1. © 2006 Nova Scotia Government All rights reserved. Garnishments

2. © 2006 Nova Scotia Government All rights reserved. Agenda u Welcome u Introductions u Logistics and Ground Rules u Course Objectives

3. © 2006 Nova Scotia Government All rights reserved. Logistics and Ground Rules u Training facility information (breaks, lunch, etc.) u Cell phones / Blackberrys on silent mode u No email during training u Participate in group activities u Respect time frames

4. © 2006 Nova Scotia Government All rights reserved. Garnishment Objectives At the end of this course, you will be able to: u Explain and understand the Garnishment process u Explain and execute the steps to record a Garnishment Order and Garnishment Debt u Explain and execute amending a Garnishment Order/Debt u Explain and execute canceling a Garnishment Order/Debt u Audit transactions to validate results

5. © 2006 Nova Scotia Government All rights reserved. Overview Garnishments Garnishment Processing Reports and Auditing Overview

6. © 2006 Nova Scotia Government All rights reserved. Overview At the end of this module, you will be able to: u Explain the various infotypes pertaining to Garnishment Orders u Explain the process of creating Garnishment Orders in SAP

7. © 2006 Nova Scotia Government All rights reserved. Garnishment Order u The Garnishment Order is created using transaction code PA30 (Maintain HR Master Data) to record and maintain the details and terms of the garnishment letter/order u The Garnishment Order (IT0066) must be created first (before the debt can be recorded). This infotype stores the master data relevant to the garnishment order: - Start Date- Reason - Case number- Jurisdiction - Case Description- Category - Status- Vendor

8. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt u Once all of the information is entered on the Garnishment Order and the infotype is saved, the Create Garnishment Debt infotype will automatically appear to record the deduction and payment schedule Debt IOU Deduction Dedction Deduction Creditor Deduction Owes EI

9. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt u The Garnishment Debt infotype (IT0067) is used to store the financial information provided on the garnishment letter/order. This will include the initial balance (arrears), the percentage or flat fee amount of the ongoing payment, and the unit/frequency of the payments u Additional information such as one-time garnishment payments or garnishee fees can also be recorded, if required

10. © 2006 Nova Scotia Government All rights reserved. Garnishment Processing u Steps involved in Garnishment Processing can be summarized as follows: –Receive and set up Garnishment Order in SAP using transaction PA30 Maintain HR Master Data –Create the related Garnishment Debt for the Order –Verify deduction of payments (from payroll simulation) –Remittance of amounts collected to appropriate third-party(s)

11. © 2006 Nova Scotia Government All rights reserved. Module Review 1.What are the two Infotypes necessary to create garnishments in SAP? 2.What are the steps involved in processing Garnishment Orders in SAP?

12. © 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1.What are the two Infotypes necessary to create garnishments in SAP? Infotype 0066 Garnishment Order and Infotype 0067 Garnishment Debt 2.What are the steps involved in processing Garnishment Orders in SAP? Create Garnishment Order, Create Garnishment Debt, Verify Deduction, Remittance of amounts collected

13. © 2006 Nova Scotia Government All rights reserved. Garnishment Processing Garnishments Garnishment Processing Reports and Auditing Overview

14. © 2006 Nova Scotia Government All rights reserved. At the end of this module, you will be able to: u Explain and execute the creation of a Garnishment Order and Garnishment Debt u Explain and execute amending a Garnishment Order/Debt u Explain and execute the cancellation of a Garnishment Order/Debt Garnishment Processing

15. © 2006 Nova Scotia Government All rights reserved. Garnishment Processing u Details from the Garnishment Letter/Order are recorded in SAP on Infotype 0066 Garnishment Order u Buttons on this infotype can be used to display an overview (history) of all orders/debts, as well as display each entry individually: –Debt Overview – provides a list of all Debts associated with the Order –Debt – is used to display each Debt screen individually –History – displays each Order screen individually –History - all orders – provides a list of all Orders

