Garnishments

Overview

The Garnishments screen displays all garnishment transactions from the beginning of the year to the present. ProPay uses this file to track which garnishments have been paid and which are due, then automatically generates checks to agencies when payments are required.

Understanding the Garnishments File

Name

Lists either:

Employee names - For deduction entries
Agency names - For payment entries

Amount

Amount values indicate transaction type:

Positive amounts - Garnishments deducted from employee paychecks
Negative amounts - Payments made to agencies

Payee

Lists the agency (payee) name that will receive the garnishment payment.

Type

Transaction type indicator:

D - Deduction (amount withheld from employee)
P - Payment (amount paid to agency)

PayFreq (pay frequency)

Indicates how often payments must be made to the agency:

P - Per pay date (every time you run payroll)
M - Monthly (only on the last pay date of each month)

How Garnishment Checks Are Calculated

Each time you print employee checks, ProPay evaluates your garnishment liability using this process:

Sums all transactions by agency

Adds all positive amounts (deductions)
Adds all negative amounts (payments)

Determines balance due

If deductions exceed payments, there is a balance due

Evaluates pay frequency

Pay Date (P): Generates a payment immediately
Monthly (M): Generates a payment only on the last pay date of the month

Creates agency checks

Issues checks for all balances due based on pay frequency rules

Combining Multiple Garnishments Into One Check

ProPay automatically combines garnishments into a single check when:

The first 20 characters of the payee name match exactly
The entire payee address line matches exactly

This feature is useful for combining multiple deductions for the same agency, such as:

Union dues
401(k) contributions
Medical insurance
Dental insurance
Vision insurance

When multiple garnishments are combined, ProPay automatically generates an agency report as part of the standard report package. This report provides a breakdown of all payments included in the check so the recipient can properly credit each employee's account.

The agency report should accompany the check when mailed.

Modifying the Garnishments File

CAUTION: Exercise extreme caution when deleting or changing entries in the garnishments file. This file is critical for tracking garnishment liabilities and payment history. Only modify entries when absolutely necessary.

When to modify entries

You may need to modify the garnishments file to:

Correct an erroneous entry
Delete a duplicate transaction
Re-print a garnishment check (see below)

Making changes safely

Before deleting or modifying any entry:

Document the original entry details
Verify that the change is necessary
Understand how the change will affect liability calculations
Make the change and verify the new balance is correct

Re-printing Garnishment Checks

If you need to re-print or regenerate a check payable to an agency:

Delete the payment entry

Locate the payment (indicated by a negative amount) in the garnishments file and delete it. This restores the balance due to the agency.

Print checks for selected employees

Go to Paychecks > Print Checks and select Selected employees.

Choose the original pay date

Use the same pay date as the payment you deleted.

Select the affected employees

Choose the employee(s) that correspond with the garnishment check you need to re-print.

Generate the agency check

Click Continue. When ProPay asks if you want to print tax checks, answer YES.

ProPay regenerates the agency check based on the restored balance due.