FPC Chapter 2.7 Exam | Questions with 100%
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Terms in this set (36)
An employee earned $1,000.00 $636.80
monthly prior to April 1 and has an
IRS levy on wages. On April 1, the $1,200.00 - $393.20 - $120.00 - $50.00 = $636.80
employee's salary increases to
$1,200.00 per month. The salary and
deductions processed before and
after April 1 are shown in the table
below.
Item Amt before April 1 Amt after
April 1
Salary $1,000.00 $1,200.00
Tax withholding $328.50 $393.20
401(k) (10% of salary) $100.00
$120.00
Employee stock plan $50.00 $50.00
Calculate the employee's take-
home pay after April 1 for the
federal tax levy.
,An employee's disposable pay is C. Federal tax levy
$750.00. Deductions include orders
received in the following order: **A federal tax levy has priority over all
$175.00 federal tax levy, a $125.00 garnishments except child support withholding
levy for unpaid local property orders that pre-date (were established before)
taxes, $75.00 for a state tax levy, the federal tax levy.**
and a $50.00 for a creditor
garnishment. Which wage
attachment has priority?
A. Property tax levy
B. State tax levy
C. Federal tax levy
D. Creditor garnishment
An employee earns $1,343.75 $473.77
semimonthly, claims single, 1
allowance. The IRS exempts $431.25 $1343.75 - $431.25 - $438.73 = $473.77
each pay period for a federal levy.
The employee's combined
withholding for federal income,
social security, and Medicare taxes
is $438.73. The employee has no
other deductions. The employee
owes $1,200.00 in back taxes. What
is the maximum deduction for the
federal levy each pay period?
, An employee has a federal tax levy, D. Bankruptcy order
a state tax levy, and a creditor
garnishment in effect when a **Order of Importance**
bankruptcy order is received. Which 1. Child support orders *
wage attachment takes 2. Bankruptcy orders
precedence? 3. Federal administrative garnishments
4. Federal tax levies *
A. Federal tax levy 5. Student loan garnishments
B. State tax levy 6. State tax levies
C. Creditor garnishment 7. Local tax levies
D. Bankruptcy order 8. Creditor garnishments
An employee earns $860.00 $759.21
semimonthly. Deductions include
$35.00 for federal income tax, $860.00 - $35.00 - $65.79 = $759.21
$65.79 for social security and
Medicare taxes, and $100.00 for Disposable pay - Does not include involuntary
court-ordered child support Deductions
payments. Calculate the employee's
semimonthly disposable pay.
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (36)
An employee earned $1,000.00 $636.80
monthly prior to April 1 and has an
IRS levy on wages. On April 1, the $1,200.00 - $393.20 - $120.00 - $50.00 = $636.80
employee's salary increases to
$1,200.00 per month. The salary and
deductions processed before and
after April 1 are shown in the table
below.
Item Amt before April 1 Amt after
April 1
Salary $1,000.00 $1,200.00
Tax withholding $328.50 $393.20
401(k) (10% of salary) $100.00
$120.00
Employee stock plan $50.00 $50.00
Calculate the employee's take-
home pay after April 1 for the
federal tax levy.
,An employee's disposable pay is C. Federal tax levy
$750.00. Deductions include orders
received in the following order: **A federal tax levy has priority over all
$175.00 federal tax levy, a $125.00 garnishments except child support withholding
levy for unpaid local property orders that pre-date (were established before)
taxes, $75.00 for a state tax levy, the federal tax levy.**
and a $50.00 for a creditor
garnishment. Which wage
attachment has priority?
A. Property tax levy
B. State tax levy
C. Federal tax levy
D. Creditor garnishment
An employee earns $1,343.75 $473.77
semimonthly, claims single, 1
allowance. The IRS exempts $431.25 $1343.75 - $431.25 - $438.73 = $473.77
each pay period for a federal levy.
The employee's combined
withholding for federal income,
social security, and Medicare taxes
is $438.73. The employee has no
other deductions. The employee
owes $1,200.00 in back taxes. What
is the maximum deduction for the
federal levy each pay period?
, An employee has a federal tax levy, D. Bankruptcy order
a state tax levy, and a creditor
garnishment in effect when a **Order of Importance**
bankruptcy order is received. Which 1. Child support orders *
wage attachment takes 2. Bankruptcy orders
precedence? 3. Federal administrative garnishments
4. Federal tax levies *
A. Federal tax levy 5. Student loan garnishments
B. State tax levy 6. State tax levies
C. Creditor garnishment 7. Local tax levies
D. Bankruptcy order 8. Creditor garnishments
An employee earns $860.00 $759.21
semimonthly. Deductions include
$35.00 for federal income tax, $860.00 - $35.00 - $65.79 = $759.21
$65.79 for social security and
Medicare taxes, and $100.00 for Disposable pay - Does not include involuntary
court-ordered child support Deductions
payments. Calculate the employee's
semimonthly disposable pay.
