ADP Garnishments and Deductions 2

Question 1

In ADP Workforce Now, where would a payroll specialist typically set up a new employee wage garnishment?

Accepted Answer

Payroll > Deductions & Benefits > Garnishments

Answer

Payroll > Pay Statements

Answer

Process > Payroll > Garnishments

Answer

HR > Employee Profile > Deductions

Question 2

Which type of deduction is classified as a 'pre-tax' deduction that reduces an employee's federal taxable wages?

Accepted Answer

Section 125 cafeteria plan contribution

Answer

401(k) Roth contribution

Answer

Wage garnishment

Answer

Union dues

Question 3

What is a 'Creditor Garnishment' also commonly referred to as in payroll?

Accepted Answer

Income execution

Answer

Child support order

Answer

Student loan offset

Answer

Tax levy

Question 4

How should a payroll specialist handle an employee who voluntarily requests a deduction for a personal loan repayment to their employer?

Accepted Answer

Set it up as a voluntary deduction coded appropriately in ADP

Answer

Process it as a garnishment

Answer

Decline because employer loans cannot be deducted from payroll

Answer

Process it only after receiving a court order

Question 5

What is the typical employer administrative fee that states may allow for processing a wage garnishment?

Accepted Answer

$1 to $5 per payment

Answer

$0 — employers cannot charge fees

Answer

10% of the garnished amount

Answer

A flat $25 per order

Question 6

When processing student loan garnishments under the Higher Education Act, what is the maximum percentage of disposable pay that can be withheld?

Accepted Answer

15%

Answer

10%

Answer

25%

Answer

30%

Question 7

An employee presents a claim of exemption after a garnishment is served. What is the payroll specialist's immediate responsibility?

Accepted Answer

Forward the claim to legal counsel and await court instruction

Answer

Stop all garnishment withholding immediately

Answer

Continue withholding but hold funds pending court review

Answer

Notify the employee their claim has been accepted