John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $111.00 FICA—OASDI 79.98 FICA—HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00...

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

FIT	$111.00
FICA—OASDI	79.98
FICA—HI	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

John’s 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

Kalen O'Brien earned $730 this week. The deductions from her pay were as follows:

FIT	$66.00
FICA—OASDI	45.26
FICA—HI	10.59
State income tax	36.50
State disability insurance	8.61
Health insurance premium	19.50
Credit union contribution	35.00
United Fund contribution	5.00

O'Brien's employer just received a garnishment order (credit card debt of $3,500) against her pay. Compute the following:

round your answers to the nearest cent.

a.O'Brien's disposable earnings	$fill in the blank 1
b.The amount of her pay subject to the garnishment	$fill in the blank 2

Jun 09, 2022

SOLUTION.PDF

John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $111.00 FICA—OASDI 79.98 FICA—HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00...

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