Withholding Calculations Disposable Income = gross pay ...
Withholding Calculations
There are two basic steps to determine how much to withhold for child support from an employee's income: calculating disposable income and calculating allowable disposable income.
1. Disposable Income = gross pay - mandatory deductions.
Disposable income is the amount of earnings remaining after subtracting certain mandatory deductions from an employee's gross pay.
Mandatory deductions include federal, state and local taxes; unemployment insurance; workers' compensation insurance; state employee retirement deductions; other deductions determined by state law.
Note that disposable income is not necessarily the same as net pay. An employee may have a deduction taken from his pay that is not mandatory, such as union dues or a car loan payment.
2. Allowable Disposable Income = disposable income x CCPA % limit
Allowable disposable income is the maximum available for child support withholding. In most cases, the amount ordered to be withheld will be less than the allowable disposable income amount, and the ordered amount can be withheld without any problem. Even if the withholding order specifies a higher payment, the allowable disposable income is the most that may be withheld.
Section 552.608 of the Support and Parenting Time Enforcement Act has been amended to reflect new withholding limitations. The new limit for current support, past due support, fees, and health care coverage premiums effective against a payer shall not exceed 50% of the payer's net earnings.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- combined disposable income worksheet as defined in rcw
- chapter 13 calculation of your disposable income
- withholding calculations disposable income gross pay
- fact sheet 30 united states department of labor
- withholding limitations worksheet for support and medical
- chapter 13 calculation of your disposable income 12 14
- official form 122c 2
- wage garnishment worksheet disposable pay
Related searches
- calculating disposable income for garnishment
- disposable income calculator garnishments
- calculate disposable income for garnishment
- disposable income for garnishment
- determining disposable income for garnishment
- disposable income calculator
- disposable income calculator for garnishment
- irs disposable income calculator
- disposable income us 2019
- us disposable income chart
- per capita disposable income us
- disposable income by state