Sage HRMS Garnishment Manager Installation, Setup and User Guide. July 2014

Transcription

1 Installation, Setup and User Guide July 2014

2 This is a publication Delphia Consulting, LLC. Delphia Consulting, LLC has made every effort to ensure this documentation is correct and accurate but reserves the right to make changes without notice at its sole discretion. Use, duplication, modification or transfer of the product described in this publication, except as expressly permitted by the Delphia Consulting, LLC License Agreement is strictly prohibited. Individuals who make any unauthorized use of this product may be subject to civil and criminal penalties. Copyright 2014 Delphia Consulting, LLC, Inc. All rights reserved. Unauthorized duplication prohibited. Garnishment Manager is a trademark of Delphia Consulting, LLC. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its affiliated entities. All other trademarks are the property of their respective owners. Your use of this document and the Sage HRMS HR Actions product described herein is governed by the terms and conditions of the End User License Agreement ("EULA") or other agreement that is provided with or included in the product. Nothing in this document supplements, modifies or amends those terms and conditions. Except as expressly stated in those terms and conditions, the information in this document is provided by Delphia Consulting "AS IS" and Delphia Consulting disclaims all express, implied or statutory warranties of any kind, including but not limited to the warranties of merchantability, fitness for a particular purpose or of non-infringement. No implied license is granted to you under any Delphia Consulting intellectual property or trade secret right. Delphia Consulting reserves the right to revise, supplement, or remove information in this document at any time without notice to you or others.

3 Table of Contents Overview... 5 Support... 5 Supported Versions of Sage HRMS... 5 Legal Disclaimer... 6 Overview... 7 Supported Garnishments... 7 Garnishment Priority... 7 Garnishment Rules and Limits... 8 How it Works... 9 Child Support Logic Other Garnishment Logic Preparing Sage HRMS Optional Fields setup Deduction Code setup Garnishment Manager Installation System Requirements Supported Versions of Sage HRMS Work Station Requirements Installing Garnishment Manager Garnishment Manager Setup System Setup Establishing the Database Connection Setup Registering Garnishment Manager Mapping to Sage HRMS Employee Garnishment Deduction Setup Work State Adding Deduction Records Garnishment Date and Ordered Amount Garnishment Optional Fields Child Support Deduction Setup State Tax Levy Deduction Setup Creditor Deduction Setup Student Loan Deduction Setup Federal AgencY Deduction Setup IRS Levy Deduction Setup Payroll Processing with Garnishment Manager Calculating Garnishments State Specific Nuances Alaska (Rule 14) Arkansas (Rule 5) Kentucky (Rule 2) Florida (Rule 3) Hawaii (Rule 11) Maryland (Rule 1) Maryland (Rule 12) Massachusetts (Rule 7) Page 3 of 44

4 Michigan North Carolina (Rule 13) North Dakota (Rule 8) Oregon (Rule 9) South Dakota (Rule 4) Tennessee (Rule 10) Virginia Washington DC (Rule 6) Page 4 of 44

5 Overview This document includes instructions for the installation, setup and implementation of. Make sure you have the following items before you begin an upgrade: o Release Notes Important! We recommend that you have your implemented by a certified Sage HRMS Garnishment Manager Consultant or a member of the Garnishment Manager Professional Services Team ( ). SUPPORT Technical support for is available via support@hrmsplugins.com or call support Monday through Friday, 8 a.m. to 6 p.m. Eastern Time telephone Eastern Time at support provided as part of Sage Business Care is not an appropriate substitute for a properly planned and executed implementation project lead by a certified implementation consultant. SUPPORTED VERSIONS OF SAGE HRMS Version of works with the following: Sage HRMS 10.1 Sage HRMS 2012 Sage HRMS 2014 Page 5 of 44

