Disposable income definitions (form) 6.2 CU7 and prior
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
Click Payroll > Setup > Benefits > Disposable income definition.
Use this form to specify the amounts to exclude from a worker’s disposable income when garnishment amounts are calculated.
When the court imposes an order to garnish a worker’s wages, the actual amount of the garnishment is limited to a percentage of the worker’s disposable income. Under the federal definition, the disposable income is determined by subtracting all deductions that are required by law from total wages. These mandatory deductions include federal, state, and local taxes; FICA and Medicare premiums; state unemployment or disability taxes; and state-mandated payments for state employee retirement plans.
Many states use the federal definition for disposable income. Some states have their own definitions, which exempt certain additional earnings from total wages and subtract other deductions, further reducing what is considered disposable income. State definitions are subject to change every year. Because it can be difficult to match your organization’s earning codes and benefits to the definitions used by a specific state, we recommend that your legal advisors determine the earning codes and benefits to include in each disposable income definition. We also recommend that they review the definitions annually.
An employee’s disposable income is reduced by the amount of the earnings and the benefits that you specify in this form, in addition to the amount of federal, state, and local taxes. You do not have to specify the taxes; all mandatory taxes are automatically subtracted from the total wages. Tax levies and other garnishments are not automatically excluded from disposable income. If you have to exclude them from the worker’s disposable income, you must specify them in the benefit section of this form.
Důležité
Disposable income definitions do not have date-effective versions. Therefore, when you change a definition, the change takes effect immediately. We recommend that you not change any disposable income definition that you have used. Instead, create a new disposable income definition, and then do the following:
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If the garnishment enhancement hotfix is not installed, use the version settings in the Maintain benefits form to change from the old definition to the new definition on the required date for each worker that it applies to.
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If the garnishment enhancement hotfix is installed, select the new definition on the Garnishment and tax levy rules form for each worker that it applies to.
The garnishment enhancement hotfix may have been installed automatically if you installed a different hotfix that shares dependencies with the garnishment enhancement hotfix.
Poznámka
This topic describes functionality that is available only if the Payroll - USA configuration key is selected.
Tasks that use this form
Garnishment and tax levy setup tasks
Worker and position payroll tasks
Setting up payroll: Basic topics
Form-level controls
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New Delete |
Create or delete a disposable income definition. |
Fields |
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Name Description |
The name and description of the disposable income definition. Consider using the two-letter state abbreviation as the first two letters of each disposable income definition. For example, when you create a disposable income definition for garnishments from Texas, enter a name that starts with TX. When you receive a new garnishment order, it is easy to see whether you already have a disposable income definition for the state. |
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Earnings controls
For more information about earning codes, see Earning code and earning code group tasks or Earning code examples.
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Add Remove |
Add earning codes to or remove them from a disposable income definition. If an existing earning code is deleted, it is automatically removed from all disposable income definitions. New earning codes that are created are not automatically added. When you maintain earning codes, you must consider the effect of any changes on your disposable income definitions. |
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Earning code Description |
When total wages are calculated, earning lines that are designated by the listed earning codes are excluded. |
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Benefit controls
In Microsoft Dynamics AX garnishments and tax levies are treated the same way that benefits are. Therefore, to exclude the amount of garnishments or tax levies from a disposable income definition, you must add the garnishment or tax levy benefits to this section of the disposable income definition.
For more information about benefits, see Zaměstnanecké výhody (formulář) or Prvky zaměstnanecké výhody (formulář).
Buttons |
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Add Remove |
Add benefits to or remove them from a disposable income definition. If an existing benefit is deleted, it is automatically removed from all disposable income definitions, also. New benefits that are created are not automatically added. When you maintain benefits, you must consider the effect of any changes on your disposable income definitions. |
Grid heading |
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Benefit |
When disposable income is calculated, the amount of any payroll deductions for the listed benefits is subtracted from the total wages. |
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See also
Setting up payroll: Basic topics
Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).