How much can the employer deduct for insurance?
A11: DOR follows the federal Consumer Credit Protection Act (CCPA) limits 15 USCS § 1673(b) for deductions of child and medical support. The CCPA limits wage withholding to 50% of disposable earnings in the case of an employee who is supporting a second family in his or her household and 60% in the case of an employee without a second family. The limits are increased to 55% and 65% respectively if the employee owes arrears that are 12 weeks or more past due. Deduction amounts are based on an employee’s aggregate disposable weekly earnings. The aggregate disposable weekly earnings are the net income remaining after making mandatory deductions such as state, federal, local, Social Security and Medicare taxes. Additional information on CCPA limits can be obtained by calling our Employer Services Group at 800-332-2733 or 617-660-1234. If an employee expresses concern over the cost of the deductions for both child support and medical support, she or he can call DOR at the number noted above