6 Legal Disclaimer Garnishments are governed by various federal laws and administrative regulations and also by various state laws and regulations. It s complicated! Laws change often. Garnishment Manager for Sage HRMS should not be relied upon as the basis for your understanding of applicable federal and state laws and regulations. Delphia Consulting, LLC is not a law firm nor are its employees attorneys and neither are providing legal advice. Garnishment Manager is intended to be a tool that facilitates the calculations required to comply with the various federal and state laws and regulations using the choices you select as parameters based on your understanding of the laws. Disclaimer of Warranty DELPHIA CONSULTING, LLC (DELPHIA) MAKES NO OTHER WARRANTIES REGARDING THE SOFTWARE, INCLUDING WITHOUT LIMITATION, EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ANY OTHER WARRANTY, EXPRESS OR IMPLIED. Limitation of Liability IN NO EVENT SHALL DELPHIA BE LIABLE FOR ANY INCIDENTAL, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES, LOSS OF BUSINESS, LOSS OF PROFITS, LOSS OF GOODWILL, OR TORTIOUS CONDUCT RELATING TO, CAUSED BY, OR ARISING OUT OF ANY BREACH OF OBLIGATIONS OR DELAY IN DELIVERY OF SOFTWARE UNDER THE AGREEMENT, OR FROM LICENSEE S USE OR INABILITY TO USE THE SOFTWARE, EVEN IF DELPHIA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES OR CERTAIN TOR-TIOUS CONDUCT, SO THE ABOVE LIMITATION MAY NOT APPLY TO LICENSEE. ANY DAMAGES THAT DELPHIA IS REQUIRED TO PAY FOR ANY AND ALL CAUSES, WHETHER FOR NEGLIGENCE, BREACH OF CONTRACT, OR OTHERWISE, AND REGARDLESS OF THE FORM OF THE ACTION IN THE AGGREGATE, SHALL BE LIMITED IN AMOUNT TO THE LICENSE FEES PAID BY LICENSEE TO DELPHIA OR IT'S RESELLER FOR THE SPECIFIC COPY OR COPIES OF SOFTWARE. Page 6 of 44

7 Overview is a companion product to Sage HRMS Payroll that calculates and updates Sage HRMS with appropriate child support and garnishment deductions. SUPPORTED GARNISHMENTS The Garnishment Manager for Sage HRMS calculates the appropriate deduction amount for the following types of garnishment orders: Child Support - An income withholding order (IWO) is the court ordered deduction of a specific amount from a non-custodial parent s income for payment of child support. All entities, including state/tribal/territorial child support agencies, courts, tribunals, attorneys and individuals are required to use the standardized withholding form entitled Income Withholding for Support (IWO) (OMB ). IRS Levy - Federal IRS tax levy of their wages. State Tax Levy State, county or city tax levies follow the rules of the respective state. Student Loan Student loan garnishments can be from the US Department of Education or State approved guarantors. By default, Garnishment Manager follows federal rules. Garnishment Manager allows you to override the federal rules per the instructions found on an order from a State approved guarantor. Federal Agency - Garnishment orders received from federal agencies other than the Department of Education for student loans and the IRS for tax levies. Creditor Garnishment - When an employee fails to pay money owed to a creditor the creditor can file for a court ordered wage garnishment. The Federal CCPA law limits the amount that can be garnished and some states have also adopted their own limits. The following situations are not supported by Garnishment Manager for Sage HRMS and may require the user to take specific action: Bankruptcy Court Orders These orders are generally absolute and do not require minimum disposable pay calculations and should be entered into Sage HRMS as a regular deduction in accordance with the order. Garnishment Manager does not manage bankruptcy court orders in any manner. Supplemental pay runs in which the desired result it to exclude garnishments from being withheld may require the user to enter timecard entries in Sage HRMS Payroll to override the garnishment deduction(s). Voluntary wage assignments are not managed in by Garnishment Manager. GARNISHMENT PRIORITY Garnishment Manager automatically gives priority to child support orders and follows applicable state or federal rules to prioritize multiple child support orders. It is the responsibility of the user to properly prioritize all other non-child support orders by entering the date the order was received, or other date as appropriate, into the deduction Starts date on the Employee s Earnings/Deduction screen in Sage HRMS. Page 7 of 44

8 If a Child Support order is received after receiving an IRS Tax Levy, the user should contact both the IRS and the Child Support agency and request further guidance as to priorities; in most cases, one or both will provide updated orders and or instructions. An employee who declares bankruptcy is usually still obligated to pay child support. An employer should continue to withhold child support unless you are notified you are no longer responsible for withholding and the trustee of the bankruptcy court has taken over payment of child support. GARNISHMENT RULES AND LIMITS Delphia Consulting attempts to keep current on the various State and Federal laws which impact garnishments. However, it is your responsibility to assure that each employee s garnishments are calculating properly. Garnishment Manager uses applicable state or federal rules to assure an appropriate minimum disposable pay. When an employee has multiple garnishments, Garnishment Manager will prioritize the deductions using federal or applicable state rules. The prioritization methods include: Concurrent Some state rules require a garnishment be deducted concurrent with other garnishments without giving other garnishments priority. Priority - Some state rules require a garnishment be reduced by the full amount of other garnishments that have priority. CCPA Federal law may require, and some states follow the Consumer Credit Protect Act s (CCPA) rules to limit the aggregate garnishment deductions that may be withheld. If a state has adopted their own garnishment laws, the employee is subject to whichever law, federal or state, is more beneficial to the employee. Your annual support & maintenance covers updates to the Garnishment Manager including updates to our state and federal rules tables. Rules can change with little apparent notice. We ask for your assistance by notifying us when you are made aware of a change or have a particularly difficult garnishment. We are glad to help you calculate garnishments outside of the Garnishment Manager until we can update the rules tables. Page 8 of 44

