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Adjusting Federal Levy Garnishments

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US Federal Tax Levies allow the employee to keep normal deductions with the federal tax levy coming last.

 

EX BW employee $1200.00 gross

                             -200.00 taxes

                             -100.00 deductions

                              900.00 disposable net

 

With the 668W selection, the levy allows the employee to take home 730.77. This means the garnishment deduction is calculated at 900.00-730.77= 169.23.

 

Federal Levy rules do not allow the employee to increase the "deduction credit" by selecting more or higher deductions. So if the employee has a deduction he wants to add, the 169.23 does change and the employee takes home less than the 730.77.

 

Has anyone written a special rule in the garnishment module to calculate this? It would probably be a field on IT0195 the user would update as the employee's deductions increase over time if the employee adds additional "voluntary" deductions which were not in place when the Federal levy was received.

 

Thanks


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