A wage garnishment is a court order for an employer to withhold a certain amount of an employee's wages as repayment for debt, and is fundamentally different from other after-tax payroll deductions.

Refer to the instructions for your platform to set up a wage garnishment order in your payroll software:

To add a garnishment that is deducted from an employee's disposable income:

Intuit Online Payroll/Intuit Online Payroll for Accountants

  1. Go to Employees > Employees name.
  2. In the Deductions & Contributions section, click Edit.
  3. Click Add a Garnishment.
  4. Select a garnishment type, then enter the required information.
    User-added image
    Field What to enter
    Description
    This description appears on reports and pay stubs. It's a good idea to enter both the employee and agency names so that you can easily recognize which agency is owed the garnishment.
    Amount Requested Applies to Child/Spousal Support orders only. If allowed by the order, include any administrative fee you add. This is the amount that will be deducted per paycheck. Note that this amount may be lessened once disposible earnings is calculated.
    Maximum % of disposable income Applies to Child/Spousal Support orders only. The corresponding language in the order is "The total withheld amount, including your fee, cannot exceed __ % of the employee's/obligor's aggregate disposable weekly earnings.
    Amount Exempt Applies to Federal Tax Levy orders only. Enter the amount that appears in the table included in the order.
    Total Amount Owed Applies to Other Garnishment type only. Enter the total amount owed from the order. The garnishment will automatically stop when the employee's total amount garnished reaches this amount. (Note that the garnishment can extend across multiple years.)
    Amount per period
    Applies to Other Garnishment type only. Select whether the amount to be garnished is a percentage of gross pay or a fixed dollar amount. Enter the amount as shown on the order.
    Alternate Garnishment Cap Applies to Other Garnishment type only. Look for a withholding limit or cap on the order. This cap must include any administrative fee you add. The total amount withheld for the garnishment cannot exceed this cap.
  5. Click Save > OK.

QuickBooks Online Payroll/QuickBooks Online Payroll Full Service

  1. Select Workers from the left menu > Employees.
  2. Select employee's name
  3. Select edit (pencil) icon beside Pay.
  4. Click edit (pencil) icon to add a deduction.User-added image
  5. On the dropdown, select Garnishment and Garnishment Type.
  6. Enter the description, amount requested and the maximum percent of disposable income.
    Field What to enter
    Description
    This description appears on reports and pay stubs. It's a good idea to enter both the employee and agency names so that you can easily recognize which agency is owed the garnishment.
    Amount Requested Applies to Child/Spousal Support orders only. If allowed by the order, include any administrative fee you add. This is the amount that will be deducted per paycheck. Note that this amount may be lessened once disposible earnings is calculated.
    Maximum % of disposable income Applies to Child/Spousal Support orders only. The corresponding language in the order is "The total withheld amount, including your fee, cannot exceed __ % of the employee's/obligor's aggregate disposable weekly earnings.
    Amount Exempt Applies to Federal Tax Levy orders only. Enter the amount that appears in the table included in the order.
    Total Amount Owed Applies to Other Garnishment type only. Enter the total amount owed from the order. The garnishment will automatically stop when the employee's total amount garnished reaches this amount. (Note that the garnishment can extend across multiple years.)
    Amount per period
    Applies to Other Garnishment type only. Select whether the amount to be garnished is a percentage of gross pay or a fixed dollar amount. Enter the amount as shown on the order.
    Alternate Garnishment Cap Applies to Other Garnishment type only. Look for a withholding limit or cap on the order. This cap must include any administrative fee you add. The total amount withheld for the garnishment cannot exceed this cap.
  7. Click OK.

Note:

  • If the garnishment varies per paycheck, you can set the amount to zero. You can update the garnishment amount by editing the paycheck once you run payroll.
  • You can only add two garnishments per employee. If the employee has three or more garnishments, the rest can be added as other after tax deduction. For assistance, contact payroll support.

Related Articles

About complying with wage garnishment orders
End a garnishment