9 HOW IT WORKS Garnishment Manager is used once payroll is prepared and ready for check printing except for determining the child support and garnishment deductions. For any employee with an active child support or garnishment deduction, Garnishment Manager reads un-posted check details from Sage HRMS and uses this data to compute various federal and state definitions of pay: Gross Pay Federal Agency Disposable Pay CCPA Disposable Pay Child Support Disposable Pay by state State Levy Disposable Pay by state IRS Take-home Pay Net Pay Garnishment Manager collects data from the employee s child support and garnishment deductions records in Sage HRMS payroll. This data includes the ordered amounts and other relevant attributes of an order that is maintained using Optional Fields on each employee s child support or garnishment records in Sage HRMS payroll. To calculate the appropriate child support, garnishment, and administrative fee, Garnishment Manager uses the calculated definitions of pay, the amounts and attributes of each child support of garnishment deduction and applies logic based on the federal and state rules to determine the appropriate deductions amounts. These amounts will have taken into consideration any limits and/or prioritization based on applicable federal and state rules. Garnishment Manager writes a deduction record for each deduction processed back to the Sage HRMS payroll time card file. When the Sage HRMS payroll user runs the Calculate Payroll process, the child support and garnishment deduction time card records are used in the calculation of payroll. The process can be rerun as many times as necessary until a perfect payroll is obtained. When the payroll is finalized through the Print/Post process, all temporary child support and garnishment time card records are deleted. Page 9 of 44

10 CHILD SUPPORT LOGIC Garnishment Manger gives priority to Child Support orders over any other type of garnishment. Each child support order will be a separate deduction record in Sage HRMS. There is no limit as to how many child support orders can be processed for an employee. The Starts date on the employee s deduction record tells Garnishment Manager the order in which to process the child support orders. Garnishment Manager follows these high level steps in arriving at the appropriate child support deduction amounts. 1. Calculates the state specific Child Support Disposable Pay. 2. Calculates the maximum allowable child support deduction for all support orders using appropriate percent limit of disposable pay based on applicable state or federal rules considering whether the employee is more than 12 weeks in arrears and whether or not there is a second family. 3. Computes the sum of all cash support orders and NMSN non cash orders 4. Determines the allocation method, prorate or equal, based on the work state. 5. Aggregate and priorities the individual ordered amounts for all orders. Each state has its own priority. If the state does not publish a priority the sort order used on the national form is used: Current Past Due Current Medical Past Due Medical Spouse Past Due Spouse Other 6. Computes the allowable deduction amount for all orders for each component e.g. Current, Past, etc. Iteratively processed based on the state s priority e.g. Current, Past, etc. Allocated between multiple orders based on allocation rule, e.g. prorate or equal and limit an equal allocation such that the allocated amount is not greater that the specific order. Computes the remaining maximum deductions for child support 7. Backs out non cash NMSM amounts allocated to each order and prepared the time card deduction records that will be written to Sage HRMS payroll. 8. Determines whether the admin fee is permitted e.g. if no deduction is permitted for the specific order, the admin fee is set to zero. 9. Passes the computed child support deduction(s) and related admin fee(s) to the step where Garnishment Manager calculates non child support garnishments Page 10 of 44

