How to Deduct Child Support Payments

From the Maintenance menu choose Deductions to open the Deductions Maintenance window.
Using the first free deduction code, add a deduction called "Child Support".
Ensure that the Post-Tax Deduction checkbox is ticked.
Set the Calculation Method to "Fixed Dollar Amount".
Leave the Amount at zero.
Set the Type to "Child Support".
Set the Protected Pay % field to 60. This deduction should not be made if it causes the Net Pay to reduce below the stated percentage.
Select the Make Part Deduction option. In cases where earnings fluctuate to such a degree that the net pay is not sufficient to leave 60% of the pay remaining, a part deduction will be applied.
Click Save or press F10 to save.
From the File menu select Open Employee and choose the employee you want to edit.
Select the Standard Pay tab and click the Deductions button to open the Deductions window.
Add the deduction created in step 2. Specify the dollar amount which is to be deducted each pay period.
If, during the Current Pay, the deduction amount varies from the norm, you will need to edit the Current Pay. Select your employee, choose the Deductions window, edit the deduction amount and assign one of the following variance codes:
- C = Ceased Employment - If an employee stops working for you, deduct child support from the last full pay you gave them and from any holiday pay due. Enter code "C" so that the IRD can remove the employee from your records. Do not use this variation code if the employee stops then restarts working for within the same month.
- A = Advanced Payment - If an employee is paid in advance (say if they are on holiday during the next payday) deduct child support from the advance as though you are paying the employee on the usual payday. Then add this to the other child support deductions for the period when the employee was given the advance pay. The child support deducted will be more than usual for that period, so enter "A" as the variation code.
- P = Protected Earnings - If the employee's earnings are lower than usual, you may not be able to deduct the full child support requested due to the net protected earnings rule. In this case, enter "P" as the variation code.
- S = Short Term Absence - If the employee is off work on unpaid leave for a short period of time and you cannot deduct any or all of the amount requested, enter "S" as the variation code.
- D = Deducted previously - If the full amount of child support hasn't been deducted from an employee's wages because you previously made an advance payment, the child support will be less for that period, so enter "D" as the variation code.
- O = Other - Enter "O" if none of the other variation codes explain why the amount of child support deducted is different from what was expected.
Click Save or press F10 to save.