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

When an employee has no other dependents and is 12 or more weeks behind on support payments, up to 65% of disposable earnings may be garnished for child support.

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

IRS Form 668-W (Notice of Levy on Wages, Salary, and Other Income) is served on employers to establish a continuous wage levy until the tax debt is resolved.

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

Voluntary deductions such as health insurance premiums, 401(k) contributions, and union dues are not legally required and therefore are not subtracted from gross wages when computing disposable earnings.

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

The CCPA protects from garnishment any disposable earnings up to 30 times the federal minimum hourly wage per week, providing a guaranteed floor of exempt earnings.

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

An employer who ignores or fails to honor a valid garnishment order can be held in contempt of court and may become personally liable for the full amount that should have been withheld.

(CPS) Certified Payroll Specialist Practice Test

(CPS) Certified Payroll Specialist Practice Test

CPS Garnishments & Levies 2