16. © 2006 Nova Scotia Government All rights reserved. Garnishment Order

17. © 2006 Nova Scotia Government All rights reserved. Garnishment Order Cont’d u Jurisdiction – This is the province or other authority governing the garnishments for the employee. This determines which laws are applicable for the garnishment order. i.e.: Federal, or by individual province

18. © 2006 Nova Scotia Government All rights reserved. Garnishment Order Cont’d u To support the creation of Garnishment Orders the following Garnishment Categories have been built in to the system: Employment and Immigration Authorization Family Support Deduction Notice HRDC – Demand to Pay Minister of Finance Notice of Bankruptcy Notice of Garnishment Orderly Payment of Debts Orderly Paymt of Debts – Trust Acct (CCRSB) Requirement to Pay (Revenu Quebec) Requirement to Pay (Revenue Canada) Service NS & Municipal Relations (CCRSB) Voluntary Payments Wage Assignments

19. © 2006 Nova Scotia Government All rights reserved. Garnishment Order Cont’d u Depending on the Category selected on the Garnishment Order infotype 0066, u the Debt Type and applicable Remittance Rule will default (on the Garnishment Debt) based on system customization. These defaults can be overwritten if necessary.

20. © 2006 Nova Scotia Government All rights reserved. Garnishment Order Cont’d u Vendors –Enter the vendor code (if known), or –Select the “Vendors Name by Company Code” Tab to perform a search –A list of applicable vendors will be displayed based on the Name and Company Code entered Please note: all vendors linked to that Company Code will be displayed –To select the appropriate vendor, double click on the vendor number

21. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt u Once the Garnishment Order infotype is saved, the Create Garnishment Debt infotype will automatically appear to record the deduction and payment schedule u Once saved, a Garnishment Debt infotype 0067 is created and linked to the associated Order

22. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt Cont’d

23. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt Cont’d u Unit of ongoing payment A and B are used with a percentage Numbers 1 thru 7 are used with a flat fee amount Is not configured

24. © 2006 Nova Scotia Government All rights reserved. Garnishment Debt Cont’d u Depending on the stipulations of the Garnishment Letter/Order, various Garnishment Debts can be created. For example: –An initial balance with a percentage or flat fee deduction per pay period –An on going percentage or flat fee deduction per pay period (no initial balance) –An on going percentage or flat fee deduction per pay period with a one time Garnishee fee –An on going percentage or flat fee deduction per pay period for only pay period 1 and pay period 2 in a month that has three pay periods

25. © 2006 Nova Scotia Government All rights reserved. Garnishment Wage Types Wage types related to Garnishment Order Processing can be verified in the Results Table of the payroll simulation after Garnishments have been created: u Employee Deduction Wage Types –If applicable, Garnishment Balance – this would indicate the up-to- date balance of arrears –Garnishment Ongoing Payment – shows the regular recurring percentage or flat fee amount –Garnishment Rate of Payment – the applicable percentage being deducted –Garnishment/Garnishee Fee – one-time Garnishee Fee amount

26. © 2006 Nova Scotia Government All rights reserved. Garnishment Wage Types Cont’d u Technical Wage Types: –/G00 Garnishment Net – the net salary amount to be used for calculations and limit determination –/G01 Garnishment Gross – the gross salary amount to be used for calculations and limit determination –/G02 Garnishment Sum – amount of the garnishment collected and used to draw down the balance if one exists

27. © 2006 Nova Scotia Government All rights reserved.  [Demonstration]  [Garnishment Order/Debt]  [Demonstration]  [Garnishment Order/Debt] Demonstration and Practice

28. © 2006 Nova Scotia Government All rights reserved. Garnishment Adjustment u A Garnishment Adjustment will be processed to record a change to the employee’s on going percentage or flat fee deduction, as indicated by an Amended Order u A change to the initial (original) balance could also be made if required u An amended order will need to be created in addition to an amended debt (in some situations only the debt will be amended; for example, a change in the employee’s payroll area)

