Garnishments come in two forms: child maintenance orders and government tax levies. After taxes, the sum left over is deducted from an employee’s payroll is what child support garnishment is all for. 

A person may have multiple child support deductions. In this blog, you’ll learn about child support garnishments, as well as how to set up Child Support Garnishment in QuickBooks.

We’ll also show you how to set up Child Support Garnishment in the Employee Record and build a Liability Payment Plan. Garnishments for Child Support: Specifics

  • That may be the amount of tax deducted from the employee’s salary.
  • A single employee may receive multiple Child Benefit Deductions.
  • The deductions made by a particular employee can be included in your Payroll Item list.
  • The liability accounts of each employee do not have to be included in your Chart of Accountants.

How to set up a child garnishment in QuickBooks

  • Select the Payroll Item List from the Lists menu.
  • Select New from the Payroll Item drop-down menu.
  • Click Next after selecting EZ Setup or Custom Setup. (Follow the onscreen directions for EZ Setup.)
  • Click Next after selecting the Deduction option.
  • Click Next after giving the payroll deduction a name, such as Child Support Smith for employee Bob Smith.
  • Enter the name of the agency that is responsible for the payment of the liability. If you don’t know the agency’s name right now, you can add it later.
  • Next should be selected.
  • Pick None from the Tax Tracking Type drop-down arrow unless your accountant tells you otherwise.
  • Next should be selected.
  • Select Next in the Default Taxes browser.
  • Make sure Neither is selected in the Calculate Based on Quantity window before clicking Next. Note: If you prefer Hours or Quantity, the garnish will not be measured correctly.
  • Choose Net in the Gross vs Net window to measure the balance after taxes. If you pick Gross, the deduction will be calculated before taxes.
  • Set a Default Rate and Set a Cap (if there is one).
  • Attach the percentage symbol if it’s a percentage.
  • If the sum is in dollars, add the decimal.
  • Finish by pressing the Finish button.

How to add child support in QuickBooks

  • To begin, go to the Lists menu and select Payroll Item from the drop-down menu.
  • The next move is to choose New.
  • Now you must choose between EZ Setup and Customer Setup, depending on your needs.
  • The next step is to choose Next.
  • Select Deduction from the drop-down menu and then press Next.
  • Following that, give the payroll deduction a name, such as Child Support Smith for employee Bob Smith, and then click Next.
  • Enter the name of the agency to which the debt must be charged now. If you don’t know the agency’s name, you can add it later.
  • Then press the Next button.
  • Select the Tax Tracking Form from the drop-down menu.
  • You must select None before moving on to the next step.
  • A Default Taxes window will appear on your computer, and you must click Next to proceed.
  • Make sure the Gross vs Net window is set to ‘Net to measure sum after taxes.’
  • This will decide the amount of money saved before taxes.
  • Enter a Default Rate and Limit if you want gross.
  • Add a percentage sign or a decimal sign as required.
  • Finally, you must press the Finish button.

Adding Child Support Garnishment to the Employee File

  • The first move is to choose Employees from the drop-down menu.
  • Following that, you should choose Employees Center.
  • You must now double-click on the Employees’ Name.
  • The next move is to choose Payroll Info from the drop-down menu.
  • Click on the blank area under the Object Name and then choose garnishment pieces.
  • Then choose Additions, Deductions, and Company Contributions from the drop-down menu.
  • In the Sum Area, you must enter the amount that has been deducted.

How to create a Liability Payment Plan

  • To begin, select Employees from the drop-down menu.
  • Then pick Payroll Taxes and Liabilities from the drop-down menu.
  • Edit Payment Dues/ Methods is the next step.
  • When the payroll setup window appears on your computer, select “check your scheduled tax payment lists” from the drop-down menu.
  • Then press the Continue button.
  •  You can press after seeing the message “add or edit scheduled payments for benefits and other payments.”
  • Child Support or other income garnishments will now appear in a new window.
  • The next move is to pick Edit.
  • You’ll be taken to a new window where you can choose the payment frequency.

To summarise, QuickBooks Desktop software helps you manage the books and accounts of a particular organisation, and all strata of bookkeepers and accountants widely regard the software. This blog’s whole idea is to help you understand child support and garnishments that you might need to add to your QuickBooks software. I hope this blog helps you understand the importance of child support and aspects related to the same. 

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