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Example 6-2 John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $111.00 FICAOASDI 79.98 FICAHI 18.71 State income tax 31.00 State

Example 6-2

John Jenkins earns $1,290 per week. The deductions from his pay were:

FIT $111.00
FICAOASDI 79.98
FICAHI 18.71
State income tax 31.00
State disability insurance 9.03
Credit union deduction 40.00
Health insurance premium 47.50
Charitable contribution 5.00

Johns disposable earnings would be:

$1,290.00 - $111.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,040.28

Example 6-3

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 $86.00
FICAOASDI 55.49
FICAHI 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

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