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Deductions and garnishments

Straight talk: the payroll engine calculates pre-tax deductions and garnishments correctly (and it's tested), but the screens to attach them to an employee aren't built yet. Here's what that means for you today.

  1. Where things standThere is currently no Deductions or Garnishments section on the employee form, the run form, or the paycheck review — nothing you enter in the app today can attach a deduction to a paycheck. The math underneath is done and verified; the screens are coming.
  2. What the engine already supportsPre-tax deductions of both kinds: traditional 401(k)-style (lowers federal income tax only) and Section 125 / HSA-style (lowers federal income tax, Social Security, Medicare, and state tax together), plus post-tax deductions like a Roth 401(k) or loan repayment (reduces net pay only).
  3. Garnishment rules it knowsCourt-ordered garnishments capped at 25% of disposable earnings per the federal CCPA, with per-order overrides (e.g. up to 60% for certain child-support orders).
  4. Meanwhile: write the order downPut the case number, agency, and amount in the Notes field on the employee's form so the paperwork can't get lost, and keep the order itself in your files.
  5. Meanwhile: withhold by handFor a real garnishment or benefit deduction today, reduce the check or deposit amount outside the app and keep your own record of what was withheld and sent where.
  6. Your legal duty doesn't waitA court's income-withholding order binds you as the employer whether or not your software has a button for it — comply by hand until the feature ships.
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