APA Garnishments & Wage Deductions 3

Question 1

All states require employers to report new hires to a state directory primarily to support which garnishment-related function?

Accepted Answer

Child support income withholding order issuance

Answer

Creditor garnishment enforcement

Answer

Federal tax levy processing

Answer

Student loan default collection

Question 2

When calculating the garnishable amount, the CCPA's 30x minimum wage floor means that an employee's disposable earnings must exceed this floor before any creditor garnishment can occur. If the federal minimum wage is $7.25/hour, what is the weekly protected floor?

Accepted Answer

$217.50

Answer

$145.00

Answer

$181.25

Answer

$290.00

Question 3

An employer receives a lump-sum payment order directing that a bonus be withheld for child support. What percentage of the lump-sum bonus is typically subject to withholding?

Accepted Answer

Up to 100% of the bonus depending on the order and arrears owed

Answer

The same CCPA percentage limits that apply to regular wages

Answer

No lump sums are subject to child support withholding

Answer

A flat $500 maximum per occurrence

Question 4

Under which circumstance should an employer stop withholding under an income withholding order for child support?

Accepted Answer

When the employer receives a notice to terminate the withholding from the issuing agency or court

Answer

When the employee requests it in writing

Answer

After 26 weeks of continuous withholding

Answer

When the employee files for bankruptcy

Question 5

Which statement about state garnishment laws is accurate?

Accepted Answer

If state law provides greater protection to the employee than federal CCPA limits, the employer must follow state law

Answer

States cannot enact laws more protective than the CCPA

Answer

Federal law always supersedes any state garnishment protection

Answer

States may only reduce CCPA protections, never increase them

Question 6

An employee has two creditor garnishments. The first was received March 1 and the second March 15. The maximum combined creditor withholding is $100/week. How should the employer apply the garnishments?

Accepted Answer

Apply the full $100 to the first garnishment until satisfied, then begin the second

Answer

Split $50 to each creditor every pay period

Answer

Pay the creditor with the higher balance first

Answer

Apply both simultaneously pro-rata based on total debt amounts

Question 7

For payroll compliance purposes, how long must employers generally retain garnishment orders and related withholding records?

Accepted Answer

At least 3 years after the last payment is made

Answer

1 year after the order is satisfied

Answer

Until the employee is terminated only

Answer

Indefinitely, with no minimum set by federal law