Final answer:
Deductions from an employee's wages can include taxes such as income tax, social security contributions, and insurance. There are six categories that deductions fall under, and the maximum percentage that can be deducted depends on the specific tax or insurance.
Step-by-step explanation:
Deductions from an employee's wages can include taxes such as income tax, social security contributions, and insurance. There are six categories that deductions fall under: federal income tax, state income tax, social security tax, Medicare tax, health insurance premiums, and retirement contributions.
The maximum percentage that can be deducted depends on the specific tax or insurance. For example, federal income tax can vary depending on the individual's income and tax bracket. Social security and Medicare taxes have fixed percentages of 6.2% and 1.45% respectively, while health insurance premiums and retirement contributions may vary depending on the specific plan or program.