Fundamental Payroll Involuntary and Voluntary Deductions Flashcards
7 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamental Payroll Involuntary and Voluntary Deductions flashcards as text
Under the CCPA, what is the maximum garnishment percentage of disposable earnings for child support when the employee IS supporting another spouse or dependent and is NOT in arrears?
Answer: 50%
CCPA allows up to 50% of disposable earnings for child support when the employee supports a current spouse or dependent and is not more than 12 weeks in arrears.
Which federal law establishes limits on the amount of employee wages that can be garnished and prohibits termination due to a single garnishment?
Answer: Consumer Credit Protection Act (CCPA)
Title III of the CCPA limits wage garnishment amounts and protects employees from discharge solely because their wages are garnished for one debt.
Which of the following correctly defines 'disposable earnings' for garnishment calculation purposes?
Answer: Gross earnings minus legally required deductions
Disposable earnings equal gross wages minus only legally required deductions such as federal, state, and local income taxes and mandatory retirement contributions.
For creditor garnishments, CCPA protects a weekly floor equal to how many times the federal minimum wage?
Answer: 30 times
Employees must retain at least 30 times the federal hourly minimum wage per week, forming an income floor that cannot be touched by creditor garnishments.
An employee's disposable earnings are $500 per week. The federal minimum wage is $7.25/hour. What is the maximum creditor garnishment amount?
Answer: $125.00
The lesser of 25% of $500 ($125) or the amount above 30x $7.25 ($500 - $217.50 = $282.50) is $125, which is the maximum garnishable amount.
When an employer has multiple garnishment orders for the same employee, which type generally holds the highest priority?
Answer: Child support and alimony orders
Child support and alimony orders (Title IV-D orders) are granted priority over other garnishment types under federal law to protect dependent family members.
Which of the following is correctly classified as an involuntary deduction?
Answer: Court-ordered creditor wage garnishment
A creditor wage garnishment is an involuntary deduction because it is mandated by a court order and the employee has no choice in the matter.
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