Child support orders and government tax levies are the two types of garnishments. Child support garnishment is all about the amount which is left after deducting taxes from the employee’s paycheck. An individual can have more than one child support deduction. In this blog, you will learn various facts about Child Support Garnishments and how to set up Child Support Garnishment in QuickBooks.
Further, we will demonstrate the steps of setting Up Child Support Garnishment in the Employee Record and how can you Setup a Liability Payment Schedule
Particulars of Child Support Garnishments
- It can be the tax amount deducted from the employee’s bank check.
- A single employee can possess multiple Child Support Deduction.
- Your Payroll Item list can include the deductions done of a specific employee.
- It is not compulsory to include the liability accounts of each employee in your Chart of Accountants.
How to Set Up Child Support in QuickBooks?
- First of all, navigate to the Lists menu and then click on Payroll Item
- Next step is to click on New.
- Now, you have to choose EZ Setup or Customer Setup according to your requirements.
- The next thing is to click on Next.
- You need to choose the Deduction option and then click on Next.
- After that, you must assign a name to the payroll deduction, for example, Child Support Smith for employee Bob Smith and then click on Next.
- Now, enter the name of the agency for the liability needs to be paid. If you are unaware of the agency name, then add it later.
- Then you should click on Next.
- You will see a Tax Tracking Type drop-down, click on it.
- You must choose the None option and then click on Next.
- A Default Taxes window will display on your screen, you need to click on Next.
- Make sure you select ‘Net to calculate amount after taxes’ from the Gross vs Net window.
- This will calculate the deduction made before taxes.
- If you select gross, then enter a Default Rate and Limit.
- Add percentage or decimal sign accordingly.
- Finally, you must click on Finish.
Setting Up Child Support Garnishment in the Employee Record
- The first step is to click on the Employees drop-down menu.
- After that, you should choose Employees Center
- Now, you need to make double-click on the Employees Name
- The next step is to click on the Payroll Info
- You will a blank area under the Item Name, click on it and then choose garnishment items.
- Then, you have to click on the Additions, Deductions & Company Contributions
- You need to enter the deducted amount in the Amount Field.
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Steps to Setup a Liability Payment Schedule
- Firstly, you need to click on Employees
- After that, you must click on Payroll Taxes and Liabilities.
- The next step is to Edit Payment Dues/ Methods.
- Once the payroll set up window is displayed on your screen, you have click on “review your scheduled tax payment lists”.
- After that, click on Continue.
- A message will be displayed: “add or edit scheduled payments for benefits and other payments”, you should click on Continue.
- Now, you will see the Child Support or other wage garnishments on another window.
- The next thing is to click on Edit.
- A new window will open, there you need to choose the payment frequency.
- Now, shut down the payroll setup window and click on the Finish
If you face any difficulty “setting up child support in QuickBooks” then let our experts know, call us at QuickBooks Error Help Phone Number. We have a team of highly experienced technicians who not only provide 24/7 support but also offer reliable solutions.
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