Question

1. Would it be a violation of the Consumer Credit Protection Act to suspend, demote, or transfer an employee who is subject to a garnishment?

2. Freisleven Corporation has undertaken a cost study of its operations. One of the costs of major concern to the company is the total cost of labor, particularly the cost of employee benefits. Prepare a list of the different kinds of costs that a company might incur as part of its "total package" salary cost.

3. If a salaried exempt employee was paid twice (direct deposit) for one pay period and the company was unable to recover the funds, what options are avail- able to the company to correct this overpayment.

4. In Philadelphia, Pennsylvania, most workers are subject to three income taxes upon their earnings— federal, state, and city. Should an employer in Philadelphia record the liability for the withholding of all three income taxes in one liability account such as Income Taxes Payable?

Answer 1

Answer: 1

True. It would be a violation of the Consumer Credit Protection Act to suspend, demote, or transfer an employee who is subject to a garnishment. an employer cannot discharge an employee only because of the reason that the employee’s wage is subject to garnishment for a single indebtedness.

Answer: 2

a list of the different kinds of costs that a company might incur as part of its "total package" salary cost may include:

• 401K
• Vacation time
• Medical Insurance
• Overtime pay
• Tuition reimbursement
• Dependant care
• Commuting/parking reimbursement
• Dental/Vision insurance

Answer: 3

It is the responsibility of the company to discuss the issue with the employee. Employee should be asked politely to repay the overpaid amount without any kind of penalty. Moreover, the employee should be given an option to repay the amount in instalment if he is not capable to pay the amount at a time. It is unethical on the part of company to take back the money from the account without the permission of accountholder. Other option that can be used by the company is ‘stop payment’ to hold the extra direct deposit.

Answer: 4

No. an employer in Philadelphia should not record the liability for the withholding of all three income taxes in one liability account such as Income Taxes Payable