What is garnishment type in SAP PY - Payroll?

SAP Term: garnishment type

• Component: PY

• Component Name: Payroll

• Description: Form of garnishment &EXAMPLE& Common garnishment Preferred garnishment Cession of wages

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• Key Concepts: 
  Garnishment type is a feature in SAP Payroll that allows employers to deduct a certain amount of money from an employee’s salary for legal reasons. This deduction is usually done to pay off debts or to comply with court orders. The garnishment type defines the type of deduction, such as child support, tax levies, or student loan payments. 
  
  How to use it: 
  In order to use the garnishment type feature, employers must first set up the garnishment type in the system. This can be done by entering the details of the garnishment type, such as the name, description, and amount to be deducted. Once this is done, employers can assign the garnishment type to an employee’s payroll record. 
  
  Tips & Tricks: 
  It is important to note that the garnishment type feature only applies to employees who are subject to deductions for legal reasons. Employers should also ensure that they are compliant with all applicable laws and regulations when setting up and using the garnishment type feature. 
  
  Related Information: 
  For more information on how to set up and use the garnishment type feature in SAP Payroll, please refer to the official SAP documentation.