Garnishment Calulations in Payroll prcoess

Question

Hi Expert,
I am new to the US Payroll.
Garnishment Calculation in Payroll ? with examples plz explain me ?
What is Exempt and Non-exempt amount can you explain me with examples?
How this will process in Payroll ?
Thanks
Githa

Answer 1

Hi,
IN SAP:
First you have to configure tax companies under  SAP US payroll and assign tax company to PA and BSI tax company then you have to give tax identifocation for BSI tax company and you have to maintain tax authorities and types and employed ID numbers for each tax company.
Then you have to maintain BSI tax company unemployement experiance rates.
Setting UP BSI Tax Factory:
In order to have BSI Tax Factory and Tax Locator working properly there is a need to understand the basic setup and mapping of Tax Authorities and types.
Tax Factory is a tool used for the calculation of taxes both employee and employer. No history is retained in Tax Factory.
Tax Locator is a tool used to assign the appropriate tax deductions based on the home address and work location of the employee.
Both of these tools requires the setup and mapping of the following:
1)     Mapping of tax Authorities and Tax Types
2)     Setup of unemployment rates in BSI as an override
     Once this basic setup has been completed the assignment of tax deductions and the withholding of taxes will flow automatically through the BSI Payroll system.
Once the BSI Company has been established the unemployment experience rate must be entered.
Once the BSI Company has been setup the next setup is to map the Tax Authorities and tax Types to Lawson Payroll
I think this will give some idea on US taxation
Bhairavareddy