Final answer:
The maximum percentage that can be legally withheld from an employee's earnings is up to 50% to 65% of their disposable income, depending on their support obligations and the type of garnishment, according to the Consumer Credit Protection Act (CCPA). This is distinct from mandatory payroll taxes such as the 6.2% for Social Security and 1.45% for Medicare.
The correct opiton is not given.
Step-by-step explanation:
The maximum amount by a percentage that a legal order may direct the employer to withhold from an employee's earnings is dictated by federal or state law, depending on the type of debt or obligation.
For instance, when it comes to things like child support or alimony, the Consumer Credit Protection Act (CCPA) sets limits on wage garnishment,
which are typically up to 50% of an employee's disposable income if the employee supports another spouse or child, and up to 60% if they do not.
However, if the employee is supporting another spouse or child, the maximum withholding cannot exceed 55% to 65% of disposable income.
It's important to note that the options provided (10% of annual income, 25% of monthly earnings, 50% of disposable income, or 75% of total assets) do not universally apply to all forms of withholding and may not reflect actual legal limits.
In terms of payroll taxes, the mandatory contributions are 6.2% of wages for Social Security and 1.45% for Medicare, which are withheld by the employer.
The employer also contributes an equal amount. These deductions are separate from any other withholding that might be legally ordered, such as for child support or federal income tax levies.
The maximum percentage for wage garnishment varies based on the reason for the garnishment and is subject to legal limits designed to ensure employees retain enough of their income to meet basic living expenses.
The correct opiton is not given.