Garnishments - Finland 

Purpose

Use this component to process employee Garnishments under Payroll Finland. Garnishment deductions typically take place in every payroll period.

Features

·       Garnishments Finland infotype (0228)

·       Garnishment calculations

The Garnishment calculation takes place in the Payroll accounting schema for Finnish payroll program (FI00), after the Cumulate net amount and form payment amount – Finland sub schema (FIA9).

The Garnishment calculation Finland payroll function (FIGAR) calculates the Garnishment amount.

Payroll Finland calculates Garnishment using one of the following rules:

¡      Fixed amount rule

§       If the sum of Garnishable Net and the External Garnishable Net is greater than or equal to the Protected Amount, the system will deduct a fixed amount as Garnishment.

§       If the sum of Garnishable Net and the External Garnishable Net is less than the Protected Amount,

Garnishment = Fixed Amount - Protected Amount

¡      Variable amount rule (1/3 or ¾ rule)

§       If the total Garnishable Net is less than or equal to the Protected Amount, there is no withholding of Garnishment.

§       If the Total Garnishable Net is greater than the income limit,

Garnishment = 1/3* Total Garnishable Net

§       If the total Garnishable Net is less than or equal to the Income Limit, but greater than the Protected Amount,

Garnishment = ¾ * Total Garnishable Net

·        External Garnishable Net

This is the Garnishable Net from another employment, taken into account by the system during the calculation of the final withheld Garnishment amount, in the Withheld garnishment wage type (/275).

·        Protected Amount

After Garnishment deductions, the company must ensure that an employee is left with sufficient amounts for the maintenance of the employee and the employee’s children. The Protected Amount depends on the number of children.

·       Adjustments in Garnishment amounts

You can use the Garnishment corrections model wage type (M270) for storing the adjustments to the Garnishment amount. The system cumulates all adjustments into the Garnishment corrections wage type (/277).

·       Retroactive changes in the income eligible for Garnishment deductions

A retroactive increase or decrease in the income does not affect the garnishment amounts paid in the past periods. The system calculates Garnishment on the principle Garnished when paid.

·       Wage Types

¡      The Payroll driver (Finland) (HFICALC0) calculates Garnishment using certain wage types that are stored in the cluster tables. These wage types include:

§       Benefits (/104)

§       Tax exemption IT 15 (/111)

§       External garnishable net (/270)

§       Total garnishable net (/271)

§       Protected amount (/272)

§       Income limit (/273)

§       Calculated garnishment (/274)

§       Withheld garnishment (/275)

§       Diff. with./calc. garn. (/276)

§       Garnishment corrections (/277)

§       Tax days (/405)

§       Statutory net pay (/550)

§       Stat. net recalc. diff. (/552)

§       Garnishment corrections (M270)

¡      The Payroll driver (Finland) (HFICALC0) stores the results of Garnishment calculations in the following wage types:

§       Calculated garnishment (/274)

§       Withheld garnishment (/275)

§       Diff. with./calc. garn. (/276)

·       Garnishment configurations

You can configure the various tables required for Garnishment in the IMG under Payroll Finland ® Garnishment.

Reporting

Obtain an overview of an employee’s Garnishment payments using the Garnishments overview (Finland) report (HFILGAR0).