How to Set up, Create and Pay Child Support Garnishment in QuickBooks

In QuickBooks, creating and paying child support garnishment is an important thing. Most users get confused about this. So, our QuickBooks customer service team has tried to discuss key facts for support garnishments. You can also get help from a certified Intuit expert on this topic if you still have any queries after reading this post.

Two common types of garnishments are child support orders and government tax levies. Child Support is a post-tax deduction from the employee paycheck. In a Child Support Deduction, it is possible that you will have more than one employee. It is not important to have employee special liability accounts on your Chart of Accounts in child support. In this, It is good to have employee special deduction items in your Payroll Item list.

Points to Remember about Child Support Garnishment

  • Child support garnishment is a tax amount which is deducted from the employee’s bank check.
  • It is possible for a one employee to have more than one support garnishments.
  • The Payroll item list also includes the deduction done for the employees.
  • For employer, it is not mandatory to include the liabilities of each employees in the chart of accounts.

You may also like: Viewing and Sending Reminder for Overdue QuickBooks Invoice

Steps to create a child support garnishment

  • First, go to the List menu and choose the Payroll Item option.
  • Click on the Payroll Item button and choose New.
  • Now as per your requirement, you need to choose either EZ Setup or Customer Setup and then click on the Next.
  • After that, select the Deduction option and then click on the Next.
  • Then, you have to give a name to this payroll deduction, for example, you can choose Child Support Smith for the employee Joe Smith and then click on the Next.
  • Next, you need to add the name of the agency to whom you are going to pay the liabilities. If you are not aware of the agency then you can add that later also.
    Create a Child Support Garnishment
  • Then, click on the Next.
  • After that, click on the Tax Tracking Type drop-down menu and here select the None option and then click on Next.
  • Next, the Default Taxes window will pop-up on the screen. Here, click on the Next button.
  • Remember, in the Net vs Gross window, you have to select the ‘Net to calculate amount after taxes’ option.
  • By doing this, the calculation of deduction will be made before taxes.
  • But, if opt for the Gross option, then you need to enter the default rate and limit.
  • You may need to add percentages and decimals also.
  • Once all the fields are filled correctly, you can click on the Finish.
Child support garnishment in QuickBooks
Child support garnishment in QuickBooks

Adding the Child Support Garnishment to the Employees Record

  • First, click on the Employees drop-down menu and then select the Employee center.
  • Then, find the name of the employee for whom you want to set up support garnishment and then double-click on its name.
  • After that, select the Payroll info option.
  • Then, select the item name field and then choose the garnishment item option.
  • Next, you need to select the Additions, Deductions, and company contribution option.
  • In the Amount field, you need to enter the garnishment amount.

Set up a Liability Payment Schedule

  • First, from the top menu bar, click on the Employees option.
  • Next, in the drop-down menu, select the Payroll Taxes and Liabilities option.
  • Then, you need to select the Edit Payment Dues/Methods option.
  • After that, the Payroll Setup window will show on your screen.
  • Here, you need to click on the ‘Review your scheduled tax payment lists’ option and then click on the Continue button.
  • Click on Continue as soon as the message ‘add or edit scheduled payments for benefits and other payments’ appear pop-up on the screen.
  • Then, Child support and other wage garnishments window, click on the Edit option.
  • In the next window, select the payment frequency and then shut down the Payroll Setup window to finish the process.

The detailed amount will be cut from the employee’s paycheck and sent to the Liability account and will be shown on your Chart of Accounts in every week when you run payroll.

Also Read: Setup chart of accounts in QuickBooks.

You will go to the Payroll Tab of the Employee Center and select it from the Pay Scheduled Liabilities section to generate the check to be sent to the Agency collecting the money.

The Bottom Line

Now, you can create and pay child support garnishment in QuickBooks easily. For more help and support related to Payroll, you can get in touch with our professional experts on +1-855-441-4417.

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