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 Template for Earnings Disclosure Worksheet

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Heather Sundt's profile image
Heather Sundt posted 05-21-2024 13:07

I work in MN and received a letter from a collection agency that needs to take a certain amount from one of my employees.  Every payroll I need to figure out how much should be withdrawn from his paycheck.  Is there a template or a worksheet that I can just plug in his numbers and the sheet does the math? (Gross Earnings, disposable earnings....)

Thank you in advance, 

Heather

Dennis Pearson's profile image
Dennis Pearson

Are you legally obligated to reply/honor? This is usually state law controlled.

Heather Sundt's profile image
Heather Sundt

Dennis, 

We are legally obligated.  The letter was sent to me by the District Court.  Signed off by an attorney.

Dennis Pearson's profile image
Dennis Pearson

Your payroll software should be able to setup the proper calculations. The tricky part, if needed, meaning manual monitoring, is to check in with the garnishing authority and monitoring the remaining balance when you get close to the payoff. I cannot remember a time where I have done a manual calculation - since I stopped doing payroll with pen and paper. Yes, I am a programmer, but I also cannot remember any of my customers telling me their garnishment could not be properly calculated with the settings I offer.

Heather Sundt's profile image
Heather Sundt

Thank you Dennis.  I've never had to do a manual calculation.  They've always been through the state website.  We are currently working with ADP.  I guess my next step is the reach out to them.

Theresa Allen, CPP's profile image
Theresa Allen, CPP

Heather,

You might see if the state of Minnesota already has a worksheet.  The garnishments I get from the state of Michigan include a worksheet that walks me through the 25% of disposable OR 30 X minimum wage calculation.  Unfortunately, I NEED the worksheet if the employee also has a child support order or more than one garnishment.  Our software does NOT calculate the garnishment amount correctly unless there is only one garnishment/levy/child support order at a time.

-Theresa

Renee Barton's profile image
Renee Barton

This is for Ohio.  I adjust as needed depending on what type of garnishment and what the letter from agency states is disposable/biweekly factor/fees etc.  Child Support, Department of Education, Court garnishments are all different.  I use this spreadsheet than manually adjust my garnishment deduction code with the correct figure.