Pay Garnishment in QuickBooks Online is a payroll deduction from the employee. Managing employee garnishment is a difficult task and a critical payroll responsibility for many businesses. QuickBooks payroll makes every task easier, besides paying garnishments, whether it is child support garnishment or a tax, or a court-ordered wage. With the help of QB online, you can automate tasks and track payments.
In this blog, we elaborate on what garnishment is in QBO, how to pay garnishment in QuickBooks Online, steps to set up, and tips for managing garnishments.
What is Garnishment in QuickBooks Online?
Garnishment in QBO is a mandatory deduction of money that is automatically deducted from someone’s paycheck for paying someone. The employer can take the amount and send it directly to the person who owes that money. Garnishment money deduction is done for child support or a court fine, or another purpose. You can pay garnishments in QuickBooks online and save your time with an automated process. QuickBooks Online Payroll helps you set up the garnishment, an automatic deduction from each payroll run, and track it as a liability, record and pay the amount owed to the agency.
Types of Garnishment in QuickBooks Online?
Here are the types of garnishment in QuickBooks Online.
- Child Support Garnishments
- Creditor Garnishments (Debt Collection)
- Federal Tax Levies
- State Tax Levies
- Student Loan Garnishments
- Bankruptcy Garnishments
- Veterans Affairs (VA) Garnishments
- Miscellaneous Legal Garnishments
Steps to Set Up Garnishment in QuickBooks Online
Before pay garnishment in QuickBooks Online, you must set up an employee’s profile.
- Login to the QuickBooks online
- Go to the payroll.
- Then click on employees and select the employee.
- Click on Add a deduction.
- Choose the type of garnishment, such as Child Support, Levy, Creditor, etc.
- Enter the credentials of the agency and receipts.
- Fill in the percentage and amount to withhold.
- Click on changes.
After this setup, QuickBooks will now automatically withhold the amount on every payroll run.
Steps to Pay Garnishments in QuickBooks Online
To pay garnishments in QuickBooks Online, follow these steps:
- First of all, go to the payroll and then run payroll, and complete the payroll process.
- After that, go to the payroll tax center and click on click on tax on the left to make the payments.
- Then select pay taxes and specific garnishment liabilities to pay.
- Enter the information, such as payment date and payment method.
- Click on Pay to record the payment in QuickBooks.
- After that, send the payment manually to the agency.
- Verify the information, such as payroll, taxes, and tax payment history.
Management Tips for Garnishments in QuickBooks Online
QuickBooks Online can automate tasks for you, but it is good to manage everything properly and run reports regularly for accuracy. Here are some tips that helps you.
- Always review the garnishment limits, like how much money can be taken from an employee’s paycheck to send for child support or debt.
- QuickBooks will handle that if an employee has more than one garnishment, such as child support and a creditor garnishment. You don’t have to worry about anything; it can prioritize things.
- Keep the information updated if the garnishment amount and order change. To ensure accuracy to updating the employee profile in QuickBooks.
- Run payroll reports regularly on a daily basis to track all the garnishment deductions. If you run payroll reports and the contributions report in QuickBooks. This will help you to monitor the deductions.
Conclusion
We have explained the steps that how to pay garnishment in QuickBooks Online in the above information. Before pay garnishments in QuickBooks Online, ensure that everything is set up properly. The system automatically withholds the correct amount and helps you by providing tools to pay and track liabilities. If you have any issues you can connect with our QuickBooks Payroll Support team.