Example 6 1 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 Garrett Hudson earned $895 this week The deductions from his pay were as follows FIT $96 00 FICA OASDI 55 49 FICA HI 12 98 State income tax 27 75 State disability insurance 6 71 Health insurance premium 31 00 Credit union contribution 50 00 United Fund contribution 10 00 Hudson's employer just received a garnishment order (credit card debt of $2,140) against his pay Compute the following Round your answers to the nearest cent a Hudson's disposable earnings $ b The amount of his pay subject to the garnishment $

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Question: Example 6-1 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

Example 6-1

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

Garrett Hudson earned $895 this week. The deductions from his pay were as follows:

FIT	$96.00
FICA-OASDI	55.49
FICA-HI	12.98
State income tax	27.75
State disability insurance	6.71
Health insurance premium	31.00
Credit union contribution	50.00
United Fund contribution	10.00

Hudson's employer just received a garnishment order (credit card debt of $2,140) against his pay. Compute the following:

Round your answers to the nearest cent.

a. Hudson's disposable earnings	$
b. The amount of his pay subject to the garnishment	$

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