Step 2. Set up calculation formulas for IRS tax levy
Add the IRS tax levy calculation formula.
These instructions are for 2023. You may need to update the instructions if you are setting up the IRS tax levy for a different year.
Setting up IRS tax levy calculation formula
1. Open Connect Payroll > Organization > Calculation Formulas.
2. Click New (CTRL+N).
3. In the Formula Name box, enter IRS Tax Levy Exempt Wages
Calculation Formula, Formula name
4. Click Modify.
5. Enter the following formula.
Var1 = WagesCurrPer-Modifier1
Var2 = (CurrentExemptions*Modifier2)-(CurrentAdditionalExemptions*Modifier3)
Result = MAX((Var1-Var2),0)
Tax Levy Calculation Formula Explanation
-
Var1. Available wages. Subtracts exempt wages from subject wages using the used for calculation setting on the tax levy pay code. This is the wage available to the tax levy.
-
Var2. Allowed exemptions. Uses the addditional exemptions allowed based on the employee's claims on parts 2, 3, 4, and 5 of the wage levy.
-
Result. This is the amount available to the tax levy. It is the available wages less allowed exemptions, but it cannot be less than zero.
5. Click .
Connect will search for errors and typos in the calculation formula. The instructions for correcting the error will be displayed in a dialog box. You want the dialog box that says No Errors Found.
6. Click .
The calculation formula should look like this when you're finished...
7. Click Save (CTRL+S).
8. Click (CTRL+F12).
Copyright © 2025 Caselle, Incorporated. All rights reserved.
Related Articles
IRS Tax Levy Calculation
A tax levy is a legal seizure on wages to satisfy a tax debt. Employers generally have at least one full pay period after receiving a notice of levy on wages to begin withholding the required amount. The levy will end when the levy is released, the ...Step 3. Set up calculation for IRS tax levy
Set up the IRS tax levy calculations to link the calculation table with the calculation formula for Head of Household Married Filing Jointly Married Filing Separately Single These instructions are for 2023. You may need to update the instructions if ...Step 1. Set up calculation tables for IRS tax levy
Add a calculation table for the IRS tax levy for Head of Household Married Filing Jointly Married Filing Separately Single These instructions are for 2023. You may need to update the instructions if you are setting up the IRS tax levy for a different ...Step 4. Set up pay code for IRS tax levy
Set up a pay code for IRS tax levy to calculate the employee deduction. This pay code is created in the Pay Codes table at the Organization level. It's a general pay code that you will be able to customize when you add the IRS tax levy pay code to an ...Step 5. Add IRS tax levy pay code to employee
To add an IRS tax levy to an employee, add the IRS tax levy pay code to the employee record and then, set up the tax levy settings for the employee. You're going to add the IRS tax levy pay code and customize it for the employee using the employee's ...