Firstly, let’s understand the term of garnishment. Garnishment is a valid action in which a court’s order demands the person’s earning information to hold back the payment of a debt such as a child support of an employee. So, the personal earning does not include the income earned as tips but includes all wages, salaries, commission, bonuses and income from a pension or retirement program. Now, in this article, we are going to discuss how to set up child support garnishment in QuickBooks.
Normally, garnishment has two types which is government tax and child support. Post deduction from the employee paycheck is called child support. It is feasible that you will have more than an employee in the child support deduction. In the Chart of Accounts, it is not mandatory to have the employee special liability accounts. Otherwise, it is better to have an employee special deduction items in your Payroll item list.
Important tips for the Child support Garnishment in QuickBooks that you should know before setting up
- Tax amount deduction process should have to complete from the employee’s bank check.
- The particular payroll product contains all removal which finishes up the particular employee.
- Most liability accounts are optional in the chart of accounts.
- Only a single worker will authenticate his own child support deduction according to the terms and conditions.
How to Set Up Child Support Garnishment in QuickBooks?
Let’s know about the setting up the child support in QuickBooks in these below steps:
- In the beginning, click on the List menu then on the “Payroll item”.
- Then, select the “New” button.
- As per the requirements, click on the customer set up and EZ set up then proceed.
- After that, you have to click on the Deduction option and click on the “Next”.
- Read the instructions properly and give the name to process the payroll deduction and then press on Next.
- Fill up the name of the agency mainly for the liability to be paid and move forward.
- Select the option given of “Tax Tracking Type” in the drop-down list choices.
- Ensure that you do not have to click any options and go next.
- Tick on the Next option if default widow taxes window will display on the desktop screen.
- Click on the “Net to calculate amount after taxes” from the list of net windows vs Gross.
- You can access for calculate the total deduction which you have decided before the taxes.
- If in case you opt the gross then confirm that you fill up the “Default Rate and Limit”.
- After that, you should have to add the decimal sign or the percentage as per your requirements.
- In the end, press on the Finish option.
In the employee data record, steps to set up the child support garnishment below:
- Firstly, tick on the Employee option.
- Ensure that select the option of “Employee Center” from the given options.
- Move further and press the Employee’s name and then press on the Payroll information button.
- After that, enter all the information related to it then, click on the product name and select the garnishments items.
- Enter the option on all the company contributions, additions and deductions.
- Press on the “Action field” and type the deducted amount.
Create Liability Payment schedule QuickBooks
- Firstly, click on the “Employees” button.
- Select the option of “Payroll Taxes and Liabilities” from the list of preferences.
- Click on the option of Edit payment dues and press on it.
- Then a payroll set up window will show up on the desktop and you have to click on the “review scheduled tax payment list”.
- After that, enter the “Continue” button and you will get the message “add or edit schedule payments for benefits and other payments”.
- And, after that you will get the complete record authentication about the child support or all other wage garnishments.
- After that, move forward and enter the Edit option and click on the payment frequency.
- Lastly, click on the Finish button.
Customer Care services for Child Support deduction
You can reach us through QuickBooks Payroll Support Number for any problem while handling the Child support and other tax deductions. And any other information you required related to QuickBooks then contact our QuickBooks ProAdvisors by calling us at QuickBooks Support Customer Service Number.