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Chart for Determining Amount of Wages Subject to 7 Percent Form

Q: What is the Chart For Determining Amount Of Wages Subject To 7 Percent?

The Chart For Determining Amount Of Wages Subject To 7 Percent is a tool designed to help businesses calculate the wages that are subject to a 7% tax rate. This chart simplifies the process of identifying taxable wages, ensuring compliance with tax regulations. By using this chart, businesses can avoid potential penalties and streamline their payroll processes.

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Form: CF34 - 7% (Rev. 1/22/19) CHART FOR DETERMINING AMOUNT OF WAGES SUBJECT TO 7% 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 a 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 7% 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 $337.00A. $337.00- 32.50 (est. Fed. tax) - 9.76 (est. State tax)- 26.92 (est. FICA)________________________$267.82 Disposable earnings B. 7% of $267.82 = $ 18.74C. $267.82 - $247.50 = $ 20.32D. $18.74 is less than $20.32 and is the amount attached. EXAMPLE 2 – With NO attachable income An individual's gross earnings in a week are $100.00A. $100.00- 10.00 (est. Fed. Tax)- 3.00 (est. State Tax)- 7.00 (est. FICA)________________________$ 80.00 Disposable earningsB.7% of $80.00 = $ 5.60C. $80.00 - $247.50 = -$167.50D. -$167.50 is less than $5.60; 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 7% 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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