Setting up a Department of Courts deduction
ANSWER ID:22990
If an employee has a fine or owes money to the Department of Courts, the payments can be set up in Payroll.
When should I set up this deduction? This should be used only when the appropriate letter from Department of Courts is received.
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee.
- Click the applicable employee then click OK.
- Click the Compulsory Deductions tab.
- Under the Department of Courts heading, enter the following information as shown in the example below:
- The total amount of the fine in the Fines in Default field
- The Fines Number and/or a CID Number. These will appear on the letter received from the Department of Courts.
- Click the Pay Defaults/Totals tab for the applicable employee. You will note that the COURTS (Fines in Default) pay code will have been automatically added to the Employee's Pay Defaults.
- In the Rate column, enter the amount that is required to be deducted each pay. This will appear on the letter received from the Department of Courts. Note: The payments will continue to be deducted at this amount unless the net pay drops below the "protected net earnings" (normally 60% of the employee's net pay).
- Leave the Type set to Variable. This will ensure the payments will automatically stop being deducted when the total amount has been paid. See our example below.
- Go to the Maintenance command centre and click Maintain Pay Codes.
- Select the COURTS (Fines in Default) pay code.
- Click the Other tab.
- Select the option Include in Direct Credit Schedule. You will note the bank account number required is already hard-coded into Payroll.
- Go to the Prepare Pays command centre and click Enter Pays.
- Process the employee's pay as you normally would.
When will the deduction appear? The Court deduction will not appear until the employee's earnings are entered.