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Write "Wage Garnishment Payable" and the account balance as a current liability on your balance sheet of your financial statements to properly record the account. In the example, you have a current liability of $5,000 in the Wage Garnishment Payable account.
While employee compensation is what people generally think of when describing payroll, your company incurs additional liabilities such as taxes and garnishments in compliance with federal, state, and local laws.
Dear Sir/Madam, I am writing to request that you stop the wage garnishment that is currently being imposed on me. I am unable to make the payments at this time due to [insert reason, such as financial hardship]. I have attached documentation that supports my claim.
Step 2: Add the garnishment to QuickBooks Go to Payroll, then Employees. Select your employee. From Deductions & contributions, select Start or Edit. Select + Add Garnishment. In the dropdown menu ?select the Garnishment Type. Enter a description. ... Enter the following fields based on the garnishment type you chose.
File a Claim of Exemption Another way to get rid of the garnishment, or at least reduce it, is to claim that some or all of your income is exempt from the garnishment. For example, if your income is already being garnished by another order, it could reduce the impact of any new garnishments.