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Chart for Determining Amount of Wages Subject to 15 Form

Q: What is the Chart For Determining Amount Of Wages Subject To 15?

The Chart For Determining Amount Of Wages Subject To 15 is a reference tool designed to help businesses understand how to calculate the wages subject to this specific tax rate. By using this chart, companies can easily determine their tax liabilities and ensure compliance with legal standards, making financial management more efficient.

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Form: CF34 – 15% (Rev. 1/22/19) CHART FOR DETERMINING AMOUNT OF WAGES SUBJECT TO 15% ATTACHMENT Below is a chart which explains how to determine the amount of wages subject to attachment. The applicable federal laws from which the information in the chart has been taken are: 10 Del.C. § 4913(a); 15 USC § 1673; 15 USC § 1677 and 29 USC § 206(a).1. The chart assumes that the wage earner is paid weekly. Use the following formulas for Step C (based on sample minimum wage of $8.25) for the following:If paid twice per month use: $536.25 ($247.50 x 2.16667) If paid every two weeks: $495.00 ($247.50 x 2) If paid monthly: $1072.49 ($247.50 x 4.3333)A.Calculate disposable earnings by subtracting from gross earning those items required by law to be deducted. For example:GROSS EARNINGS- Federal tax- State tax- FICA- City tax (if any) ______________________Equals disposable earnings B.Calculate 15% of disposable earnings.C.Subtract $247.50 (30 x $8.25 - the minimum wage) from the disposable earnings.D.The attached amount is the lesser of the figures calculated under B and C. EXAMPLE 1 – With attachable income An individual's gross earnings in a week are $312.00A. $312.00- 30.00 (est. Fed. tax) - 7.19 (est. State tax)- 22.95 (est. FICA)________________________$251.86 Disposable earnings B. 15% of $251.86 = $ 37.78C. $251.86 - $247.50 = $ 4.36D. $4.36 is less than $37.78 and is the amount attached. EXAMPLE 2 – With NO attachable income An individual's gross earnings in a week are $100.00A. $100.00- 7.00 (est. Fed. Tax)- 1.00 (est. State Tax)- 8.00 (est. FICA)________________________$ 84.00 Disposable earningsB.15% of $84.00 = $ 12.60C.$84.00 - $247.50 = - $ 163.50D. -$163.50 is less than $12.60; none of the wages can be attached.Its is very important that employers and creditors understand the attachment process because a common practice is to simply attach 15% of the gross wages. As the chart indicates, that is not correct because it is very possible that in any given pay period none of an individual's wages can be attached.

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