What are disposable earnings, and how does an employer calculate them?
A. Disposable earnings are also known as “take-home” or “net” earnings. These are the employee’s earnings that remain after deductions are made, as required by law, including, but not limited to, federal and state income tax withholdings. Back to Top Q. What should an employer do upon receipt of Orders/Notices to Withhold Income for Child Support issued by different child support offices (including ours) that are located in different states* and pertain to the same employee? A. If the child support requested is for the same child(ren), please contact our office immediately. If the child support requested is for different children, then the employer must honor all Orders/Notices to Withhold Income for Child Support and give priority to the current monthly child support obligations for the children. If disposable earnings remain after the current support obligations are withheld (without exceeding the employee’s 50% disposable earnings threshold), then the employer should make further de