As an employer, if you receive a garnishment and notice deed from the debt collection office, you are legally obliged to withhold the amount specified therein from the employee's salary and transfer it directly to the debt collection office.
In this article, you will learn how to correctly record a wage garnishment in bexio and what to consider.
1. Legal Basis
- Garnishable amount: The debt collection office determines the employee's subsistence level. Anything above this constitutes the garnishable amount.
- Payment: The garnished amount must not be paid to the employee but must be transferred to the debt collection office.
- Employer's obligation: As an employer, you are liable for the correct transfer of amounts according to the order.
2. Setup in bexio
Since a wage garnishment is a deduction from the net salary (after deduction of social insurance and taxes), it is recorded in bexio as a net deduction.
Steps: Add wage type
- Open the current paystub for the affected employee.
- Go to Edit Employee.
- In the basic payroll data, select wage type 6300 Wage Garnishment and enter the garnishment amount.
- After successful saving, this wage type will automatically be deducted each month.
- Important: Since this is a deduction, make sure that the amount reduces the net result.
3. Transfer to the debt collection office
bexio books the deduction on the payroll. However, you must initiate the actual payment to the office separately:
- Payment section: In the Banking area, create a manual payment to the debt collection office's account specified in the deed.
- Reference: Be sure to include the reference number and the employee's name so that the office can allocate the payment.
4. Frequently Asked Questions (FAQ)
What happens in case of short-time work or sickness daily allowance?
The garnishment always refers to the income actually earned. If the income decreases (e.g., due to illness or underemployment), you must check whether the subsistence level is still maintained. In case of doubt, contact the competent debt collection office.
Do I have to re-enter the wage garnishment every month?
If it is stored as a recurring payroll item directly in the employee master data under "Basic Payroll Data," the deduction will be automatically taken into account in each new payroll run.
Is wage garnishment subject to withholding tax?
Yes. Wage garnishment is deducted from the already taxed net salary. It has no influence on the amount of withholding tax or social security contributions.
Note: This article provides technical support. For legal questions regarding the subsistence level or disputes about the garnishment amount, please contact the competent debt collection office or your legal counsel.