If child support payments need to be deducted from an employee's pay and forwarded to the government, follow these steps:

Step 1: Create a Liability Account

• Click the Chart toolbar icon
  
• Click the Liabilities tab
  
• Click Add
  

In the ADD TO CHART OF ACCOUNTS window:

• Enter a liability Account Code not currently in use
  
• Enter a Description (account name) - eg. Prov for Child Support Payments
  
• Account Type will be liability
  
• GST Category with be 11. Non-reportable Receipts
  
• Click OK to save
  
• Click Cancel/Exit
  

Step 2: Create an Expense Account

• Whilst still in Chart, click on the Expense tab
  
• Click Add
  

In the ADD CHART OF ACCOUNTS window:

• Enter an expense  Account Code not currently in use
  
• Enter a Description (account name) - eg. Child Support Payments
  
• Account Type will be Other Expense
  
• GST Category with be 10. Non-reportable Payments
  
• Click on the Balance Sheet Link down arrow to select the Liability account just created
  
• Click OK to save
  
• Click Cancel/Exit
  

Step 3: Create a New Deduction Category

• Click on the Payroll toolbar icon
  
• Click on the Setup List tab
  
• Click on the Deductions tab
  
• Add a new deduction details
  
  • Name e.g. Child Support Payments
    
  • Amount - leave this blank
    
  • Tick Include on Payment Summary checkbox
    
  • In Optional Cashbook Account section, click on the Allocate to radio button and select the expense account created above e.g. 440 Child Support Payments. This allows for detailed tracking of the deduction to be added automatically entered in cashbook records
    
• Click OK to save
  

Step 4: Set up Child Support Payment as a Standard Pay Deduction 

1. Click on the Employees tab
   
2. Click on the applicable employee to highlight
   
3. Click Select Employee
   

 In the Wages Record window for the employee, e.g. John Brown:

• Click on the Applicable Pay Rates tab
  
• Click on the Deductions tab
  
• Click Add
  

• Name - select from drop down list - e.g. Child Support Payments
  
• Amount - enter amount to be forwarded to Department of Human Services per pay
  
• Identifier - optional - e.g. Child Support Number
  
• Notes - optional
  
• Include on Payment Summary checkbox should automatically default to ticked
  
• Optional Cashbook Account - this should automatically default to Allocate to 440 Child Support Payments
  
• Click OK to save
  

Now, when the employee's pay is processed, the Child Support deduction will automatically be deducted.

Step 5: To Keep Track of the Child Support Payments That Have Been Withheld and Paid

• Click on the Review toolbar icon
  
• Select the Account Code i.e. 440 CHILD SUPPORT PAYMENTS to view child support payments withheld and paid
  
• Payments withheld are shown as a negative expense
  
• Payment made to the government are shown as a positive
  
• If the total is 0 - all payments have been made to the government