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- How do I calculate the employee's net disposable income?
- Compute the gross amount that you owe to the employee for the pay period.
- If the employee took any advances, add those amounts back in.
- Deduct the amounts that are required by law, such as IRS income taxes, FICA, Social Security and L&I. If union membership or pension contribution is mandatory, deduct union dues and/or pension amounts.
- Do not deduct such amounts as car Payments, non-mandatory union dues, or voluntary savings deposits.
- The amount remaining is the employee's net disposable income. Now divide that amount by two, and that's the amount that is subject to withholding.
- After withholding the child support amount, go on and deduct any other amounts that you normally deduct from the employee's paycheck. These "voluntary deductions" are not subject to the 50% limit.