IRS Tax Levy Page

Use IRS Tax Levy page to simulate the calculation of a garnishment amount for an employee based on the take-home pay specified by the Internal Revenue Service. Running the calculation does not apply the levied amount to the employee's record. Instead, you need to set up a record for tax levies in the Deduction table, and then assign the record to the employee. For additional information, refer to the Procedures section.

Action Bar Item

The IRS Tax Levy page's Action Bar includes the following item:

Menu Path:  Human Resources > Entry & Processing > Employee > Employee Information > search for and select an employee > click OK to display the Employee Information detail page > click Actions on the Action Bar, and then select IRS Tax Levy

Following are procedures for running the tax levy simulation, modifying the employee's Deduction records for simulation purposes, and deducting a garnishment from the employee's pay.

Running the IRS Tax Levy simulation

1. Select Human Resources > Entry & Processing > Employee > Employee Information > search for and select an employee > click OK to display the Employee Information detail page.

2. Click Actions on the Action Bar, and then select IRS Tax Levy to display the IRS Tax Levy page.

3. In the Net Pay field, enter the pay the IRS allows the employee to receive after taxes and deductions. For example, if an employee's wages need to be garnished and $600 take-home (net) pay is allowed, enter 600.00.

4. If needed, click Deductions to display the Payroll Deductions page. For information on using this page, refer to the next procedure, beginning with Step 3.

5. Click OK to begin the simulation.
   The Simulated Results page will display showing the resulting calculations.
   The tax levy amount displays on the Garnishment line, which is the last deduction shown. The system's calculation does not affect the employee's records, nor can it be stored. As result, you should make a notation of the amount, so you can apply it to the employee's Deduction record.

6. Click OK to close the Simulated Results page.

7. Click Back to close the IRS Tax Levy page.

Modifying the employee's Deduction records for simulation purposes

1. Select Human Resources > Entry & Processing > Employee > Employee Information > search for and select an employee > click OK to display the Employee Information detail page.

2. Click Actions on the Action Bar, and then select IRS Tax Levy to display the IRS Tax Levy page.

3. Click Deductions to display the Payroll page. This page displays all of the deductions currently assigned to the employee.

4. For the sake of the simulation, you can:

   • Add a deduction by entering its code in the first open Deduction field.

   • Change a deduction by entering your changes in the appropriate field.

   • Delete a deduction by positioning your cursor on the deduction's line then clicking Delete Row.

5. If a Deduction record for a garnishment already exists, determine whether this should be factored into your calculation. To override an additional garnishment, change the record's Deduction Amount/Rate field to 0.00.

6. To return to the IRS Tax Levy page, click OK.
   If you started the garnishment calculation procedure, resume the procedure beginning with Step 5.

Deducting the garnishment from the employee's pay

1. Create a record for a tax levy in the Deduction table. Set the record's deduction method to S - Employee Amount. For information on setting up a deduction record, refer to Deduction Table.

2. Assign the deduction in the employee's Employee Deductions page. To apply the amount shown in the Simulated Results page, enter the amount in the page's Deduction Amount/Rate field. This page can be accessed by clicking Payroll Information on the Employee Information detail page's Action Bar, and then selecting Deductions.

3. In Pay Run Processing's Pay Run Setup - Step 3 page, be sure to select the deduction frequency that applies to the garnishment.

4. In Pay Run Processing's Employee Time page, verify that a timecard is loaded for the employee and that it includes the pay rates required.

5. Process the pay run. The garnishment will be deducted from the employee's pay.
   For related information on these steps, refer to Employee Deductions Page and Pay Run Processing.