11 OTHER GARNISHMENT LOGIC Non child support orders include: Creditor Garnishment Federal Agency IRS Levy State Tax Levy Student Loan Garnishment Manager follows these high level steps in arriving at the appropriate garnishment deduction amounts. Each non child support garnishment is evaluated in order based on the Starts date entered on the employee s deduction record. Not every step is performed for each type of garnishment. Which steps are applied depends on the type of garnishment and the applicable federal and/or state rules. 1. Calculate a deduction amount or deduction limit based on the attributes entered into the following Optional Fields: 2ORDPERCENT 3OVRDDPBASIS 4OVRDERULE This step typically applies when an order indicates a specific percent to of disposable pay, For example: Student loan garnishment indicted to withhold 15% of disposable pay Creditor garnishment indicates to withhold everything over10% of gross pay. In this case, the 4OVRDRULE would also need to be set to Excess. 2. Compute a deduction amount or deduction limit based on the appropriate state or federal minimum wage test. 3. Compute a deduction amount or deduction limit based on the appropriate state or federal CCPA rules. 4. Compute any specific deduction caps based on appropriate state or federal rules. 5. Determine the maximum allowable deduction based on applicable state or federal rules from the amounts computed in steps In the case of an IRS Levy, compute the deduction subtracting the tentative deduction by subtracting the IRS Exemption for IRS publication 1494 from IRS Take-home pay. 7. Compute any aggregate limits on the deduction taking into consideration all priority child support and garnishment orders. 8. Determines whether the admin fee is permitted e.g. if no deduction is permitted for the specific order, the admin fee is set to zero. 9. Write a deduction record to the Sage HRMS time card for every child support or garnishment deduction evaluated with the proper deduction or zero amount in the case where the deduction was limited entirely. Note: The tracking of Lifetime Maximum deductions is tracked within Sage HRMS, not Garnishment Manager. Page 11 of 44

12 Preparing Sage HRMS OPTIONAL FIELDS SETUP Before you can use Garnishment Manager for Sage HRMS, Optional Fields that are required by Garnishment Manager must be created. Setting up Optional Fields manually is a two-step process. First you will create Optional Fields then you will assign them to Employee Earnings/Deductions. Note: Delphia Consulting can provide a SQL script as part of the installation process to automatically add the required Optional Fields to each payroll database. Call support for this SQL script. Page 12 of 44

13 The following table lists the Optional Fields required by Garnishment Manager. Optional Field Description Type Length Validate Values ChildSupport Creditor 1GARNTYPE Garnishment Type Text 15 Yes FedAgency IRSLevy STLevy StudLoan 2ORDPERCENT Ordered Percent Number 2 decimals 3OVRDDPBASIS Override DP Basis Text 60 4OVRDERULE Override Rule Text 10 5FILINGSTAT Filing Status Text 6NOEXEMPT No of Exemptions Number 7BLIND65EXP 65/Blind Exemptions Number 8NODEPENDTS No of Dependents Number 9ADMINFEE Admin Fee Number CS1CUR CS Current Number CS2PAST CS Past Due Number CS3CURMED CS Current Medical Number CS4PASTMED CS Past Due Medical Number CS5SPOUSE CS Spouse Number CS6PASTSPOUS CS Past Due Spouse Number CS7OTHER CS Other Number CS8NMSN CS Natl Medical Support Notice Number CS9ARREARS CS Arrears Yes/No CS9SECFAM CS Second Family Yes/No CCPAPD CSPD FedDP Gross IRSTH Net STDP Excess Limit HH MJ MS S Page 13 of 44

14 DEDUCTION CODE SETUP Deduction codes must be created before Garnishment Manager can be used. Deduction codes used for child support orders, garnishments and related administrative fees must be setup with Sage HRMS with the following settings: Employee Calc. Method set to Flat Employer Calc. Method set to None Starts set to Date of Hire Prints Earning/Deduction on Check checked There are many ways to name your deduction codes. Any naming convention that works for you and that is within the constraints for Sage HRMS is acceptable to Garnishment Manager. For a deduction to be recognized as a Child Support or other Garnishment Deduction, the Sage HRMS deduction codes must be properly mapped to a one of the following Garnishment Manager type code: Child Support Garnishment used for State Levy, Creditor, Student Loan, Federal Agency, and IRS Levy Garnishment Admin Fee See Mapping to Sage HRMS under Garnishment Manager Setup. Page 14 of 44

