Created by
Amanda_Hamner4Teacher
3.1 and 3.2 Calculation of Involuntary Deductions/net pay calc
Terms in this set (129)
A __________________________ is a legal proceeding authorizing an involuntary transfer of an employee's wages to satisfy a debt or other obligation. An employer is required by law to deduct (garnish) a specific amount of an employee's pay and send (remit) it to a court, person, or government agency to satisfy a debt owed by the employee.
The enforcement of child support orders is a joint federal/state responsibility with federal laws providing standards states must meet or exceed in order to qualify for federal funding of state child support enforcement programs. These federal standards are contained in____________________________________________________provide the legal framework around which state child support withholding laws are constructed
If the amount on the order is less than the maximum deduction allowed by state or federal law....deduct the amount on the orderOrders to withhold wages for child support take priority over all other garnishments issued against an employee's wages except for ______________________issued before the date the original child support order was established.federal tax leviesEmployers must put the Income Withholding Order (IWO) into effect when?state law requires it to begin.Employers must continue to withhold until notified otherwise in writing (a written notice may be transmitted electronically) by the court or agency involvedrelease of lien notice__________________________has implemented along with all states an internet portal (e-IWO) allowing employers to receive withholding orders electronically.The federal Office of Child Support Enforcement (OCSE)Employers must send payment of withheld wages to the party listed on the IWO within ______________________ of paying wages to an employee whose wages are being garnished. State law may set a shorter time limit for making payments.7 business daysEmployers may combine payments from several employees and send only one check or electronic payment each pay period to each originating State Disbursement Unit (SDU) to cover all child support withholdings for that period. If making a combined payment, employers must?*List each employee separately
*Itemize each amount withheld for each order from each employee
*Note the date each amount was withheldState restrictions on combining payments may be more severe. True or false?True: State restrictions on combining payments may be more severe.Most state disbursement units can receive payments through _______________________________.Electronic Funds Transfer (EFT)Tim's employer receives a child support withholding order requiring $300 to be withheld from Tim's weekly pay.The maximum amount that can be withheld from Tim's pay under federal and state law is $275, which causes Tim to be $25 in arrears each week. Also, the state where Tim works allows employers to withhold a $5 administrative fee each time child support is withheld. If Tim's employer wants to collect the administrative fee, it can withhold $270 for the current child support, take the $5 fee from Tim's remaining wages, and increase Tim's weekly arrearage to $30.Employers are prohibited from ______________________________________against an employee because the employee's wages are subject to withholding for child support. Violators can be fined according to an amount set by state law.discharging, disciplining, or otherwise discriminatingEmployers may charge employees an administrative fee for processing wage withholding orders each pay period. The maximum amount is set by state law and the fee must be withheld from the employees' other wages, not the child support payment. Can the free exceed the support order amount?However, the total child support payment and administrative fee cannot exceed the maximum for child support withholding limit set by the CCPA or a lower maximum set by state law. According to the OCSE, employers can withhold administrative fees even if the amounts ordered to be withheld for child support equal or exceed the maximum allowed by law. In such a case, the amount of the support that would have been withheld, if not for the fee, becomes part of the arrearage owed by the noncustodial parent.If an employee whose wages are subject to a child support withholding order separates from employment for any reason, the employer has a certain amount of time set by state law to notify the child support enforcement agency of the employee's last known address and, if known, the name and address of the employee's new employer. The OCSE uses an ______________________________ that allows electronic notifications of terminations.online portal (eTerm or e-IWO)If employers fail to withhold amounts required by withholding orders (up to the legal maximum),______________________________________________.they are liable for the full amounts not withheld and possibly a fine assessed by the state.True or False: Employers need alter their pay periods to comply with the law. They can contact the agencies administering the orders to arrange a revision of the amounts to be withheld to fit the employers' pay cycle.False: Employers need not alter their pay periods to comply with the law. They can contact the agencies administering the orders to arrange a revision of the amounts to be withheld to fit the employers' pay cycle.One of the reasons an employer can reject an IWO and return it to the sender is ?...if the form is altered or contains invalid information.The following may be changed on the IWO form:Font.
Pagination.
