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

Roth 401(k) contributions are made on an after-tax basis, meaning they are deducted after federal income tax is calculated, unlike traditional 401(k) deferrals which are pre-tax.

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

Child support orders take legal priority; if funds are insufficient to cover both, child support is fully satisfied first, and the creditor garnishment receives only the remaining garnishable amount.

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

ADP's Garnishment Detail Report and deduction balance tracking features allow payroll specialists to monitor cumulative amounts withheld and remitted for each garnishment order.

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

Employers who fail to comply with a child support withholding order can be held personally liable for the amount that should have been withheld, plus potential fines.

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

Garnishment withholding should only cease when the employer receives an official release, satisfaction notice, or court order from the issuing agency — not based on employee requests alone.

ADP - ADP Certified Payroll Specialist Practice Test

ADP - ADP Certified Payroll Specialist Practice Test

ADP Garnishments and Deductions 3