John Jenkins earns $1,290 per week. The deductions from his pay were:FIT$111.00FICA-OASDI79.98FICA-HI18.71State income tax31.00State disability insurance9.03Credit union deduction40.00Health insurance premium47.50Charitable contribution5.00John's disposable earnings would be:$1,290.00 - $111.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,040.28Example 6-3Huffman Company has a child support order outstanding on one of its employees (Charles Suffert-$170 per week). Charles Suffert's disposableincome is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional$237.50 out of Suffert's pay.Lesser of:25% x $950$237.50or$950 - (30 x $7.25)= $732.50Kalen O'Brien earned $730 this week. The deductions from her pay were as follows:FIT$66.00FICA-OASDI45.26FICA-HI10.59State income tax36.50State disability insurance8.61Health insurance premium19.50Credit union contribution35.00United Fund contribution5.00O'Brien's employer just received a garnishment order (credit card debt of $3,500) against her pay. Compute the following:round your answers to the nearest cent.a. O'Brien's disposable earnings$b. The amount of her pay subject to the garnishment$

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a. O'Brien's disposable earnings b. The amount of her pay subject to the garnishment

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 64P

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Question

100%

John Jenkins earns $1,290 per week. The deductions from his pay were:
FIT
$111.00
FICA-OASDI
79.98
FICA-HI
18.71
State income tax
31.00
State disability insurance
9.03
Credit union deduction
40.00
Health insurance premium
47.50
Charitable contribution
5.00
John's disposable earnings would be:
$1,290.00 - $111.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,040.28
Example 6-3
Huffman Company has a child support order outstanding on one of its employees (Charles Suffert-$170 per week). Charles Suffert's disposable
income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional
$237.50 out of Suffert's pay.
Lesser of:
25% x $950
$237.50
or
$950 - (30 x $7.25)
= $732.50
Kalen O'Brien earned $730 this week. The deductions from her pay were as follows:
FIT
$66.00
FICA-OASDI
45.26
FICA-HI
10.59
State income tax
36.50
State disability insurance
8.61
Health insurance premium
19.50
Credit union contribution
35.00
United Fund contribution
5.00
O'Brien's employer just received a garnishment order (credit card debt of $3,500) against her pay. Compute the following:
round your answers to the nearest cent.
a. O'Brien's disposable earnings
$
b. The amount of her pay subject to the garnishment
$

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