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
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 |
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