Supplemental and/or state-specific information, such as state codes, may be added.An employer should contact the CSE agency in the state that issued the underlying support order on a case-by-case basis to request a revised IWO directing payment to the SDU. The employer should continue to send payments to the __________________ until the state CSE agency or sender issues a revised IWO directing payment to the SDUnon-SDU address________________ provides organizations the ability to receive and respond to withholding orders in an electronic format.e-IWOOther organizations receive orders in a PDF format. The PDF format reduces the time between the issuance of the order and when the employer receives it. All states are participating in the e-IWO process. True or FalseTrue:Other organizations receive orders in a PDF format. The PDF format reduces the time between the issuance of the order and when the employer receives it. All states are participating in the e-IWO process.States are required to establish a ____________________________for the collection and disbursement of child support payments in all Title IV-D cases and all other cases in which a child support order is issued.state disbursement unit (SDU)Disbursements from the state disbursement unit must be made within _________________________ from an employer if there is enough information to identify the payee.two business days of their receipt______________ __________________are determined by subtracting all deductions required by law from an employee's gross earnings (wages, commissions, bonuses, sick pay, and periodic pension payments).Disposable earningsDisposable earnings, what deductions are required by law?Deductions required by law include withholding for federal, state, or local income tax, social security or Medicare tax, state unemployment or disability tax, and mandated payments required by state employee retirement systems.What deductions for disposable earnings, not requried by law?Deductions not required by law, such as health and life insurance premiums, union dues, and retirement plan contributions, are not subtracted from earnings to calculate disposable earnings.True or false: Tips are included as earnings when calculating disposable earnings.False: Tips are not included as earnings when calculating disposable earnings.Each state can develop its own definition of disposable pay with the limitation that disposable pay as defined by the ______________ cannot be greater than the amount calculated under federal law.stateCalculating child support withholding takes into consideration disposable earnings and regulations determining the maximum amount to withhold.
The maximum child support deduction is the lesser of...........The amount of the order, or
The maximum deduction allowed by the CCPA or state lawWages already subject to withholding for tax levies, federal agency garnishments, other child support withholding orders, or wage garnishments are not considered deductions required by law. Therefore, they should not be subtracted from gross earnings when determining the maximum amount subject to child support withholding. However, if a _______________________________ has priority over the current child support withholding order, the amount required to be deducted under the previous order must be taken into account when determining whether the maximum deduction allowed by the CCPA has been reached.tax levy or similar deductionTrue or False: child support withholding orders do not have priority for payment over bankruptcy orders.False: child support withholding orders have priority for payment over bankruptcy orders.Ronald's employer receives a newly issued child support order while Ronald's wages are already subject to a federal tax levy under which his employer is currently withholding $450.00 (45%) of Ronald's disposable earnings every two weeks (Ronald's disposable earnings are $1,000.00). The original issue date of the child support order does not predate the federal tax levy.For the purposes of this example, assume the amount of Ronald's disposable earnings and take-home pay are the same. Ronald is not supporting another spouse or children other than those mentioned in the child support order and he is not more than 12 weeks in arrears in making child support payments. Ronald's disposable earnings remain $1,000.00 after the child support withholding order is received, but his employer may deduct only $150.00 (15%) of Ronald's disposable earnings to satisfy the child support withholding order ($450.00 currently withheld + $150.00 child support = $600.00 maximum under the CCPA).Employees who fail to pay their taxes on time may become __________________________________.A tax levy requires employers to deduct an amount of money the employee owes, plus any penalties and interest payments from the employee's wages and remit it to the proper government agency.subject to a federal or state tax levy after other collection efforts have been exhausted.The amount of the employee's wages subject to the levy
Whether there are other claims to the employee's wages that take priority over the levyThe employer makes these choicesThe amount of the employee's wages subject to the levy
Whether there are other claims to the employee's wages that take priority over the levyUnemployment compensation benefits
Workers' compensation benefits
Annuity and pension payments under the Railroad Retirement Tax Act and to certain armed services personnel
Certain armed service-connected disability payments
Certain public assistance payments (welfare and supplemental social security benefits)
Amounts ordered to be withheld under a previously issued court order for child supportall of these payments other than withheld child support can be subject to a ________________ if the levy is authorized by the IRS.15% tax levyEmployees are entitled to an amount exempt from levy equal to the:1. Amount of the employee's standard deduction (based on the employee's filing status as stated on Form 668-W, Part 3)
2. Number of dependents (as stated on the employee's Form 668-W, Part 3) multiplied by an exempt amount ($4,400 for 2022):
************The amount of the standard deduction and value of the dependents is divided by the number of pay periods in the year (52 pay periods for employees paid weekly, 26 for biweekly).
