What is the amount of child support that will be withheld from his paycheck?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Denton Distributing has received a child support order from its state’s department of child support services mandating withholding from Bill’s paycheck. Based on the order, the withholding is $200 per week, with a maximum of 50% of disposable income. Bill’s income is above his state’s level for minimum income allowance. Bill’s standard paycheck (before garnishment) shows:
Gross salary—$600
Tax withholding—$100
Health insurance—$150
401(k) contribution—$300
What is the amount of child support that will be withheld from his paycheck?
$200
$175
$0
$250
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