This article provides step-by-step instructions for adding various employee deductions—such as child support, creditor garnishments, state and federal levies—using the Deduction Wizard, including required fields, options for administrative fees, priority order of deductions, and special notes about maximum overrides and FIPS code entry.
How To Add A Deduction To An Employee Using The Involuntary Deduction Wizard
Setting Up A Child Support Deduction
Setting Up A State Levy Deduction
Setting Up A Creditor Garnishment Deduction
Setting Up A Federal Levy Deduction
Please note: The Involuntary Deduction Wizard will not calculate correctly if the maximum is overridden.
If you need to override the maximum, please reach out to your support team member to have the deduction added.
How To Add A Deduction To An Employee Using The Involuntary Deduction Wizard:
- Click Menu > Team > My Team > Employee Information.
-
Select the Employee Information
icon next to the employee that needs the deduction to be added.
- Locate the Deductions widget - this is often on the 'Payroll' tab, but can be located elsewhere if your Employee Information layout has been customized.
-
In the Deductions widget, click the Actions icon
on the right to access the 'Involuntary Deduction Wizard'.
Setting Up A Child Support Deduction
Please note: Screenshots of withholding order are below instructions to match settings
-
Deduction Type: Choose type or order.
- Available Options: Bankruptcy, Child Support, Creditor Garnishment, Federal Levy, Federal Levy, Federal Student Loan, State Levy, and State Student Loan.
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In this example selecting 'Child Support' from the dropdown, then click the Next
button.
- Start Date: Select the effective date of when the child support deduction should begin per the order’s instructions.
- Support Obligation Date: The date at the top right corner of the support order.
- Case Number: Remittance ID listed on the order.
- Court Order State: Select the state for which the withholding order was filed in. It will be found under State/Tribe/Territory at the top left of the order.
- Deduction Code: Select 'Child Support' from the dropdown or 'Child Support 2' if it is a second order.
-
Vendor: (This ONLY applies if Inova is generating the vendor checks on your behalf, otherwise leave blank). Select the agency where the payment should be sent to (found around page 3 of the withholding order).
- If the agency is not available in the dropdown, contact your CSR to have the agency added.
- Deduction Amount: Enter the flat amount to be withheld per pay period (include any arrears amounts in this total).
- Admin Fee: OPTIONAL - If you’d like to charge an administration fee to the employee, you can enter it here; it will create a separate deduction for the employee (in California, you can charge up to $1.50 per deduction).
- Child Support Arrears Amt: This tab is greyed out and cannot be edited. Leave blank. The arrears amount should be included in the Deduction Amount (# 8 above).
- Does the employee support multiple families? This is employee specific. "No" is the default selection, click on the toggle if the answer should be "Yes"
- Is the employee 12 weeks or more in arrears? If the arrears are greater than 12 weeks, click on the toggle to change it to “YES”. This is found on page 1 of the order, under ‘Order Information’
-
FIPS Code: AKA “locator code”; it can be found on the 2nd page of the withholding order.
-
NOTE: There is a format error in this field that the programmers are working on fixing.
Workaround: Leave blank. You will come back to this field once the deduction is saved.
-
NOTE: There is a format error in this field that the programmers are working on fixing.
- Click the Next
Button.
- You will see the Summary Details of the Child Support deduction, review and confirm that all of the information is correct. If you need to make changes, you can click the Previous
button to go back to the deduction setup screen, otherwise, click the Finish
button.
-
A Success message will display that your deduction has been configured. You can upload a copy of the child support withholding order by clicking on Add File
button (optional), or click the Done
button.
- When you click Done, the screen will go back to the Deduction Widget screen.
-
Go back to add FIPS code: Click on the Actions icon
- Under the Settings section, locate State FIPS #, enter the “locator code” found on the 2nd page of the withholding order.
- Click Save
Setting Up A State Levy Deduction
(ex: Franchise Tax Board, Vehicle Registration Collections)
Please note: Screenshots of withholding order are below instructions to match settings
A) Deduction Type: Choose 'State Levy' from the dropdown, then click the Next Button
B) Start Date: Enter the effective date of the garnishment per the order; see step 4 on page 1A of the order
C) Issue Date: Enter the date found on the top left corner of the withholding order
D) Id #: Enter the Account Number
E) Court Order State: Select California if the agency is “State of California Franchise Tax Board”
- Work State will be automatically filed in per the Court Order State selected above
F) Should the court order state be used for limits? Select “Yes” or “No”, "No" is the default selection but click on the toggle if the answer should be "Yes". Users can determine if the system should follow the issue state or work state to determine limits. For example, if the state is California, the court order limits for the state of California will be enforced. “No” should be selected if you are doing an override. For example, overriding the deduction % from 25% to 15%.
G) Deduction Code: Select “State Levy” from the drop-down menu option
H) Vendor: Note: this ONLY applies if Inova is generating the vendor checks on your behalf - otherwise, leave blank.
Select the agency where the payment should be sent to (found on page 1A of the withholding order). If the agency is not available in the drop-down option, contact your CSR to have the agency added
I) Deduction Amount: Most common setting is “25% of disposable earnings”. Follow the calculation instructions on page 1B of the withholding order
J) Admin Fee: OPTIONAL - If you’d like to charge an administration fee to the employee, you can enter it here; it will create a separate deduction for the employee (in California, you can charge up to $1.50 per deduction)
K) Click the Next Button
L) You will see the Summary Detail of the State Levy deduction, review and confirm that all of the information is correct. If you need to make changes, you can click Previous Button to go back to the deduction setup screen, otherwise, click the Finish Button
M) A Success message will display that your deduction has been configured. You can upload a copy of the garnishment withholding order by clicking on Add File Button (optional), or click Done Button
N) Enable Goal Amount: Click on the Actions icon on the right of the State Levy deduction, then select 'View/Edit'
from the drop down.
