Garnishments

[miket]

My boss wanted to know if the taxes employers pay are figured before or after a garnishment is deducted from employees. Can you advise?

Thank you Paul.
Linda

[Paul Mayer]

Hi Linda, I'm guessing you are referring to something like Child Support. That is normally a percent of the wages after taxes. Follow the instructions in this FAQ if that's what you were asking about:

http://zpay.com/vbulletin/showthread.php?2630-Child-Support-Deduction

[miket]

Hi Paul,
I already have the garnishment set up and it is working great. My question is this: Employer's taxes are based on gross wages, correct? Employee's taxes are also based on gross wages (unless a spec. insurance plan, 401K, etc.). On employee wages, the garnishment is a set amount of 103.84 each week, for child support. Are the employee's taxes based on his gross before the garnishment or gross wages after garnishment?

Thank you Paul,

Linda

[Paul Mayer]

Actually the taxes are based in "taxable wages", not gross wages. In the case of that deduction setup and use, it is taken out after the employee's taxable wages have been taxed.

[miket]

Paul,
Thank you very much.
Linda