ADP Garnishments and Deductions 3

Question 1

Which deduction type must always be withheld AFTER taxes are calculated, making it a 'post-tax' deduction?

Accepted Answer

Roth 401(k) contribution

Answer

Health Savings Account (HSA) employer contribution

Answer

Traditional 401(k) elective deferral

Answer

Dependent care FSA contribution

Question 2

What happens in ADP if an employee's pay is insufficient to cover both a child support order and a creditor garnishment in the same pay period?

Accepted Answer

The child support order is paid first; the creditor garnishment receives remaining eligible funds

Answer

Both garnishments are prorated equally

Answer

The creditor garnishment is paid first as it was received first

Answer

Neither garnishment is paid until full amounts can be satisfied

Question 3

Which ADP feature allows payroll specialists to track the total amount withheld and remitted for a specific garnishment order over time?

Accepted Answer

Deduction Balance Tracking / Garnishment Detail Report

Answer

Employee Pay Statement History

Answer

General Ledger Export

Answer

Payroll Register Summary

Question 4

What is the penalty risk for an employer who fails to withhold a court-ordered child support garnishment from an employee's wages?

Accepted Answer

The employer may be held liable for the amount that should have been withheld

Answer

The employer receives a warning letter only

Answer

The employee's wages are frozen

Answer

No penalty applies as it is the employee's responsibility

Question 5

In ADP, when should a payroll specialist stop withholding for a garnishment order?

Accepted Answer

Only when instructed by the issuing agency or court via a release or satisfaction notice

Answer

After 12 months regardless of balance

Answer

When the employee requests the garnishment be stopped

Answer

After the maximum CCPA limit is reached in a single pay period

Question 6

What is the purpose of the 'income withholding order' (IWO) form standardized by the federal government?

Accepted Answer

To provide a uniform format for child support and alimony withholding orders sent to employers

Answer

To notify the IRS of employee wages for tax purposes

Answer

To authorize voluntary payroll deductions for benefits

Answer

To document employer compliance with minimum wage laws

Question 7

Under ADP best practices, what should a payroll specialist do when two garnishment orders with the same priority type are received for the same employee?

Accepted Answer

Process them in the order they were received, prorating if funds are insufficient

Answer

Process the one with the larger dollar amount first

Answer

Reject the second order and return it to the issuing agency

Answer

Process both simultaneously regardless of available disposable earnings