****************Employees paid on a daily basis have their standard deduction and value of dependents amounts divided by 260, the number of workdays in a year (52 weeks times 5 workdays), for one dependent.
************Employees who are paid on a one-time basis or on a recurring but irregular basis are entitled to the weekly exempt amount (divide the amount of the value of a dependent and standard deduction by 52) for each week to which the payment is attributable.
**************If the employee does not submit Parts 3-4 of Form 668-W to the employer, the amount exempt from levy is determined as if the employee has a filing status of married filing separately with no (zero) dependents.The amount exempt from levy based on the employee's standard deduction, dependents, and pay period is found in ______________________________.IRS Publication 1494, Tables for Figuring Amount Exempt from Levy on Wages Salary, and Other Income (see the Resource Center's Tax Forms and Publications)____________________________(see the Resource Center's Tax Forms and Publications), instructs employers to remit amounts withheld for the levy on the same day wages are paid to the employee.Form 668-W, Notice of Levy on Wages, Salary, and Other IncomeEmployers are notified of a levy when they receive Form 668-W from the IRS. Form 668-W consists of six parts.Part 1 is the employer's copy, informing the employer of the amount of the levy and of the employer's obligation to withhold and remit the levy amount.
Parts 2-5 must be given to the employee.
Part 2 is the employee's copy of the levy notice.
Parts 3-5 require the employee to provide information to the employer and the IRS regarding tax filing status and any dependents (except children covered by a child support order against the employee that takes priority over the levy).
*****************Employees must return Parts 3 and 4 to the employer within three work days after the employee receives them. The employer then sends Part 3 to the IRS (after completing the reverse side) with the first payment and keeps Part 4.
Part 5 is the employee's copy of the tax filing status and dependent information.
Part 6 is retained by the IRS.
The first payment to the IRS should accompany Part 3 of the form after both the employer and the employee complete the information requested.
Payments should be sent to the IRS at the address shown on the front part of Part 1 (the employer's copy).
The IRS does not currently have a method to make payments through Electronic Funds Transfer.
Withholding and remittance must begin with the first payment of wages to the employee after the employer receives Form 668-W, regardless of when the wages were earned.
A check made payable to the IRS must have the employee's name and social security number on its face unless the employer sends in one check for multiple employees.
When making a payment for multiple employees, include a summary of the payments that lists the employee's name, SSN, and amount deducted.Instructions on Form 668-W state that employers must continue to withhold and make levy payments until they receive ________________________________________.Form 668‑D, Release of Levy/Release of Property from Levy. This means employers must not stop withholding when the payments match the total due the IRS stated on Part 1 of Form 668‑W.__________________ contains the final amount due from the employee and the employee's wages will be released from levy after the stated amount is paid. When the total amount of the levy due has been withheld and paid, the employer or the employee may consider contacting the IRS if a ____________________ has not been received.Form 668-DIf the employee named on Form 668-W is no longer employed by an employer when a Form 668‑W is received, what must the employer do?the employer must note on the reverse side of Part 3 that the employee is no longer employed by the employer. The employer must then return the form to the IRS.If employment terminates while a ______________ is in effect for an employee, the employer should notify the ________________________. Employers should also notify the __________ of the name and address of the employee's new employer, if known. The employer must deduct and remit any nonexempt amounts contained in severance or dismissal pay provided to the employee.IRS of the terminationThe IRS has ruled the following items may be subtracted from an employee's gross wages when calculating take-home pay:Federal, state, and local taxes, even if the amounts increase while a levy is in effect due to salary or tax rate increases or changes in the employee's Form W‑4employers failing to withhold and pay over amounts not exempt from levy after receiving Form 668‑W are liable for the full amount required to be withheld, __________________________________________.Any amount paid by the employer as a penalty will be credited against the taxes owed by the employee.plus interest from the date the wages were paid.the employer is liable for a penalty equal to____________________________ by the IRS after the failure to withhold and remit. This penalty is not applicable when there is a genuine dispute as to the amount to be withheld and paid or as to the legal sufficiency of the levy.50% of the amount recoverableEmployees who owe federal taxes may be able to avoid the imposition of a federal tax levy through a Payroll Deduction Agreement or an Online Payment Agreement with the IRS how?Under these agreements, the employee who owes taxes and the IRS agree on a certain amount of federal taxes owed and that the employee's employer will deduct an amount from the employee's wages each pay period and pay it over to the IRS until full payment is made.The Payroll Deduction Agreement is carried out when the _______________________________________(see the Resource Center's Tax Forms and Publications) to the employer with certain identifying information and the amount to be deducted each pay period.IRS submits Form 2159, Payroll Deduction Agreement_________________________ is the amount of an employee's wages remaining after all normal deductions in effect at the time a levy is received have been subtracted from the employee's gross pay.Take-home payThe IRS has ruled the following items may be subtracted from an employee's gross wages when calculating take-home pay:Increases in preexisting deductions beyond the employee's control, including those caused by increases in the employee's pay, such as elective deferrals of a certain percentage of salary and those caused by increases in the cost of benefits, such as health or life insurance premiums (but not including voluntary decisions to increase the deferral percentage or to change the type of coverage provided)________________ is the total amount received from the employer before any deductions are made.Gross payThe IRS has ruled the following items may be subtracted from an employee's gross wages when calculating take-home pay:Involuntary and voluntary deductions in effect before the employer received the levy, including child support withholding orders and other garnishments, elective deferrals, health and life insurance premiums, charitable donations, etc.The IRS has ruled the following items may be subtracted from an employee's gross wages when calculating take-home pay:Deductions instituted after a levy is received and made as a condition of employment, such as a required deduction for union dues in a union shop environment_____________ ________________ ______________ over all other garnishment or attachment orders, except for child support withholding orders in effect before the date the tax levy was received or that predate the receipt of the levy.Tax levies take priorityWhen more than one jurisdiction has levied an employee's wages for past due taxes and there are not enough nonexempt funds to satisfy them all, ________________________________________.levies are implemented in the order the employer receives them, unless otherwise instructed by the IRS.Once an employee's take-home pay has been determined, all but the exempt amount is subject to levy.Any payroll deductions initiated by the employee after the levy has been received by the employer must be deducted from the exempt amount when determining the employee's net pay (payment amount), unless the payroll deductions are required as a condition of employment.see picturesee pictureBankruptcy ordereach order is unique
can stop employers from withholding other involuntary deductions except for child support orders
can require an employee wage deduction be sent to a trusteeChild support orderdeductions are not stopped by a bankruptcy order
has priority over all other garnishments except for federal tax levies predating the original establishment date of the child support order
governed by the CCPA limits, or state limits that are more favorable to the employeeCreditor garnishmentalso known as a writ, income execution, or wage attachment
governed by state law and by the federal CCPA
usually the lowest in withholding priority of all other garnishmentsFederal administrative garnishmentnontax garnishment from any federal agency
can include federal loans in default
has priority over other garnishments served on the employer subsequently
child support orders served anytime have priority over federal administrative garnishments
federal tax levies take priority over federal administrative garnishments
governed by CCPA and Debt Collection Improvement Act limitsFederal tax levypriority over all other garnishments except child support orders established before the date of the levy
not subject to CCPA limits
amount exempt from the levy determined by IRS Publication 1494
can be stopped by a bankruptcy orderLocal tax levypriority over creditor garnishmentsState tax levypriority over local tax levies
priority over creditor garnishmentsStudent loan garnishmentchild support orders have priority, but no other priority guidance is given for federal student loan garnishment orders
state-issued student loan garnishment orders may contain specific instructions about priority of withholdingTrue or false: Garnishments or orders for child support withholding are treated differently since they may be ordered by a state child support enforcement agency rather than a court.True :Garnishments or orders for child support withholding are treated differently since they may be ordered by a state child support enforcement agency rather than a court.Creditor garnishments are governed by a joint federal/state program with more restrictions than are placed on child support wage withholding. Title III of the federal Consumer Credit Protection Act (CCPA) places restrictions on how the states may regulate creditor garnishments:On the amount that may be garnished
On the freedom to discharge an employee because the employee's wages have been garnishedFederal creditor garnishment: to repay a debt, the CCPA sets the maximum amount that can be garnished as the lesser of:25% of the employee's disposable earnings for the week; or
The amount by which the employee's weekly disposable earnings exceed 30 times the federal minimum hourly wage then in effect.If an employee is paid less frequently than weekly, the amount exempt from garnishment increases accordingly based on a multiple of the weekly amount., how is that determined?To determine the amounts, figure an amount proportionate to 30 times the federal minimum hourly wage by converting the weekly amount of $217.50 to an annual amount of $11,310 ($7.25 x 30 = $217.50; $217.50 x 52 weeks = $11,310).