29. © 2006 Nova Scotia Government All rights reserved. Garnishment Adjustment Cont’d u An Adjustment may also be required when an employee changes payroll areas and a flat fee is being deducted –If a flat fee is used (and the adjustment is not made) the amount will be deducted from monies made in both payroll areas u To process an Adjustment: –1. Delimit the original debt by assigning an end date of the last day the employee is active in the initial payroll area –2. Copy the debt infotype 0067 and enter the start date of the first full payroll period the employee is in the new payroll area Note: If a percentage is being used (no adjustment is required) the system will deduct a percentage from monies earned in the initial payroll area and then deduct a percentage from monies earned in the new payroll area

30. © 2006 Nova Scotia Government All rights reserved. Garnishment Adjustment Cont’d u Once a Garnishment has been amended an Infotype 0068 Garnishment Adjustment will automatically be created u Garnishment Adjustments are not to be entered retroactively. u The system has not been built to process garnishments in payroll periods that have already been run u A current date must be used

31. © 2006 Nova Scotia Government All rights reserved. Garnishment Adjustment Cont’d u A Garnishment Adjustment is used to change the percentage or flat fee amount being garnished from an employee’s pay. A Garnishment Adjustment can also be processed for the following situations: –Additional Payment –Exceptional Payment –New Initial Balance –Refund –Reset Arrears –Stopped Payment u All of the above are stored in an Infotype 0068 record

32. © 2006 Nova Scotia Government All rights reserved.  [Demonstration]  [Garnishment Amendment]  [Demonstration]  [Garnishment Amendment] Demonstration and Practice

33. © 2006 Nova Scotia Government All rights reserved. Garnishment Cancellation u A Stopped Payment Adjustment can be processed to stop an individual payment (for one pay period) u However, a Garnishment Cancellation can be processed to write off the remaining debt and reduce the outstanding balance of the employee’s garnishment debt to zero

34. © 2006 Nova Scotia Government All rights reserved. Garnishment Cancellation u Cancellations are processed in the current payroll period (when the cancellation notification is received)

35. © 2006 Nova Scotia Government All rights reserved.  [Demonstration]  [Garnishment Cancellation]  [Demonstration]  [Garnishment Cancellation] Demonstration and Practice

36. © 2006 Nova Scotia Government All rights reserved. Module Review 1. The Debt Type and Remittance Rule default from what information entered and where? 2. Which Unit of ongoing payments can be used with a percentage? With a flat fee? 3. Which SAP standard Unit of ongoing payment has not been configured for the School Boards? 4. If an employee is moving to a new payroll area, when would a garnishment adjustment be required?

37. © 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1.The Debt Type and Remittance Rule default from what information entered and where? The Category selected on the Garnishment Order infotype 0066. 2.Which Unit of ongoing payments can be used with a percentage? With a flat fee? PercentageFlat Fee - percent of net- per payment - percent of gross- per pay period - monthly - monthly prorated - monthly prorated and accumulated - yearly prorated

38. © 2006 Nova Scotia Government All rights reserved. Answers to Module Review 3.Which SAP standard Unit of ongoing payment has not been configured for the School Boards? #3 - Weekly 4.If an employee is moving to a new payroll area, when would a garnishment adjustment be required? If a flat fee is being used, an adjustment must be processed to avoid a deduction being processed twice.

39. © 2006 Nova Scotia Government All rights reserved. Reports and Auditing Garnishments Garnishment Processing Reports and Auditing Overview

40. © 2006 Nova Scotia Government All rights reserved. At the end of this module, you will be able to: u Audit transactions to validate results Reports and Auditing

41. © 2006 Nova Scotia Government All rights reserved. Reports and Auditing u PA20 - Display HR Master Date is used to view entries made for the individual infotypes Garnishment Order Infotype 0066 Garnishment Debt Infotype 0067 Garnishment Adjustment Infotype 0068 u PC00_M07_CALC_SIMU - Payroll Simulation is used to verify deduction amounts and frequency of payments u PC_Payresult - Display Pay Results is used to view wage types and deduction amounts after real payroll has been run

