User Support Forum

I am PC 10.4
Revenue Canada has sent me a notice to garnish wages from an employee.
They told me to figure out the payroll as usual but this time, the employee only gets 70% of the net pay and Revenue Canada wants 30%

In payroll my item descriptions are set up as follows:
Income - Salary - enters as DB expenses/CR bank
Deduction - Employee paid Income Tax, CPP, & EI withholding's - enters as DB bank/ CR Liability
Liability - Church portion of CPP & EI - enters as DB expense/ CR Liability

After posting and printing the cheque for the employee,
I write one cheque to Revenue Canada (it includes Employee's income tax, CPP & EI as well as the the church portion of CPP & EI).
This cheque is posted in AP as CR bank DB income tax, CPP & EI Liability accounts.

When the employees chq is automatically printed in their name, it will record they got the full 100%.
I need the employees chq to only read 70% and another cheque to Revenue Canada for the remainder 30%.
Revenue Canada wants a separate cheque for the 30%. They do not want me to include it with my usual payroll monthly remittance

Can you please assist me with adding some item descriptions to make my nightmare go away.
Thank you

Carey wrote:I am PC 10.4
Revenue Canada has sent me a notice to garnish wages from an employee.
They told me to figure out the payroll as usual but this time, the employee only gets 70% of the net pay and Revenue Canada wants 30%

In payroll my item descriptions are set up as follows:
Income - Salary - enters as DB expenses/CR bank
Deduction - Employee paid Income Tax, CPP, & EI withholding's - enters as DB bank/ CR Liability
Liability - Church portion of CPP & EI - enters as DB expense/ CR Liability

After posting and printing the cheque for the employee,
I write one cheque to Revenue Canada (it includes Employee's income tax, CPP & EI as well as the the church portion of CPP & EI).
This cheque is posted in AP as CR bank DB income tax, CPP & EI Liability accounts.

When the employees chq is automatically printed in their name, it will record they got the full 100%.
I need the employees chq to only read 70% and another cheque to Revenue Canada for the remainder 30%.
Revenue Canada wants a separate cheque for the 30%. They do not want me to include it with my usual payroll monthly remittance

Can you please assist me with adding some item descriptions to make my nightmare go away.
Thank you

OK .. you ARE using Payroll, right?

Step 1
You need to create an Item Description with the title of GARNISHMENT, of type Other Deduction. You should create a separate liability account, and you may have to create a separate AP vendor if you use the Payroll Create AP Entries function. Since this will be a deduction on the NET, its an AFTER tax deduction.

Step 2
Go to the employee's record in the Maintain List of Employees, select the Pay Item tab, and click on the ADD button/icon. On the selection screen, select OTHER DEDUCTION from the pull down menu. Then select the item description you created in Step 1, and click NEXT.
On the next screen, select PERCENT from the pull down, and enter 30.00.

You're now setup to properly deduct, and keep the funds separate from the other taxes.

Ahh thanks - worked just great!