Ross is a full-time employee in Provo,Utah,who earns $42,000 annually,paid semimonthly.His federal income tax is $155.00.What is the maximum amount that may be withheld from his pay for a child-support garnishment,assuming he is not in arrears? (Do not round intermediate calculations,only round final answer to two decimal points.Utah has a 5% flat tax. )

Question

Quizplus · Accepted Answer

To calculate the maximum amount that may be withheld for a child-support garnishment, we need to use the following formula:

Maximum withholding = disposable earnings × maximum withholding percentage

where disposable earnings = gross pay − (federal income tax + state tax)

From the information given in the question, we know that:

- Ross earns $42,000 annually, so his gross pay per semi-monthly period is $1,750 ($42,000 ÷ 24).
- His federal income tax is $155.00 per semi-monthly period.
- Utah has a flat state tax rate of 5%, so his state tax per semi-monthly period would be $87.50 ($1,750 × 0.05).

Therefore, his disposable earnings per semi-monthly period would be:

$1,750 − ($155.00 + $87.50) = $1,507.50

Now, we need to determine the maximum withholding percentage for child support in Utah. According to the Utah Office of Recovery Services, the maximum withholding percentage is based on the number of dependents and varies from 25% to 50% of disposable earnings. Assuming that Ross has one dependent, the maximum withholding percentage would be 25%.

Therefore, the maximum amount that may be withheld for child support garnishment would be:

$1,507.50 × 0.25 = $376.88

Note that this is the absolute maximum that may be withheld; the actual amount will depend on any other wage garnishments or deductions that Ross may have.

Ross Is a Full-Time Employee in Provo,Utah,who Earns $42,000 Annually,paid