Setup Garnishment  

To set up a garnishment as a percentage of an employee's net pay, you will need to first create a new payroll category and then assign it to the employee. Follow the steps below: 

1. Setup > Payroll Settings > Payroll Categories. 
2. Click the "+" button to create a new payroll category. 
3. Select the type of deduction this garnishment is going to be, either a temporary deduction or a permanent deduction. 
4. Enter all the required fields ("Code" and "Name" to identify the new garnishment). 
5. Now, navigate to the (fx) Formula Tab on the top left of the page. 
6. In the formula area, add all the earnings and then multiply it by the amount of the deduction, for example: ('101 - Salary' + '102 - Hourly Wages' + '103 - Overtime 1.5') * 0.3 
   1. “0.3” refers to 30% of the gross earnings. This will be used only if the employees' deductions are calculated before taxes. 
   2. If you want this deduction to be based on your net pay after taxes go back to the “Details” tab and toggle the "Maximum" button, then enter a percentage. 
7. Click the “Save”’ icon. 
8. Navigate to “Assign Payroll Category." 
9. Select the deduction you want to create, then select the employee to whom you want to assign this deduction. (You can also assign it to a payroll group if needed.)