Proper way to do child support withholdings?

Posted by Jaime Lyn on June 22, 2006, 9:53 pm

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Can someone tell the proper way to do child support withholdings using Peacht
Complete 2005? It's a set amount, not a percentage.

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Posted by Chad A. Gross [SBS-MVP] on July 23, 2006, 5:26 pm

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Hi Jamie -

Historically, what I always did was to go to the Chart of Accounts and
create a new current liability account called Child Support Payable. Then I
went to Maintain | Default Information | Employees. On the EmployEE tab, I
entered a new record for ChildSupp and used the liability account I just
created. Don't check the Calc or Memo boxes and OK out of that screen.

Next, open the Maintain Employees screen, pull up the employee(s) that have
Child Support withholding, go to the EmployEE tab, scroll down to the
ChildSupp entry and enter in the amount of their withholding (make sure it
is a negative value), and save.

I would actually go one step further in that I would create a separate Child
Support Liability account for each employee that had Child Support
withholding - in that case, I would also change the GL account number on the
EmployEE tab of the Maintain Employees screen to match the GL account for
that employee. The benefit of this was that it made it very easy to
reconcile child support withholding for a given employee - as that account
should always come back to zero balance.

Finally, to make your life easy, enter a memorized transaction for your
payment to the child support collection center - and enter a separate line
item for each employee (being sure to use their personal child support
liability GL account if you create separate ones) - this will make it easy
to track what is being paid - and when you have an employee start or leave,
you only have to simply remove or add a line to the check, versus
recalculate what your new total is . . . separate details lines for each
employee also makes it much easier to reconcile :^)

--

Chad A. Gross [SBS-MVP]
SBS ROCKS!
www.msmvps.com/blogs/cgross
www.mobitech.biz

> Can someone tell the proper way to do child support withholdings using

> Peacht Complete 2005? It's a set amount, not a percentage.

> --------------= Posted using GrabIt =----------------

> ------= Binary Usenet downloading made easy =---------

> -= Get GrabIt for free from http://www.shemes.com/ =-