What are the steps for processing a withholding order?

• A. Identify disposable income or wage base for a withholding order; create a deduction recipient; record the details of the withholding order
• B. Record the details of the withholding order; identify disposable income; create a deduction recipient
• C. Identify disposable income or wage base for a withholding order; create a deduction recipient; record the details of the withholding order
• D. Identify wage base; record the details; create a deduction recipient

Answer: (A)

When processing a withholding order, you start by determining how much can be withheld from the employee’s pay. This means identifying the disposable income or wage base—the portion left after mandatory deductions and withholdings—so you know the actual amount (or percentage) that may be taken.

Next, you create a deduction recipient in the payroll system. This sets up the creditor or entity that will receive the withheld funds, ensuring there is a proper recipient linked to the deduction.

Finally, you record the details of the withholding order in the system. This captures all required information ( creditor, case number, amount or percentage, duration, limits, etc.) so the deduction is applied correctly in payroll runs and remains auditable.

Other sequences skip the essential step of identifying the allowable withholding amount first or attempt to record details before establishing the correct recipient, which can lead to incorrect or noncompliant processing.