Managing child support deductions and the protected earnings amount

If you get a notice to deduct child support for one of your employees, you're required under law to comply. In Eclipse Payroll there are two ways you can manage your child support deductions (CSD).

With either method you will need to create a deduction with a type of child support deduction to handle the payment. But there are now two ways to administer the CSD in the payrun; either the current way, or you can combine this approach with some new features we have introduced to help you manage CSD.

Existing method for apply child support deduction

Up until version 9.9 of Eclipse you manage your CSDs as follows.

1. Create the child support deduction.
   
   
   
2. Attach the deduction to the employee and set it to auto-apply in the payrun. The amount of the deduction should be set to the amount you have been advised to deduct each pay period.
   
   
   
3. In the payrun, check that the CSD has been applied correctly according to the legislation.

• Ensure the CSD is for the correct amount, or is less than the correct amount for valid reasons, or has been specified as zero for valid reasons.
• Ensure that the protected earnings amount (PEA) has been correctly observed, if you have been supplied with one.
  
  

You can continue managing CSDs in this way, or you can adopt the new features explained in the next method.

New method for applying child support deductions and handling the protected earnings amount (version 9.9 onwards)

1. Create the child support deduction and give it a generic name. You will use this deduction for any employee with child support. Set it's deduction amount to $1.00.
   
   
   
2. Attach the new deduction to the employee and set it to auto apply in the payrun. Ensure the deduction amount is $1.00.
   
   
   
3. In the Tax Variation/Child Support tab in the employment section of the employees card, enter the following using the child support information you have been supplied.

• Child support deduction amount. This is the dollar value of the deduction to be applied each pay period.
• Protected earnings amount. This may also be supplied and is the amount of an employees NET pay that is exempt for CSDs.
  
  

If you follow these instructions for using the CSD/PEA fields in conjunction with the child support deduction and the deduction is set to $1.00, you will see a message indicating the CSD is being used in the deduction itself, as shown below.

Note the following changes to the way the payrun validates child support deductions when the new CSD/PEA fields are set

If you set a CSD value greater than zero in the employee card, then the system will assume the CSD amount specified is required in the employees pay and will warn you when you commit or save the pay if the deduction:

• Has not been applied at all, or
• If the deduction amount is not equal to the CSD amount previously set

If you have also set a PEA amount, the system will warn you if the employees NET pay:

• Is less than the PEA
  
  

Note also that if either the CSD or PEA is set, then this is displayed at the top left of the employees pay card as shown below. You will not see these fields unless they have a value greater than zero.

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Child support FAQ