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Administrator Guide
Last Updated: 2023-09-08
Record a Creditor Garnishment Withholding Order (USA)

Record a Creditor Garnishment Withholding Order (USA)

Record a Creditor Garnishment withholding order to begin automatic deductions during payroll processing.
  1. Access the
    Record US Withholding Order for Worker
     task.
  2. Enter the
    Worker
     name and select the
    Creditor Garnishment (USA)
    Order Type
    .
    Workday dynamically displays the fields required for this type of withholding order.
  3. Complete the fields on the right side of the page. Some of these fields are unique to creditor garnishment withholding orders. As you complete this step, consider:
    Option Description
    Issued In
    Select the state that issued the order.
    Override Withholding Order Rule
    Use this field to override the Workday default tax authority and rule for an individual employee. Workday calculates these withholding order deduction criteria based on that rule:
    • Deduction priority.
    • Disposable earnings.
    • Frequency conversion factor.
    • Maximum amount to withhold.
    Payroll Tax Authority Used
    Displays the Workday-assigned Payroll Tax Authority.
    Non Resident State
    Applies only to Alaska creditor garnishments. Select to have Workday correctly calculate the maximum amount to withhold for nonresident Alaska workers.
    County FIPS code
    Applies only to Maryland Creditor Garnishments.
    Deduction Recipient
    Select the third-party recipient of the withholding deduction. If the deduction recipient isn't set up in Workday, select
    Create
     to add the recipient.
    Originating Entity
    Agency or court that issued the withholding order.
    Creditor Garnishment Type
    Workday applies applicable rules based on the tax authority and the type you select in this field.
    Head of Household
    Applies only to Nebraska.
    Number of Dependants
    Applies only to:
    • Massachusetts.
    • Rhode Island.
    • South Dakota.
    • West Virginia.
    Worker is Laborer or Mechanic
    Applies only to Arkansas.
    Worker Income is Poverty Level
    Applies only to New Jersey.
    Good Cause Limit Percent
    Applies only to Indiana creditor garnishments.
    Expected Annual Earnings
    Applies only to Iowa.
    Weekly Gross Wages
    Applies only to Nevada.
    Memo
    For information only. Use this field to document additional details for this IWO.
  4. On the
    Attachments
     tab, select relevant attachments.
  5. On the
    Local Minimum Wage
     tab, select the
    Use Override Rate
     check box and enter the local minimum wage in the
    Local Minimum Wage Amount
     field.
    Applies only to California creditor garnishments. Workday uses this information for compliance with the state requirement to use the higher of federal, state, or local minimum wages in creditor garnishment withholding order calculations.
    You can use these web services for loading local minimum wages:
    • Get Withholding Order Local Minimum Wage Rate
    • Put Withholding Order Local Minimum Wage Rate
Create ID Definitions and Sequence Generators
FAQ: Withholding Orders (USA)
Reference: Edit Tenant Setup - Payroll