For pay periods longer than weekly, divide $11,310 by the number of pay periods in a year to get the proportionate amount:
$435 for biweekly ($11,310 ÷ 26), $471.25 for semimonthly ($11,310 ÷ 24), and $942.50 for monthly ($11,310 ÷ 12).Ralph's disposable earnings for a biweekly pay period are calculated to be $1,000. His employer receives a child support withholding order from a state child support enforcement agency demanding $400 to be withheld from each paycheck to satisfy the order. Ralph is supporting another spouse and child, so the $400 is less than the 50% maximum for child support.Even though Ralph's employer is withholding $400 for the child support payment, Ralph's disposable earnings remain $1,000 under the CCPA. If Ralph's employer receives a creditor garnishment order for $500 while the child support withholding order is still in effect, nothing may be withheld for the garnishment because 40% of Ralph's disposable earnings ($400/$1,000) is already being withheld and the maximum of 25% (from table) is exceeded.Assume the same facts as in the previous example, except the child support withholding order is for $200 each biweekly pay period. With disposable earnings of $1,000 per pay period, 20% of Ralph's disposable earnings is withheld for the child support payment ($200 ÷ $1,000).That leaves 5% available to satisfy the garnishment order of $500 (25% maximum - 20% = 5%). Therefore, Ralph's employer must withhold $50 for the garnishment order (5% x $1,000).The amount subject to garnishment under the CCPA is calculated according to the current ____________________________________ rather than when the garnishment order is issued or when the wages were earned. This means any change in the minimum wage will affect the amount that can be garnished.federal minimum hourly wage when the employee's wages are payable,The federal garnishment maximum limiting deductions applies no matter how many garnishments are received for an employee. If the maximum is already being withheld when a second garnishment is received, __________________________________.nothing may be withheld for the second garnishment.If more than the maximum is withheld and the employee receives less than the required minimum wage because of the excess withholding, _______________________________________.the employer may be subject to penalties for violating the Fair Labor Standards Act.In determining an employee's disposable earnings, wages already subject to withholding for child support, tax levies, or bankruptcy orders are not considered deductions required by law. Therefore, they ____________________________when determining the maximum amount subject to garnishment.should not be subtracted from gross earningsCalculate Creditor Garnishment
When a creditor garnishment is received, an employer must calculate disposable earnings and consider the limit on what can be garnished in order to calculate how much should be remitted for the garnishment order each payday.Michele's disposable earnings for a week are $245 when her employer receives a garnishment order on January 9 requiring $300 to be withheld. Under the federal minimum wage, the maximum amount of Michele's disposable earnings that can be garnished is determined as follows:
Because $27.50 is less than $61.25, the lesser amount of $27.50 is deducted to satisfy the garnishment orderJosephine's disposable earnings for a semimonthly period are $550, when her employer receives a garnishment order on January 12 requiring that $150 be withheld. The maximum amount of Josephine's disposable earnings that can be garnished is determined as follows:$550.00 x 25%=$137.50
$550.00 - $471.25(from the Amount Subject to Garnishment table)=$78.75
Because $78.75 is less than $137.50, only $78.75 may be deducted to satisfy the garnishment order.James is a sales representative who receives a $500 weekly draw against commissions and has disposable earnings each week of $400. Commissions are paid monthly and result in $500 of disposable earnings for March after already-paid weekly draws are subtracted and deductions required by law are made. Each weekly draw and the monthly commission payment are separately subject to the CCPA's restrictions.Therefore, 25% of each week's disposable earnings from the draw ($400 x .25 = $100) may be garnished. Additionally, 25% of the disposable earnings from the commission payment ($500 × .25 = $125) may be garnished.Once an employee voluntarily declares bankruptcy or is