Issue/Symptom/Question

We need to set up a garnishment based on X% of disposable income (defined as gross wages less taxes and allowance for Medical Insurance Premiums). 

Environment

Master Deduction
Payroll> Setup> Deductions, Reimbursements, and Other Compensation> Master Deductions Screen

Voluntary Deductions
Payroll> Employees> Employee Payroll Information 

Resolution/Fix/Answer

A garnishment that is levied on "Disposable" income can be set up in Penta through the use of a Calc Base 4 or 7 Deduction. Please confirm the below steps produce the desired result in TEST before changing anything in Prod.

Step 1: Create the Garnishment Deduction

• Navigate to the Master Deduction Screen
• Create a new deduction with a Calc Base of 4 OR 7
  • Calc Base 4 "Percent of Net" includes all reimbursements in the calculation of "Net Income"
  • Calc Base 7 "Percent of Disposable Net" does not include reimbursements in the calculation of "Net Income" 
• In the "Percent" field enter the % of Net Income you want this Garnishment to take
• Select  the "Disposable Income" button in the bottom left portion of the screen to access the "Disposable Net Income Definition pop-up"
  In the "Disposable Net Income Definition Pop-up" enter:
  • The Ids of the deductions you want to reduce Net Income by in arriving at the "Disposable Net Income"
  • The Ids of the fringes you want to reduce Net Income by in arriving at the "Disposable Net Income"
  For Example: If you want to define Disposable Net Income as Gross Wages less taxes and Medical Insurance Premiums: Enter the Deduction Id representing Medical Insurance Payments in this Pop-up

Step 2: Assign the deduction to the employee

• Navigate to the Voluntary Deduction screen
• Assign the deduction created in Step 1 to the appropriate employee(s)
• In the "Gross to Net Priority" field enter a value of 1

Step 3: Assign the Gross to Net Priority for all other "After Tax" Deductions

• Remain in the Voluntary Deduction Screen
• Execute an open Query for all Voluntary Assignments to the employee(s) in question
• Take note of the tax-ability of all Deduction assignments (The taxability of a voluntarily assigned deduction can be seen by querying the deduction in the Deduction Master)
  • IF a voluntary deduction was defined in Step 1 as "Disposable Net Income" do not alter the voluntary deduction.
  • IF a voluntary deduction is set up as Before tax for FIT/FICA/MEDI/SIT do not alter the voluntary deduction.
  • IF a voluntary deduction is set up as After tax for FIT/FICA/MEDI/SIT enter a value > 1 in the "Gross to Net Priority" screen.