Question
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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