found to be bankrupt by a court, the satisfaction of the employee's creditors is handled by a __________________ - _____________appointed by the court. Until the employer is notified by the bankruptcy court or the trustee to do otherwise, the employer should continue to withhold.bankruptcy trusteeOnce the employee's employer receives a bankruptcy order from the trustee under a court-approved plan requiring a certain amount of the employee's wages to be paid to the trustee to satisfy the employee's creditors, the employer ___________________________on any other garnishments against the employee except for child support withholding orders.must stop withholdingBankruptcy orders issued under____________________________take priority over any other claim against the employee's wages, including federal and state tax levies received before the bankruptcy order, other than child support withholding orders.Chapter XIII of the Bankruptcy ActIf an employer continues to withhold and remit in satisfaction of other withholding orders, what is will happen ?creditors may receive double payments and the employer may open itself to a lawsuit brought by the employee for the withheld wages.The only time an employer should continue to withhold for other garnishments is if the trustee specifically provides instructions to do so. If a creditor is not listed in the bankruptcy order, what mus the employer do?verify with the trustee before stopping the garnishment.DO NOT DISCHARGE Federal bankruptcy law prohibits employers from terminating employees..what happens if the employer does terminate?they become the subject of a bankruptcy proceeding.The Higher Education Act allows garnishment of employees' wages to repay delinquent student loans. Student loan garnishments are subject to the following restrictions:If the garnishment is issued by a state guaranty agency,___________________may be garnished to satisfy a delinquent student loan unless the employee consents in writing to a higher percentage.no more than 15% of an employee's disposable earningsEmployees may not be discharged or otherwise discriminated against because of a garnishment order to repay a student loan. True or False?True: Employees may not be discharged or otherwise discriminated against because of a garnishment order to repay a student loan.Student Loans: Employees must receive at ________________________begins and must be given a chance to work out a repayment schedule with the agency guaranteeing the loan to avoid garnishment.least 30 days' notice before withholdingIf the employee's wages are also subject to garnishments for other debts, there is no guidance as to the priority of a student loan garnishment. However, the Department of Education has allowed ________________________________.child support withholding orders to take priority over student loan garnishments.Employees who lose their jobs and become reemployed within ______________ after termination are given _______________ from their date of reemployment before a student loan garnishment order can be put into effect.12 monthsEmployers do not have to change their normal pay period to comply with a ____________________.student loan garnishment orderIf employers fail to comply with a lawful student loan garnishment order, what happens?they are liable for the amount not withheld from wages, as well as punitive damages, court costs, and attorneys' fees. Employers that unlawfully terminate employees because of a student loan garnishment may be ordered to reinstate the employee with back pay and to pay punitive damages and attorneys' fees.The definition of disposable earnings for a student loan is_____________________.gross wages less all deductions required by law and the cost of health insurance.The maximum amount that can be deducted to repay an outstanding student loan is the lesser of 15% of the employee's disposable earnings or the excess of the employee's weekly disposable earnings over 30 times the federal minimum wage, unless the employee consents to a higher percentage.Prior to the Deficit Reduction Act of 2005, the maximum that could be deducted under the provisions of the Higher Education Act was 10% of disposable earnings while under the Debt Collection Improvement Act the maximum deduction was 15% of disposable earnings. Orders in place before the enactment of the Deficit Reduction Act of 2005 will continue to have a maximum withholding of 10% of disposable earnings until a new order is issued.