15 If you are setting up Sage HRMS for the first time, you have the ability to define the naming convention for codes. Codes are sorted alphabetically in the user interface of Sage HRMS. We recommend you begin each Earning, Deduction, and Garnishment deduction code with the consistent letter, e.g, E, D, and G, respectively. This will naturally group these codes in the user interface of Sage HRMS and Garnishment Manager. Since a deduction code can only be added to an employee s record once, you may need to use a numbering convention as shown above to enable more than one of the same type of garnishment deduction for an employee, e.g. an employee with multiple child support orders. Here is one example of a naming convention for garnishment deduction codes: Code Description Type of Garnishment GCSG1 Child Support 1 Child Support GCSG2 Child Support 2 Child Support GSLG1 Student Loan Student Loan GIRSG1 IRS Tax Levy IRS Levy GCRG1 Creditor Garnishment Creditor GSTG1 State Tax Levy State Levy GFAG1 Federal Agency Garnishment Federal Agency Page 15 of 44

16 Garnishment Manager Installation SYSTEM REQUIREMENTS SUPPORTED VERSIONS OF SAGE HRMS Sage HRMS 2012 or higher Sage Abra HRMS v10.1 WORK STATION REQUIREMENTS Processor Intel Pentium III or compatible 1.3 (GHz) or higher Operating System Windows XP Windows Vista Windows 7 RAM 1 GB or higher Monitor SVGA 1024 x 768 resolution or higher, using a High Color (16 bit) display setting or higher Network Ethernet Connection 100MB or higher. Page 16 of 44

17 INSTALLING GARNISHMENT MANAGER Like the Sage HRMS Client, Garnishment Manager for Sage HRMS needs to be loaded on each payroll users desktop used to access Sage HRMS. Before starting, MAKE SURE YOU HAVE ADMINISTRATOR PERMISSIONS on the computer you are installing the software on. Windows Vista, Windows 7 and Windows 2008 and later require higher levels permissions to properly install any desktop software. Garnishment Manager will load the application under C:\Program Files\Delphia Consulting\Sage HRMS Garnishment Manager or C:\Program Files(x86)\Delphia Consulting\ if you are using a 64-bit OS. 1. Copy the installation file to the server on which you want to install the software. 2. Double click the file to install. 3. Welcome Screen 4. Click Next. Page 17 of 44

18 5. Select the I accept checkbox and click Next. 6. Installation Folder By default MOSS 2007 will be installed to C:\Program Files (x86)\delphia Consulting\MOSS If a different folder is required click the Options button and enter a new Install Location. It is recommended that you use the default install location. Click Next. Page 18 of 44

19 7. Click Install to begin the installation. The setup requires administrative rights to install. The Verified publisher should be Delphia Consulting, LLC. Click Yes to allow installation to continue. Click Yes to allow installation to continue. Page 19 of 44

20 8. A progress meter will be displayed to show the installation progess. 9. Click Finish to complete the installation. Garnishment Manager will also be added to the Start Menu: Page 20 of 44

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22 Garnishment Manager Setup SYSTEM SETUP From the client workstation where Garnishment Manager was installed, select Start > Delphia Consulting> Garnishment Manager Setup and navigate to the System Setup tab. ESTABLISHING THE DATABASE CONNECTION Enter the Data Server where the Sage HRMS SQL database resides. Enter the name of the HRMS database, typically, SageHRMS_Live. Enter the user name (typically the dbo or sa) and related password. Then click, Verify Database. Before proceeding you must establish a valid connection. If the information is verified, the system will display Connection Successful! To the right of the Verify Database button. Click Save. Page 22 of 44

23 SETUP Enter the IP address of and STMP or mail server. This is necessary to send the registration request in the next step. Click Save. REGISTERING GARNISHMENT MANAGER Click Register System. If the is configured properly, this will send a registration to Delphia Consulting: You will receive a reply with the License Key. Copy the License Key provided in the reply into your clipboard (Ctrl-C). Click the Past License Key button on the System Setup tab of Garnishment Manager. Click Save. Page 23 of 44

24 MAPPING TO SAGE HRMS Garnishment Manager will calculate the various disposable incomes according to federal and state regulations but needs to have each earnings, taxes and deduction code from Sage HRMS mapped to appropriate type code in Garnishment Manager. Please see your consultant or call support if you need help. Mapping Garnishment Manager to Sage HRMS must be completed for each payroll database. Navigate to the Mapping tab and click on the Databases sub tab. Enter the Company Code defined in Sage HRMS and SQL payroll database name for each payroll company that will use Garnishment Manager. Click the green plus icon to add an additional database. Click Save. Navigate to the Disposable Income sub tab. Pick the first company from the Company pick list and click Refresh. Page 24 of 44

