Example 6-1

Huffman Company has a child support order outstanding on one of its employees (Charles Suffert$170 per week). Charles Suffert's disposable income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional $237.50 out of Suffert's pay.

Lesser of:
		25% $950	=	$237.50	or
		$950 (30 $7.25)	=	$732.50

Garrett Hudson earned $895 this week. The deductions from his pay were as follows:

FIT	$96.00
FICA-OASDI	55.49
FICA-HI	12.98
State income tax	27.75
State disability insurance	6.71
Health insurance premium	31.00
Credit union contribution	50.00
United Fund contribution	10.00

Hudson's employer just received a garnishment order (credit card debt of $2,140) against his pay. Compute the following:

Round your answers to the nearest cent.

a. Hudson's disposable earnings	$
b. The amount of his pay subject to the garnishment	$