Transaction Types: Levy "All But" Deduction Setup

Overview

Updated 07/13/2021

An "All But" levy is a DI (Disposable Income) exempt deduction that will remove "All But" a specific value or percent from a paycheck (ex. child support, court order, etc.).

Levy deductions are created in the Admin tools and can be applied to specific employees, or as a system wide deduction, after creation.

Note: In this example the deduction will be configured to deduct 25% from a paycheck, with a minimum "all but" of @217.50.

 

 

Admin Tools Setup

1. Navigate to Admin Tools and Open the Transaction Type section.
   
   
2. Click the Add New button below the Transaction Type grid.
   
   
3. Enter a Name, Description, and System Name.
   
   
4. Select the Type of Permanent Deduction.
   
   
5. Mark the IsTiered check box.
   
   
   
   
6. Select the Deduction Category of Garnishment.
   
   
7. Select the correct Pre Tax Deduction status. For this example, the status is None.
   
   
8. Enter other required information based on your company. This may include:
   
   

   Vertex CMP Code	Your Company Code as recorded with Vertex.
   W2Box	The number of the field on the W2 form where the total amount accrued by this deduction will be displayed.
   W2Label	The alphanumeric value (e.g. AA, B.b, B.B) of the sub-field of the W2Box value entered above. Consult your employer W2 for more information.

9. Click Save.

Once saved, there are two ways to implement the levy:

• The "tier-ing" can be configured in admin tools on the transaction itself and included in each supported pay cycle (weekly, biweekly, semi-monthly, monthly).
• The tier can be configured for use on an employee by selecting it in Employee > Rates section, and further modifying it.

Configuration for System-Wide Use

When entering values, remember that all numbers are entered as per-year numbers rather than per-paycheck numbers. Therefore, every number needs to be 52 times the expected number for weekly pay, 26 for biweekly, and 24 for semimonthly. This means that if we want a tier to apply to the $0 to $217.50 range on a weekly per-check basis, the number used would be $11,310.

1. Navigate to Admin Tools and open the Transaction Type section.
   
   
2. Select the Tiers tab.
   
   
3. Enter the following three tiers into the lower grid:
   
   
   1. Tier 1: Enter a flat-rate deduction of $0 for the range of $0.00 to [annual minimum].
   2. Tier 2: Enter a IsLevy deduction of the minimum allowed deduction allowed for the range of [annual minimum+$.01] to [annual minimum*(1 - deduction percent)].
   3. Tier 3: Enter a IsPercent deduction of deduction percent for the range of [ annual minimum*(1 - deduction percent) + $.01] to MAX.
      
      
      EXAMPLE
      

      Note: We will be using the 25% deduction example from above. and all numbers will be annualized (multiplied by 52).
      
      
   1. Tier 1: Enter a flat-rate deduction of $0 for the range of $0.00 to $11,310.00.
   2. Tier 2: Enter a IsLevy deduction of $11310.00 for the range of $11,310.01 to $15,080.00.
   3. Tier 3: Enter a IsPercent deduction of 25.00% for the range of 15,080.01 to 99,999,999.00.
      
      
      
      
      
4. Tab off of the last row to save.

Configuration for Individual Employee Use

When entering values, remember that all numbers are entered as per-year numbers rather than per-paycheck numbers. Therefore, every number needs to be 52 times the expected number for weekly pay, 26 for biweekly, and 24 for semimonthly. This means that if we want a tier to apply to the $0 to $217.50 range on a weekly per-check basis, the number used would be $11,310.

1. Open the employee record for the employee which will be using this deduction.
   
   
2. Navigate to the deduction sub-section.
   
   
   
   
3. Click New Deduction to clear the fields.
   
   
4. Enter all information required. Be sure to set the following fields:
   Note: There is no need to enter the fixed amount since the tier will handle that.
   
   
   

   Sequence	The order in which this deduction will be processed during payroll processing.
   Pay Cycle	Weekly, Bi-Weekly, monthly or your own custom cycle.
   Lifetime limit	Max amount allowed to be deducted by this deduction during the time in which is used.
   Agency	What agency this deduction is being applied through.
   Start Date	The date this deduction will go in effect for this employee.

5. Navigate to the Rates tab to enter the tiers
   
   
6. Enter the following three tiers into the lower grid:
   
   
   1. Tier 1: Enter a flat-rate deduction of $0 for the range of $0.00 to [annual minimum].
   2. Tier 2: Enter a IsLevy deduction of the minimum allowed deduction allowed for the range pf [annual minimum+$.01] to [annual minimum*(1 - deduction percent)].
   3. Tier 3: Enter a IsPercent deduction of deduction percent for the range of [annual minimum*(1 - deduction percent) + $.01] to MAX.
      
      
      EXAMPLE

      Note: We will be using the 25% deduction example from above. and all numbers will be annualized (multiplied by 52).
      
      
      
      
   1. Tier 1: Enter a flat-rate deduction of $0 for the range of $0.00 to $11,310.00.
   2. Tier 2: Enter a IsLevy deduction of $11310.00 for the range of $11,310.01 to $15,080.00.
   3. Tier 3: Enter a IsPercent deduction of 25.00% for the range of 15,080.01 to 99,999,999.00.
      
      
7. Tab off the last line to save. The deduction will start appearing on paychecks issued after the start date entered in step 4.

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