25 Clicking Refresh will read Sage HRMS payroll and populate the Income, Taxes, and Deductions tabs with the earning, tax and deduction codes found in the selected payroll company. Garnishment Manager will use advanced logic to automatically map as many codes as it can. Any that did not automatically get mapped must be manually mapped by you. All earning, tax and deduction codes must be mapped. Please call support or see your consultant if you need help. This is a critical step and must be completed properly. To map a code, click on the magnifying glass icon. Page 25 of 44

26 Map all income, tax, and deduction codes. Click Save. Repeat the section for each Company. If you add a new earning, tax or deduction code to Sage HRMS, you will need to repeat this process. Page 26 of 44

27 Employee Garnishment Deduction Setup While Sage HRMS has certain abilities to track and remit garnishments using data populated in the Garnishments tab of the employee s Employee Payroll Pay screen, Garnishment Manager for Sage HRMS only relies on data entered on the Optional Fields and Work Location tabs. The following data must be populated in order for Garnishment Manager to function properly: 1. Enter the work state (if using Sage HRMS v10.1, you must set the work state using the Other tab since the Work Location tab was introduced with Sage HRMS 2012). 2. Add a deduction record for each garnishment order received 3. Enter the date of the order and the amount of the garnishment order. 4. Add/update Lifetime Maximum and Lifetime Accumulation, if any. 5. Populate the required Optional Fields. WORK STATE Garnishment is governed by the state law where the employee works, not where the court order was issued. Garnishment laws vary significantly by state. Garnishment Manager uses the State populated on each employees Employee Work Location tab to know which state law to apply. Page 27 of 44

28 Note: If you are using Sage Abra HRMS v10.1, then you must use the Other tab to indicate the work state using the State/Prov field. ADDING DEDUCTION RECORDS From the employee s Employee Payroll screen in Sage HRMS, add a deduction for each garnishment order received by the employee. Please refer to your Sage HRMS reference material for general help on adding a deduction for an employee. This manual only instructs you as to what is necessary for Garnishment Manager to function properly. HINT: Once you have added the code, press the F9 key while that row is highlighted to open an edit window for the deduction. Page 28 of 44

29 GARNISHMENT DATE AND ORDERED AMOUNT Garnishment manager always processes child support orders before all other garnishments. Other garnishments are evaluated in ascending order using the date entered into the Starts date field on each deduction. This is usually the date of the order; however there are potential circumstances where the Starts date will need to be modified by the user to properly prioritize the order in which the garnishment orders are evaluated by Garnishment Manager. Please consult the actual garnishment order, applicable state and federal law or your legal counsel for further clarification as to the proper sequence in which garnishment orders should be processed. Starts - Enter the appropriate date in the Starts field, usually the date of the garnishment order. Rate/Amt/Pct This is ignored by Garnishment Manager. We recommend you leave it set to zero to avoid confusion. Lifetime Maximum Enter the total amount of the order for any garnishment other than child support orders. Most nonchild support garnishment orders will indicate a total amount of the debt that should be garnished in one or more checks as limited by the applicable federal and state laws and regulations. Enter to total amount of the order here. Lifetime Accumulation Sage Abra will automatically populate this field as payrolls are processed. However, when deploying Garnishment Manager you will need to enter the amount representing the life to date amount that was previously withheld for the garnishment. The lifetime maximum less the lifetime accumulation figures on the Min/Max tab take precedence over any amount calculated by Garnishment Manager or by direct entry of a deduction override in a time card record. Page 29 of 44

30 GARNISHMENT OPTIONAL FIELDS Hint: You can access option fields for a particular deduction record in three ways from the Pay tab of the Employee Payroll Screen. Start by highlighting the desired deduction record with your mouse as shown below: You can directly access the Optional Fields by either double clicking the highlighted cell under the Use Optional Fields column or you can click the blue pyramid shaped icon in the Use Optional Fields column header (both circled in blue above) Additionally, you can press the F9 key while the desired deduction is highlighted. From there you can click the blue pyramid shaped icon to launch the Optional Fields screen. Page 30 of 44

31 If you are adding a new deduction for a child support order or other garnishment, the Sage HRMS will add all of the Optional Fields used by Garnishment Manager. The table below indicates which optional fields are available by each garnishment type: Optional Field Child State Tax Student Federal IRS Creditor Support Levy Loan Agency Levy 1GARNTYPE Required Required Required Required Required Required 2ORDPERCENT X X X X 3OVRDDPBASIS X X 4OVRDERULE X X 5FILINGSTAT 6NOEXEMPT 7BLIND65EXP 8NODEPENDTS X X 9ADMINFEE X X X X X X CS1CUR CS2PAST CS3CURMED CS4PASTMED CS5SPOUSE CS6PASTSPOUS CS7OTHER CS8NMSN CS9ARREARS CS9SECFAM X X X X X X X X X X X X X Page 31 of 44

