CPS Garnishments & Levies 2

Question 1

For child support garnishments, what is the maximum percentage of disposable earnings that can be withheld when the employee is NOT supporting another spouse or child and is MORE than 12 weeks in arrears?

Accepted Answer

65%

Answer

50%

Answer

55%

Answer

60%

Question 2

Which IRS form is issued to an employer to initiate a continuous wage levy for unpaid federal taxes?

Accepted Answer

Form 668-W

Answer

Form W-4

Answer

Form 941

Answer

Form 1099-MISC

Question 3

Which of the following voluntary deductions is NOT subtracted when calculating an employee's disposable earnings for CCPA garnishment purposes?

Accepted Answer

Employer-sponsored health insurance premiums paid by the employee

Answer

Federal income tax withholding

Answer

Employee Social Security (FICA) contributions

Answer

Medicare tax withholding

Question 4

What is the minimum weekly earnings amount that is always exempt from an ordinary creditor garnishment under the CCPA, regardless of other calculations?

Accepted Answer

30 times the federal minimum wage

Answer

20 times the federal minimum wage

Answer

25 times the federal minimum wage

Answer

40 times the federal minimum wage

Question 5

What consequence may an employer face for failing to comply with a valid court-ordered garnishment?

Accepted Answer

Potential personal liability for the amount that should have been withheld

Answer

A verbal warning from the court with no financial penalty

Answer

Only the employee faces legal consequences for non-payment

Answer

The garnishment order is automatically voided after 30 days of non-compliance

Question 6

A student loan Administrative Wage Garnishment (AWG) issued by the Department of Education can withhold a maximum of what percentage of an employee's disposable pay?

Accepted Answer

15%

Answer

10%

Answer

20%

Answer

25%

Question 7

When an employee's disposable earnings are already at the CCPA maximum garnishment limit due to a child support order, how should a subsequently received creditor garnishment be handled?

Accepted Answer

Hold it in queue and begin withholding only when capacity becomes available

Answer

Apply it immediately by exceeding the CCPA limits since two separate orders exist

Answer

Return it to the issuing court as legally unenforceable

Answer

Split available withholding capacity equally between both orders