Calculate the creditor garnishment based on the deduction set up
Page 23 of 32
Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Garnishment CREDGARN Cannot Be Taken In Full
Because Garnishment Maximum of 166.41 has been reached
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 459.23
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
206.41
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: CREDGARN 166.41
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
900 – 103.13 – 68.85 -27.63 -33.94-.81 = 665.64
40 * 5.85 = $234.00
665.64 – 234.00 = 431.64
2. CREDITOR GARNISHMENT
Calculate maximum creditor garnishment deduction
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Vista Wage Attachments
3. Disposable wages * maximum percentage (default 25)
665.65 * 25% = 166.41
40 hrs * federal min wage rate
40 * 5.85 = $234.00
665.64 – 234.00 = 431.64
166.41 is the max creditor garnishment amount
4. Subtract any withholding orders with a higher priority
166.41 – 0
5. Calculate the creditor garnishment based on the deduction set up.
Creditor garnishment is 200.00
Creditor garn max of 166.41 < $200.00
Creditor garn = 166.41
Page 25 of 32
Vista Wage Attachments
Student Loans
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. FEDERAL AND STATE STUDENT LOANS
Calculate maximum student loan deduction
Disposable wages * maximum percentage (default 10)
3. Calculate the maximum wage subject to garnishments
Disposable wages * 25%
4. Subtract from maximum wage subject to garnishment all wage attachments with a higher priority
5. Calculate the student loan based on the deduction set up
Page 26 of 32
Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Garnishment FEDLOAN Cannot Be Taken In Full
Because Garnishment Maximum of 166.41 has been reached.
Student Loan garnishment of 166.41 being reduced
Because of maximum dollars per loan of 133.13
Federal
Empl FICA
Empr FICA
State With
State Unemp
SDI/VDI
Local with
Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 492.51
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
173.13
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: FEDLOAN
133.13
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
900 – 103.13 – 68.85 -27.63 -33.94-.81 = 665.64
2. STUDENT LOAN Calculate maximum creditor garnishment deduction
Disposable wages * maximum percentage (default 25)
665.65 * 25% = 166.41
3. Subtract any withholding orders with a higher priority 166.41 – 0
4. Calculate the creditor garnishment based on the deduction set up
665.65 * 20% = 133.13
5. Creditor garn max of 133.13 < $350.00
Creditor garn = 133.13
Page 27 of 32
Vista Wage Attachments
Garnishment X
What is Garnishment Flag X?
•
This is an override category meaning that no special calculations are done and more importantly no limits (such as 60% for child
support or 25% for creditor garnishments are checked).
•
Used for voluntary wage assignments or when employee agrees to pay over the maximum amount.
•
Deducted after all category 1,2,and 3 and prior to miscellaneous deductions.
Multiple Order Examples
Example 1
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. Child support = 250.00 with 50% max
3. Creditor Garnishment #1 = 73.28 (start date = 3/16/2004)
4. Creditor Garnishment #2 = 156.99 (start date = 6/1/2005)
Page 28 of 32
Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
GarnishmentCREDGARNCannot Be Taken At All
Because Garnishment Maximum of 166.41 has been reached.
GarnishmentCREDGRN2Cannot Be Taken At All
Because Garnishment Maximum of 166.41 has been reached
Federal
Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 375.64
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
290.00
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: CHILD
250.00
1. Disposable Wages
900 – (103.13 + 68.85 + 27.63 + .81 +33.94) = 665.64
2. Child Support
665.64 * 50% = 332.82
332.82 > 250.00 – full child support of 250.00 is withheld
3. Creditor Garnishment #1
665.64 * 25% = 166.41
40 * 5.85 = 234.00
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Vista Wage Attachments
Max subject to creditor garnishment is 166.31
4. Creditor Garnishment #2
166.41 – 250.00 = -83.59
No $$ is available for the creditor garnishment.
Example 2
1. DISPOSABLE WAGES = GROSS – EMPLOYEE TAXES
2. Child support = 75.00 with 50% max
3. Creditor Garnishment = 73.28 (start date = 3/16/2004)
4. Creditor Garnishment = 156.99 (start date = 6/1/2005)
5. Student Loan Garnishment Override = 200.00
Page 30 of 32
Vista Wage Attachments
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports:
Federal
Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions
Check Date - 06/15/2006
Pay Period End - 06/15/2006
ACME SERV 000001068 Black Kenneth
Gross Wages 900.00
Net Pay 259.23
Wages:
900.00
900.00
900.00
900.00
.00
900.00
900.00
.00
.00
900.00
Taxes:
103.13
68.85
68.85
27.63
.00
.81
33.94
.00
.00
406.41
Employee: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Employer: Medicare Wages900.00 Medicare Taxes13.05 OASDI Wages900.00 OASDI Taxes55.80
Deds: UNION
15.00 UNFM
25.00
Wage Att: STLOAN
200.00 CHILD
75.00 CREDGARN
73.28 CREDGRN2
18.13
ACMESERV 000001068 Black Kenneth
Co- ACME Dpt- SERV Empl-000001068
Earnings Hours
Rate
Gross
Date
Chk Pos/Job Shf Ded Gen SWT SUI LWT Id
01
86.66667
10.3846
900.00
06/15/2006 01 PROG1
Y PA PA PHNR
Summary Totals: Earning Type
Hours
Amount
01
86.66667
900.00
Totals
86.66667
900.00
Tot Hrs Prc
86.66667
Tot Hrs Not Prc
.00000
Garnishment CREDGRN2 Cannot Be Taken In Full
Because Garnishment Maximum of 166.41 has been reached.
Wage Attachment STLOAN Has No Priority
Calculation may not be accurate.
1. Disposable Wages
900 – (103.13 + 68.85 + 27.63 + .81 +33.94) = 665.64
2. Child Support
665.64 * 50% = 332.82
332.82 > 75.00 – full child support of 75.00 is withheld
3. Creditor Garnishment #1
665.64 * 25% = 166.41
40 * 5.85 = 234.00
Max subject to creditor garnishment is 166.41
Page 31 of 32
Vista Wage Attachments
166.31 – 75.00 = 91.31
1st creditor garnishment to be withheld
91.31 – 73.28 = 18.13
4. $18.31 is available for the 2nd creditor garnishment
5. Full $200.00 is taken for student loan because this was established as a category X garnishment.
Page 32 of 32