An employee has a family support order demanding $500 per weekly pay be with-held. If the employee has a gross taxable income of $1000, can the full amount be deducted on this pay?

Question

Quizplus · Accepted Answer

The Consumer Credit Protection Act (CCPA) limits the amount of an employee's earnings that can be garnished in any one week. For child support and alimony, up to 50% of an employee's disposable earnings may be garnished if the employee is supporting another spouse or child, and up to 60% if not. An additional 5% may be garnished for support payments more than 12 weeks in arrears. Therefore, without knowing the specifics of the employee's situation, it's clear that not the full $500 (or 50% of the gross income) can be deducted if it exceeds these federal limits, indicating that the full amount cannot automatically be deducted based on the information provided.

An Employee Has a Family Support Order Demanding $500 Per