Overview

This article provides a step-by-step guide on setting up wage garnishments in Sage Intacct's construction payroll module, as explained in the video tutorial by Mike Baio from Bangert. The full tutorial can be viewed here.

Setting Up a Garnishment

1. Scenario Overview: Garnishment for an employee (e.g., Robert Jones) is 15% of disposable income, only applicable when available funds exceed $220. This setup is common for garnishments.

2. Defining Available Funds: Gross wages minus applicable taxes, considering any existing deductions like child support.

3. Navigating to Payroll Setup: In Sage Intacct, go to payroll setup and then system pay modifiers.

4. Creating a New Pay Modifier: Create a new modifier for the garnishment (GARN) with an effective date, set as a deduction and amount-based.

5. Setting Basis Details:

• Choose the contribution type (e.g., time card salary earnings).

• Define available funds as disposable income.

• Set a max percentage of available funds (15% in this example).

• Specify available funds in excess of $220.

6. Defining Available Funds Calculation:

• Add time card salary earnings (gross wages).

• Deduct employee taxes (e.g., Medicare, federal income tax).

• Consider child support deduction.

7. Adjusting for Child Support: Use the 'Adjusted By' column to account for child support before the garnishment.

8. Finalizing and Saving Setup: Review and save the setup. Ensure it aligns with the employee's tax and deduction details.

9. Updating Journal Entry Mappings: Add the new garnishment modifier to journal entry mappings, ensuring correct general ledger postings.

10. Setting Up in Employee File: Add the garnishment modifier to the employee's file, verifying effective dates and pre-filled information. Adjust if necessary for unique employee scenarios.

11. Testing the Setup: Process a payroll to test the garnishment calculation. Adjust employee's rate or hours if needed to see the garnishment effect.

Conclusion

Setting up wage garnishments in Sage Intacct's construction payroll is a flexible process that can accommodate various scenarios. The system allows for detailed customization in garnishment calculations without the need for complex formulas.

Source Video: Wage Garnishments in Sage Intacct Construction Payroll

Note: This article is a summarized version of the content presented in the linked video. For detailed instructions and visual guidance, refer to the video tutorial.