32 CHILD SUPPORT DEDUCTION SETUP The following Optional Fields are used by a Child Support garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes ChildSupport 9ADMINFEE Admin Fee Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee, subject to built in rules. CS1CUR CS Current This is a PER MONTH amount entered from the order. CS2PAST CS Past Due This is a PER MONTH amount entered from the order. CS3CURMED CS Current Medical This is a PER MONTH amount entered from the order. CS4PASTMED CS Past Due Medical This is a PER MONTH amount entered from the order. CS5SPOUSE CS Spouse This is a PER MONTH amount entered from the order. CS6PASTSPOUS CS Past Due Spouse This is a PER MONTH amount entered from the order. CS7OTHER CS Other This is a PER MONTH amount entered from the order. CS8NMSN CS9ARREARS CS9SECFAM CS Natl Medical Support Notice CS Arrears CS Second Family This is a PER MONTH amount entered from the NMSN notice requiring an employee s child be enrolled in medical insurance coverage provided by the employer. This amount is not remitted to the custodial spouse but is considered in calculating limits. Enter Yes or No based on the order which will note if noncustodial parent is greater than 12 weeks past due allowing withholding limits to increase by 5%. It is the responsibility of the employee to inform you if they are supporting a second family, e.g. there are two or more orders for different former spouses, or the employee has qualifying dependents of their own. When entering a child support order, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The Optional Fields screen for a typical child support deduction will look something like this: Page 32 of 44

33 STATE TAX LEVY DEDUCTION SETUP The following Optional Fields are used by a State Tax Levy garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes STLevy 2ORDPERCENT Ordered Percent 3OVRDDPBASIS Override DP Basis Optional Optional 4OVRDERULE Override Rule Optional 8NODEPENDTS No of Dependents 9ADMINFEE Admin Fee Optional Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee AND, unlike child support, the amount of the calculated garnishment will be reduced by this amount, subject to built in rules. When entering a State Tax Levy, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The following four optional fields are typically not required and may be removed from the employee s Optional Fields Screen for this garnishment deduction: Ordered Percent - use this only if the order specifies a percent of disposable pay is to be withheld. By default, it will use the disposable pay for State Tax Levy s as defined by the applicable state. Override DP Basis This only applies when used in conjunction with Ordered Percent. Use this field to change the definition of disposable pay to which the order percent is to apply. For example, if the order specifies to withhold 10% for gross pay, then you would select Gross in this field. Override Rule This only applies when used in conjunction with Ordered Percent. Use this field to change the default setting with is Limit. For example, if the order indicated to withhold every dollar over or in excess of 10% of gross pay, then you would select Excess in this field. No of Dependents Some states (e.g. KY) provide for additional exemptions based on the number of dependents. The Optional Fields screen for a typical state levy garnishment deduction will look something like this: Page 33 of 44

34 CREDITOR DEDUCTION SETUP The following Optional Fields are used by a Creditor garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes Creditor 2ORDPERCENT Ordered Percent 3OVRDDPBASIS Override DP Basis Optional Optional 4OVRDERULE Override Rule Optional 8NODEPENDTS No of Dependents 9ADMINFEE Admin Fee Optional Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee AND, unlike child support, the amount of the calculated garnishment will be reduced by this amount, subject to built in rules. When entering a Creditor garnishment, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The following four optional fields are typically not required and may be removed from the employee s Optional Fields Screen for this garnishment deduction: Ordered Percent - use this only if the order specifies a percent of disposable pay is to be withheld. By default, it will use the disposable pay for creditor garnishments as defined by the applicable state. Override DP Basis This only applies when used in conjunction with Ordered Percent. Use this field to change the definition of disposable pay to which the order percent is to apply. For example, if the order specifies to withhold 10% for gross pay, then you would select Gross in this field. Override Rule This only applies when used in conjunction with Ordered Percent. Use this field to change the default setting with is Limit. For example, if the order indicated to withhold every dollar over or in excess of 10% of gross pay, then you would select Excess in this field. No of Dependents Some states (e.g. ND, SD & TN) provide for additional exemptions based on the number of dependents. The Optional Fields screen for a typical creditor garnishment deduction will look something like this: Federal law for ordinary creditor garnishments (not support, bankruptcy or any state or federal tax) weekly amount may not exceed the lesser of two figures: 25% of the employee s disposable earnings or the amount by which an employee s disposable earnings are greater than 30 times the federal minimum wage currently at $7.25. State laws may differ from the federal law. Page 34 of 44

