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SAP Payroll and California Creditor Garnishment

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Has any SAP US Payroll consultant or customer created a special garnishment rule (T5UGB) to meet the somewhat new (7/1/2016) California State Creditor Garnishment rule of "Maximum amount that can be deducted from weekly wages is lesser of (1) 25% of disposable earnings or (2) 50% of the amount by which disposable earnings for the week exceed 40 times the state minimum hourly wage" as if so would appreciate if you could provide some insights. I reached out to several customers who were not complaint in this area as sadly SAP leaves customer to track and configure all the garnishment updates themselves.

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Hi Jareet,

We have been in contact with SAP regarding this issue since February of this year. They suggested that we customize tables V_T5UG3 and V_T5UG4 to yield our desired results. We were able to show them how we customized the suggested tables along with tables V_T5UGA and V_T5UGB; however, there is still a missing gap in the functionality.

We are looking for other clients who may have this same issue.Have you contacted SAP and gotten any results? If enough of us express the need for this functionality, maybe we can get it fixed.Currently, what is your work-around for handling California creditor garnishments?



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Hi Jarret,

You need to set-up a Non-Exempt model in table V_T5UG3 as mentioned below and assign it to new rule that you would assign to CA Creditor Garnishment along with existing disposable net model in table V_T5UGA.

Table V_T5UG3:

Nonexempt amount: ZCR0 (CA - 25% Net or 40x SMW)

Under Limit 1-

Indicator: 1 (Exempt)

Value: 75.00

Unit: 1 (Percent of net)

Under Federal Minimum Wage-

Min hours: 40

Hourly wage: 10.50 (this is 2017 year State Minimum Wage for CA and needs to be updated as per IRS changes)

Table V_T5UGA:

Country: US

State: CA

Order Type: CR

Rule: 001 (Use any 3 character ID or 3 digit number)

Model disposable net: CACR (No change, use existing one as it is that is being used for CA Creditor)

Model nonexempt amount: ZCR0 (Created in table V_T5UG3)

Now you can test this rule in IT0195 for CA Creditor garnishment order.

Hope this helps.