Garnishment Payments
How do I set up garnishment payments for my employees in BambooHR?
Purpose: When setting up specific non-benefit deduction types, you will need to determine whether or not you would like BambooHR Payroll to collect and pay the deduction for you. If you want the deduction to be collected and paid by BambooHR Payroll, you will need to set up your garnishments in BambooHR. This help guide will walk you through how to manage your garnishments in Payroll settings.
Garnishment Payments Payroll Settings
Go to Payroll in Settings and select Garnishment Payments.
Check the box next to each deduction type you would like BambooHR Payroll to collect and pay. This action will determine which deduction types will allow payees to be added on the employee's Pay Info tab after adding specific deduction types at the employee level.
Please note there is a fee for each individual garnishment collected and paid by BambooHR Payroll each payroll. More information on garnishment fees can be found here.
Setup Payees
When a garnishment is marked to be paid and collected by BambooHR Payroll for the first time, you will see the pop-up box in the screenshot below.
To confirm that BambooHR Payroll will collect all non-benefit deductions under the specific type of garnishment, you need to fill out the information for each employee in the pop-up box. Otherwise, you will not be able to continue. Once the payee is set up in Settings the first time, you can then add them to the applicable garnishment on the employee's Pay Info tab under Deductions. Please upload any supporting documents to the employee’s profile.
Please note this pop-up will not appear again after payees are set up the first time. You can add payees for Other Garnishments after the initial setup in Payroll settings by navigating to the employee's Deduction section under their Pay Info tab. Payees for Tax Levies and Child Support will already be populated for you to choose from. However, if a certain payee does not exist under the Tax Levies or Child Support category, you can use the Other Garnishment category instead and enter the payee.
Edit or delete a payee
To edit the Payee's name, address, phone, or email, click on their hyperlinked name in Settings > Payroll > Garnishment Payments. A modal will appear for you to make those edits. If you update an address that is shared with another deduction, you will receive an error letting you know that is a shared payee. You will need to update or end the other deduction(s) or add the existing payee to the other deductions on the employee's deduction tab.
Only Account Owners, Full Admins, or Payroll Admins in BambooHR have access to edit or change garnishment payee information.
To delete a payee, hover over the payee record in the table and click the trash icon that appears.
If you have an employee whose garnishment is currently paid to the selected payee, you will not be able to delete the payee from the list. You will need to update the payee under the non-benefit deduction or end the deduction on the employee's Pay Info tab before deleting the payee.
Ending garnishment payments
*Please reach out to the employee and/or the garnishment agency to confirm that the garnishment has been paid in full before ending the garnishment in BambooHR. Then, follow the instructions on removing a non-benefit deduction here!
What if there has been an overpayment?
Please contact the garnishment agency to confirm how the funds will be returned.