Protected Earnings Tab
Use this tab to set the transaction types that are included in the protected earnings calculations. Also you can apply protected earnings when creating payments in which the transaction type is defined as Child Support.
The protected earnings amount is set by the government and is the minimum amount that must be left after tax and child support is deducted from a person's wage. You cannot deduct child support which would leave the net pay (after tax withheld and deductions of child support) of less than the protected earnings amount. This amount is indexed annually.
If child support deductions reduce net pay to less than the protected earnings amount, you must changed it. This can be done on the Create Payments form, or can be updated when running the Protected Earnings report.
Options Reference
Each option and field on the form is described below. Mandatory options and fields are highlighted in red.
Transaction Types included in Earnings
Select from the list of transaction types those that make up earnings. The transaction types selected should not include other deductions.
Apply Protected Earnings when Creating Payments
Select this option to update the child support amounts if the protected earnings amount is not reached. Greentree Desktop prompts you if the amounts are updated. You must send notices to the Child Support Agency if the amount changes from the standard deduction on a pay.
Child Support Transaction Type
Select the transaction type used for child support deductions.
Protected Earnings Amount
This table displays the protected earnings amounts from the Child Support Agency. You can update this amount, or it updates after the figures are released.