Important information for adding a new garnishment

• Select the Garnishment Type based on the garnishment notice. Powerpay may display multiple selections for the same type. Select the lowest numbered option available for the garnishment type.

• If a Support garnishment order contains a requirement for both an ongoing payment and an arrears amount, you need to set up two garnishments. If no other Support garnishments exist, select Support 1 for the ongoing payment and Support 2 for the arrears calculation.

• If you receive multiple Provincial garnishments for the same employee, but from different issuers, contact the new issuer to advise them another Provincial garnishment is active to determine next steps.

If the employee’s Garnishment/State in the Payee Information section is Ontario with any Support garnishment 1 – 4, enter the order number in the format: 0 followed by 6 digits (for example, 0654321).

Note: Dayforce can electronically remit all Ontario support garnishees to the Ontario Family Responsibility Office (FRO). If you would like this feature activated, contact your Customer Support Team to obtain the authorization form that requires your signature. Until this is activated, a cheque will be issued with your payroll and you are responsible to forward it to FRO. Third-party remittances are not available for other garnishment issuers.

• If you select one of the following options:

  • Garnishment Value becomes the employee’s Net Pay

  • Employee’s Net Pay becomes the Garnishment Value

  you must select Do not apply minimum subsistence rules (0 value is assumed) in the Minimum Subsistence Rules section:

• Do NOT enter a Value Per Pay greater than 100% for any of the following % Calculation Methods:

  • % of Gross Earnings less Statutory Deductions
  • % of Gross Earnings less Statutory Deductions and Union
  • % of Gross Earnings up to Provincial Subsistence Maximum
  • The employee’s Net Pay becomes the Garnishment Value

• If you select Apply new subsistence amount:

  • Enter a value (greater than 0) in the corresponding box.

  • Do NOT enter an amount in the Standard Monthly Target Amount box in the Target Information section.

• If you select For the Monthly Target Amount only, do not apply minimum subsistence rules, select Monthly Target Amount Required in the Target Information section.

Review the garnishment order to determine the target instructions. Most garnishment orders indicate the type of target required.

Once the target information is saved, it cannot be changed. If you've made an error you must delete the garnishment and set it up again. 

If you select the Reducing Target Amount Required option:

Example: If the garnishment order indicates that the total arrears are $4,000.00, select the Reducing Target Amount Required option.

• In the Original Target Amount field, enter the total amount owing for this garnishment.

• Do NOT enter a zero or a negative amount in the Original Target Amount field.

Note: A Remaining Target Amount field displays after a payroll is processed.

If you select the Monthly Target Amount Required option:

Example:

If the garnishment order indicates that a sum of $400.00 a month is required, payable at the rate of $200.00 semi-monthly, select the Monthly Target Amount Required option.

• If the order is received before the first pay of the month enter 200.00 in the Garnishment Value per Pay ($ or %) field and 400.00 in the Standard Monthly Target Amount Required field.

• If the order is received after the 1st pay, enter 200.00 in the Garnishment Value per Pay ($ or %)field; 400.00 in the Standard Monthly Target Amount Required field and 200.00 in the First Month’s Target Amount field.

• Enter a value in the Standard Monthly Target Amount field. (No negative amounts or a 0 (zero)).
• Do NOT enter a negative amount in the First Month’s Target Amount field.