How do I create a Tiered Garnishment?

It's recommended that you test this formula, and if you have a limit, you enter the proper limit and limit period on the Employee Deduction record.

An employee has a garnishment which is dependent upon the Employee's weekly wages.

Each Court Ordered Garnishment will be different. In the example below we are using the Disposable income weekly amount based on $ 217.50.

You'll create the formulas listed below and then use them in the final formula which is placed on the Employee Deduction record. Once the formulas are in place you can use them and modify or create a new formula as needed for each specific case. With Garnishments, you may want to also consider using a limit and a proper limit period so that this deduction will not over-calculate.  Always test the formulas to verify that the correct calculations are being made. 

Create the following formulas:

Disposable Income:

Gross pay[PR Check]-Employee taxes[PR Check]

Disp Income over 290.00:

IF(Disposable Income[Public Formula] >= 290.00, Disposable Income[Public Formula] *0.25)

Next Create the final formula. This is the formula which will be placed on the Deduction or on the Employee Deduction.

Tiered Garnishment:

IF(Disposable Income[Public Formula] <=217.50,0,IF(Disposable Income[Public Formula] >217.50 AND Disposable Income[Public Formula]<=290.00,Disposable Income[Public Formula]-217.50,Disp Income over 290.00[Public formula])

NOTE:

• If the Disposable Income wages less than $217.50, no Garnishment deduction will occur.
• If the Disposable Income wages are greater than $217.50 and less than or equal to $290.00, the formula will subtract $217.50 from disposable income wages and calculate that value for the Deduction.
• If the Disposable Income wages are greater than 290.00, 25% will calculate for the Garnishment deduction.
• It's recommended that after creating this formula you test to verify that your formula is accurate.