Handling Garnishments Based on Net Wages in PeopleSoft
We have received a new third-party lien that specifies the garnishment should be calculated as 15% of net wages, not gross or disposable earnings. In this case, “net wages” is defined as gross wages minus all deductions — both mandatory (taxes, FICA) and voluntary (insurance, retirement, etc.).
I am looking for guidance on how to best configure this in PeopleSoft. Specifically, should we create a new Disposable Earnings (DE) Definition that includes all deduction codes, or is there a delivered configuration that already accommodates a net wage calculation for garnishments?
Any best practices, examples, or existing delivered DE Definition names would be greatly appreciated.