Wage garnishment

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graceumcaustx
Posts: 1
Joined: Tue Jul 27, 2010 8:18 pm
Location: Grace UMC - Austin, TX

Wage garnishment

Post 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?

JohnDMeyers
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Re: Wage garnishment

Post 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.
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