math exampleEmployer's responsibilities with liens?Under the regulations, the Department of Education will send an employer of a delinquent debtor a wage garnishment order directing the employer to remit a portion of the debtor's wages. The employer will also be required to certify certain payment information about the debtor.The garnishment limits imposed by the CCPA apply to garnishments under the DCIA. Accordingly, the maximum amount that should be withheld under a DCIA garnishment order is the lesser of:The garnishment limits imposed by the CCPA apply to garnishments under the DCIA. Accordingly, the maximum amount that should be withheld under a DCIA garnishment order is the lesser of:The Department of Education and other federal agencies may issue multiple garnishment orders against a debtor so long as____________________________.the total amount garnished does not exceed the amount permitted under the CCPA.However, the employer knows both the debtor's disposable pay and the amount that may be currently withheld under other garnishment orders. Therefore, it is the employer's responsibility to ensure the total amount withheld and paid out for all garnishment orders—______________________________________including those issued under the authority of the DCIA—does not exceed the limits imposed by the CCPA.Federal agency withholding orders are issued on Form SF‑329B, United States Government Wage Garnishment Order (see the Resource Center's Tax Forms and Publications).the garnishment amount is limited to the lesser of 15% of disposable pay or the amount the weekly disposable pay exceeds 30 times the minimum wage.Employees may not be discharged, disciplined, or otherwise discriminated against because of a garnishment order to repay a federal agency loan: True or falseTrue: Employees may not be discharged, disciplined, or otherwise discriminated against because of a garnishment order to repay a federal agency loanEmployees must receive notice of a ________________before withholding is to begin and must be given a chance to contest the garnishment or work out a voluntary repayment schedule with the agency before the withholding order is sent to the employer.federal agency garnishmentThe garnishment provisions provide that ____________________will have priority over other withholding orders served later in time, except for family support orders. Because child support withholding orders and tax levies generally have priority over other garnishments, employers faced with this situation should contact the agency involved.administrative wage garnishmentsEmployees who lose their jobs involuntarily and become reemployed within _____________after termination are given ____________ from their date of reemployment to become current with their debt before a federal agency loan garnishment order can be put into effect.12 monthsEmployers do not have to change their normal pay period to comply with a federal agency loan garnishment order . true or falsetrue: Employers do not have to change their normal pay period to comply with a federal agency loan garnishment orderEmployers who fail to comply with a lawful federal agency loan garnishment order are_______________________________.liable for the amount not withheld from wages, as well as punitive damages, court costs, and attorneys liable for the amount not withheld from wages, as well as punitive damages, court costs, and attorneysEmployers are required to complete and return the certification form included in the garnishment package. What is in the package?The instructions with the garnishment will provide the time frame for completing the certification.mployers must begin withholding within_______________ following receipt of the order. The time period allowed will be found on the order.two pay cyclesEmployers are to promptly pay the amounts withheld. True or False?True: Employers are to promptly pay the amounts withheld.The definition of ______________for a federal agency order is gross wages less all deductions required by law and the cost of health insurance.disposable earningsThe Social Security Administration, Department of Education, and General Services Administration have issued regulations implementing the ______________________.DCIA for their agencies.When an amount is deducted for an attachment with priority, the amount deducted will reduce the deduction available for attachments with a lower priority.For example, an employee with disposable earnings of $1,000 and a child support deduction of $200 can only have a deduction for a creditor garnishment of $50.A _____________ _______________ is a voluntary agreement by an employee (assignor) to have a portion of the employee's __________________to a third party (assignee). Generally, employees assign wages to secure a debt.wage assignmentThe assignment gives the creditor an opportunity to recover the unpaid amount if the employee fails to repay the debt. A wage assignment also allows both the third party and the employee to avoid the time and _____________________.expense connected with court-run garnishment proceedings.hile wage assignments are not subject to federal law restrictions, the states regulate them to varying degrees. When state law does not regulate wage assignments, who does?they are governed by the general law of contracts as developed by state courts_________ ___________ is the amount left after all taxes, involuntary deductions, and voluntary deductions have been subtracted from gross pay. Sometimes, this may result in a ____________of zero.
Additional complications to the calculation of net pay are pretax deductions for contributions to deferred compensation plans and cafeteria plansNet payIn some situations, the employee's total deductions may exceed the employee's gross wages. This is called _______________. Employees with ___________________ must have their deductions reduced before the next payroll processing to no more than the amount of their gross pay, resulting in net pay of $0.00.negative net payMany employers will prioritize voluntary deductions in order of their importance to the organization....what is an example?For example, an employer may choose to have employee union dues deducted before taking a deduction for parking fees, realizing the possibility of deductions lower in priority could be put into arrears.All of the organization's employees' net pay, gross pay, and deductions are reported on the payroll register. Individual employee earnings and deductions are posted to an ________________, which accumulates all payments made during the year.Earnings RecordOnce an employee's total wages have been calculated and tax withholding and other deductions have been determined, an employer can pay an employee the difference—______________________.the employee's net pay.
Other sets by this creator
5.2 & 5.4 Deferred Compensation Plans (no 5.3)
22 termsImages
Amanda_Hamner4Teacher
5.1 Qualified Plans
6 terms
Amanda_Hamner4Teacher
4.4 Other Payments
38 terms
Amanda_Hamner4Teacher
4.3 Employer-Provided Benefits
48 termsImages
Amanda_Hamner4Teacher
Verified questions
1/3