Question: help please. Chpt 6 HW - Set 1 Hide or show questions eBookShow Me HowCalculator Example 6-2 John Jenkins earns $1,290 per week. The deductions

help please.

Chpt 6 HW - Set 1 Hide or show questions eBookShow Me HowCalculator Example 6-2 John Jenkins earns $1,290 per week. The deductions from his pay were: FIT$111.00 FICAOASDI79.98 FICAHI18.71 State income tax31.00 State disability insurance9.03 Credit union deduction40.00 Health insurance premium47.50 Charitable contribution5.00 Johns 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 Garrett Hudson earned $895 this week. The deductions from his pay were as follows: FIT$86.00 FICAOASDI55.49 FICAHI12.98 State income tax27.75 State disability insurance6.71 Health insurance premium31.00 Credit union contribution50.00 United Fund contribution10.00 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 $????.???

Feedback a. Disposable earnings are the earnings remaining after withholding for federal and state income taxes, FICA taxes, state unemployment and disability taxes, and deductions required for state employees' retirement systems. b. The maximum amount of disposable earnings that can be garnished to repay a debt is the lesser of: 25% of disposable earnings for the week; or the amount by which the disposable earnings for the week exceed 30 times the federal minimum wage rate. Check My Work2 more Check My Work uses remaining. Next

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!