Final answer:
The maximum authorized deduction of salary for loan recovery is typically 25% of disposable earnings, as per the federal Consumer Credit Protection Act, though this can vary based on the nature of the debt and local laws. Payroll deductions like Social Security, Medicare, and income taxes are standard and unrelated to debt recovery.
Step-by-step explanation:
The maximum percentage for authorized deduction of salary for the recovery of advances, loans, or adjustments of overpayment is determined by specific laws and regulations which can vary by jurisdiction.
In the United States, for example, under the federal Consumer Credit Protection Act (CCPA), the maximum that can be deducted from an employee's earnings is 25% of their disposable earnings or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage, whichever is less. This applies unless a higher percentage is authorized by law for certain types of debts such as federal taxes or child support.
However, in the context of payroll taxes and other deductions such as Social Security (6.2%), Medicare (1.45%), and federal and state taxes (15%), these are not related to loan recovery but are standard deductions made from an employee's gross annual income. Additional revenue for Social Security, for instance, could be addressed by altering the percentage or cap of these payroll taxes.