CPP Module 3 Flashcards
Deductions and Net Pay
Child Support Remittance Time Frame
Within 7 business days after deduction is made.
Child Support Deductions begin
A withholding order must be put into effect according to state requirements
Employees complete Form 668-W parts…
3,4, and 5. Must be returned to employer within 3 days.
Maximum Child Support Deduction
50% or 55% for those with other dependents, 60% or 65% with no other dependents. Arrears vs. Non Arrears.
Maximum Creditor garnish amount
lesser of either 25% of disposable earnings, or the amount by which the employee’s weekly disposable earnings exceed 30x minimum wage.
Maximum federal agency garnishment amount
lesser of 15% of disposable earnings or the amount by which the employee’s weekly disposable earnings exceed 30x minimum wage.
Maximum student loan garnishment amount
lesser of 15% of disposable earnings or the amount by which the employee’s weekly disposable earnings exceed 30x minimum wage.
Who limits payroll deductions
FSLA limits deductions an employer can make w/o employee authorization, and limits what deductions can take an employee below minimum wage
What amounts are subject to a federal tax levy?
Take home pay less the exempt amount from Publication 1494
What are disposable earnings?
gross earnings less all deductions required by law
What is Form 668-W?
Notice of Levy on Wages, Salary, and Other Income
What is e-IWO?
electronic income withholding order process. Involves sharing information electronically between state child support and employers.
What is Take Home Pay?
Used for federal tax levys. Employee’s gross earnings less all deductions in place at the time the levy is received.
What stops a tax levy deduction?
Form 668-D issued by the IRS.
Who figures a bankruptcy deduction?
The Bankruptcy Trustee