42. © 2006 Nova Scotia Government All rights reserved. Reports and Auditing u Garnishment History – PC00_M07_H – generates a list/history of employee garnishments u Garnishment Statistics – PC00_M07 _S - is used to generate statistics on the number of persons and garnishment that have been recorded in SAP

43. © 2006 Nova Scotia Government All rights reserved. Display HR Master Data – PA20

44. © 2006 Nova Scotia Government All rights reserved. Display HR Master Data – PA20 Cont’d Debt Overview

45. © 2006 Nova Scotia Government All rights reserved. Display HR Master Data – PA20 Cont’d Debt

46. © 2006 Nova Scotia Government All rights reserved. Display HR Master Data – PA20 Cont’d History

47. © 2006 Nova Scotia Government All rights reserved. Display HR Master Data – PA20 Cont’d History – all orders

48. © 2006 Nova Scotia Government All rights reserved. Payroll Simulation – PC00_M07_CALC_SIMU u Excerpt from an employee’s Payroll Simulation of the present Garnishment Wage Types 20O0 - (2)(zero)(Capital “O”)(zero)

49. © 2006 Nova Scotia Government All rights reserved. Display Pay Result – PC_Payresult

50. © 2006 Nova Scotia Government All rights reserved. Display Pay Result – PC_Payresult

51. © 2006 Nova Scotia Government All rights reserved. Garnishment Statistics – PC00_M07_S

52. © 2006 Nova Scotia Government All rights reserved. Garnishment Statistics Cont’d

53. © 2006 Nova Scotia Government All rights reserved. Garnishment History – PC00_M07_H

54. © 2006 Nova Scotia Government All rights reserved. Garnishment History Cont’d

55. © 2006 Nova Scotia Government All rights reserved.  [Demonstration]  [Exercise]  [Demonstration]  [Exercise] Demonstration and Practice

56. © 2006 Nova Scotia Government All rights reserved. Module Review 1. What information can be viewed on Infotypes 0066 Garnishment Order and 0067 Garnishment Debt using PA20 Display HR Master Data? 2. Name one option to validate a payroll deduction for a garnishment. 3. What report can be run to show a history of an employee’s garnishments?

57. © 2006 Nova Scotia Government All rights reserved. Answers to Module Review 1.What information can be viewed on Infotypes 0066 Garnishment Order and 0067 Garnishment Debt using PA20 Display HR Master Data? IT0066 - Date, Case Number, Status, Reason, Jurisdiction, Category, Vendor By selecting the Debt, Debt Overview, History and History – all orders buttons, details on the actual debt/deductions can be viewed IT0067 – details from order, plus initial balance, ongoing payment and frequency or unit of payment By selecting the pay schedule button details on the deductions per pay period can be review

58. © 2006 Nova Scotia Government All rights reserved. Answers to Module Review Cont’d 2.Name one option to validate a payroll deduction for a garnishment. Payroll simulation or pc_payresult after real payroll is run 3.What report can be run to show a history of garnishments? PC00_M07_H will provide an overview/history of employee garnishments month and year to date totals, as well as the current pay period deduction and remaining balance

59. © 2006 Nova Scotia Government All rights reserved. Review of Course Objectives At the end of this course, you should be able to: u Explain and understand the Garnishment process u Explain and execute the steps to record a Garnishment Order and Garnishment Debt u Explain and execute amending a Garnishment Order/Debt u Explain and execute canceling a Garnishment Order/Debt u Validate the entries

60. © 2006 Nova Scotia Government All rights reserved. JEM Project Website and Student Sandbox Information To view answers that have resulted from the Parking Lot the JEM Website is: www.projectjem.ednet.ns.ca If you think that you may want to access the Student Sandbox, a request must be made to the JEM Training Team at the following e-mail address: JEMtraining@gov.ns.ca

61. © 2006 Nova Scotia Government All rights reserved. Please complete the course evaluation sheets. u Your input will help to shape future enhancements in the SAP R/3 Training Program here at NSPG. Evaluation