-
-
Under the ‘Goal’ section, click on the toggle to Enable
a goal amount to be tracked for the deduction
- Select the Actions icon on the right Action icon
then ‘Change Amounts’
from the drop down.
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Under the ‘Goal’ section, click on the toggle to Enable
-
- Enter the Goal for the deduction (found on page 1A of the withholding order)
-
Click the Save Button
Setting Up A Creditor Garnishment Deduction
(ex: Sheriff's Court)
Please note: Screenshots of withholding order are below instructions to match settings
A) Deduction Type: Choose 'Creditor Garnishment' from the dropdown, then click the Next Button
B) Start Date: Enter the effective date of the garnishment per the order; see page 1 the order
C) Issue Date: Enter the date the judgement was entered in the court
D) Id #: Enter the Levying officer File Number/Court Case Number
E) Court Order State: Select the state that the court who issued the garnishment is in
F) Deduction Code: Select “Garnishment” from the dropdown option
G) Vendor: (This ONLY applies if Inova is generating the vendor checks on your behalf, otherwise leave blank). Select the agency where the payment should be sent to (found on the instructions page of the withholding order). If the agency is not available in the dropdown option, contact your CSR to have the agency added
H) Admin Fee: OPTIONAL - If you’d like to charge an administration fee to the employee, you can enter it here; it will create a separate deduction for the employee (in California, you can charge up to $1.50 per deduction)
I) Goal Amount: Enter the total amount due
J) Work State: will be automatically filed in per the Court Order State selected above
K) Deduction Amount: Most common setting is “25% of disposable earnings”. Follow the calculation instructions on the instructions page of the withholding order
L) City with the minimum wage higher than state: From the dropdown select the jurisdiction that applies to your company
M) Click the Next Button
N) You will see the Summary Detail of the Creditor Garnishment deduction, review and confirm that all of the information is correct. If you need to make changes, you can click Previous Button to go back to the deduction setup screen, otherwise, click the Finish Button
O) A Success message will display that your deduction has been configured. You can upload a copy of the garnishment withholding order by clicking on Add File Button (optional), or click Done Button
Setting Up A Federal Levy Deduction
(ex: IRS)
Please note: Screenshots of withholding order are below instructions to match settings
A) Deduction Type: Choose 'Federal Levy' from the dropdown, then click the Next Button
B) Start Date: Enter the effective date of the levy per the instructions; see page 2
C) Issue Date: Enter the date on Form 668-W
D) Id #: Enter the Identifying number (no dashes)
E) Court Order State: Select the state of the agency
F) Deduction Code: Select “Federal Levy” from the drop-down menu option
G) Vendor: (This ONLY applies if Inova is generating the vendor checks on your behalf, otherwise leave blank). Select the agency where the payment should be sent to (found on the instructions page of the withholding order). If the agency is not available in the drop-down option, contact your CSR to have the agency added
H) Year: Current year or the year the levy was entered/received
I) Filing Status claimed on Levy: Found on “Part 3 and Part 4” of the Levy (page 2)
- Note: This portion of the form should have been filled out by the employee
J) Number of dependents claimed on levy: …same as above (item I)
K) Number of additional exemptions claimed on levy: …same as above (item I)
L) Click the Next Button
M) You will see the Summary Detail of the Federal Levy deduction, review and confirm that all of the information is correct. If you need to make changes, you can click on Previous Button to go back to the deduction setup screen, otherwise, click the Finish Button
N) A Success message will display that your deduction has been configured. You can upload a copy of the garnishment withholding order by clicking on Add File Button (optional), or click Done Button
UKG automatically applies the priority when an employee has more than one support order or more than one type of garnishment order (i.e. different agencies). The priority order is not based on when the withholding order is received. The list below is used to determine the priority of each support order or garnishment.
Priority Order
-
Support
- Child/Spousal Support
- Medical Support
- Arrears
- Federal Tax Levy (IRS Levy)
- Federal Agency Debt (Franchise Tax Board)
- State Agency Debt (Court Order)
- Student Loans
- Bankruptcies
Please note: Federal Levy could take priority over child support ONLY if the levy was received prior to the support order.
Troubleshooting
Issue: An employee's creditor garnishment is not working to calculate on the employee's pay as it should.
Solution: The issue is related to the minimum wage exemption and the use of federal versus state minimum wage in the garnishment setup. Confirm that the garnishment is following the correct minimum wage guidelines.
Issue: The garnishment deduction should be a certain percentage of disposable income, but the deduction is not applying the correct amount.
Solution: The issue could be with the wage assignment service fee deduction. When a service fee is linked to an involuntary deduction, the involuntary deduction needs to be listed at a higher priority in the employee deduction widget than the service fee.
FAQ
Q: The warning message 'Employee frequency mismatch with parent value and override disabled' appears at the top of the Employee's scheduled deduction. What does this mean?
A: The frequency in the Involuntary Deduction Wizard is defaulted to Every Scheduled Pay. This message will appear if the deduction code at the company level is set to a frequency other than what is used in the deduction and the override at the Employee-level box is not checked. In this example, the frequency at the company level is set to Every Pay and the override at Employee-level box is not checked. To resolve this, check the 'Override at Employee Level' on the deduction code next to the Frequency.