35 STUDENT LOAN DEDUCTION SETUP The following Optional Fields are used by a Student Loan garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes StudLoan 2ORDPERCENT Ordered Percent 9ADMINFEE Admin Fee Enter the amount on the order, typically not more that 15% Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee AND, unlike child support, the amount of the calculated garnishment will be reduced by this amount, subject to built in rules. When entering a Student Loan garnishment, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The Optional Fields screen for a typical creditor garnishment deduction will look something like this: The Higher Education Act authorizes the Dept. of Education s guaranty agencies to garnish up to 10% of the disposable earnings to repay defaulted federal student loans. Such withholding is also subject to the provisions of the federal wage garnishment law, but not state garnishment laws. Unless the total of all garnishments exceeds 25% of disposable earnings, questions regarding such garnishments should be referred to the agency initiating the withholding action Student loans can be obtained through the federal government, state government, private loans and guarantor agencies. Garnishment Manager only follows federal rules for student loans. Check the garnishment order as criteria for calculating disposable income can vary by state agencies. It is possible in certain circumstances, to process a state agency student loan using the Creditor Garn Type. Page 35 of 44

36 FEDERAL AGENCY DEDUCTION SETUP The following Optional Fields are used by a Federal Agency garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes FedAgency 2ORDPERCENT Ordered Percent 9ADMINFEE Admin Fee Enter the amount on the order Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee AND, unlike child support, the amount of the calculated garnishment will be reduced by this amount, subject to built in rules. When entering a Federal Agency garnishment, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The Optional Fields screen for a typical creditor garnishment deduction will look something like this: The Debt Collections Improvement Act authorizes federal agencies or collection agencies under contract with them to garnish 15% of disposable earnings to repay defaulted debts owed the US government. Use the federal agency garnishment type for non-tax debts owed to federal agencies such as food stamp fraud or overpayments or lost military property. Page 36 of 44

37 IRS LEVY DEDUCTION SETUP The following Optional Fields are used by an IRS Levy garnishment: Optional Field Description Required Comment 1GARNTYPE Garnishment Type Yes IRSLevy 5FILINGSTAT Filing Status Yes Please refer IRS publication 1494 for the definition 6NOEXEMPT No of Exemptions Yes Please refer IRS publication 1494 for the definition 7BLIND65EXP 65/Blind Exemptions Yes Please refer IRS publication 1494 for the definition 9ADMINFEE Admin Fee Enter a flat dollar amount. Garnishment Manager will add this amount to the deduction code established for Garnishment Admin Fee AND, unlike child support, the amount of the calculated garnishment will be reduced by this amount, subject to built in rules. When entering an IRS Levy garnishment, all other fields not listed in the table above may be removed from the employee s Optional Fields Screen for this garnishment deduction. The Optional Fields screen for a typical creditor garnishment deduction will look something like this: Page 37 of 44

38 Payroll Processing with Garnishment Manager Before running Garnishment Manager to calculate, each garnishment deduction must be properly configured in Sage HRMS. Use the checklist below: 1. If you created a new garnishment deduction did you set it up as a flat dollar deduction? 2. Have you assigned the deduction to the employee and: a. Properly set the start date b. Entered the Lifetime Maximum, if applicable c. Updated the State on the Work State tab (or Other tab if using Sage Abra HRMS v10.1) d. Added and updated the appropriate Optional Fields based on the type of garnishment? To process a payroll with Garnishment Manager, begin the payroll process by performing all tasks up to and including running Calculate Payroll. Page 38 of 44

39 CALCULATING GARNISHMENTS If you have reached the point where you have run Calculate Payroll in Sage HRMS and, but for the fact that garnishments deductions have not been calculated, you are ready to print checks, then you are ready to run Calculate in Garnishment Manager. Open Garnishment Manager by selecting Start > Delphia Consulting> Garnishment Manager Select the Company Code to process and enter the period end date for that payroll and click the Calculate button. The system will display how many employees it found with garnishments and list each employee with summary level results. Click the Print button to view the Garnishment Report for each employee. Page 39 of 44