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Wage garnishment
Posted: Tue Jul 27, 2010 8:23 pm
by graceumcaustx
We have an employee that has a wage garnishment. It is 15% of the after-tax income. I have setup an "other deduction" as an "after tax deduction" on maintain items description. When I add this deduction to the employees pay items, it is calculating on the gross amount not the after-tax amount.
What should I do differently?
Re: Wage garnishment
Posted: Tue Jul 27, 2010 8:48 pm
by JohnDMeyers
After-tax refers to the amount itself is subject to tax.
Pre-tax means that the amount itself is not subject to tax.
Neither is what you are looking for. I don't see what you are looking for as a choice.
The only possibility I see is if the other taxes and deductions are always the same percentage of the gross, then you can adjust your 15% down to 14.06% or something like that to compensate.