This Act limits the maximum payroll deduction from an employee’s wages for spouse or child support to 60% of his or her disposable earnings, or 50% if the employee is also supporting another spouse or children. Disposable earnings are calculated by subtracting all government-mandated deductions from an employee’s gross pay, such as social security, Medicare, income taxes of all kinds, and any unemployment or disability insurance. Deductions that are chosen by the employee, such as medical insurance deductions, are not included in the disposable earnings calculation.
Consumer Credit Protection Act