Who determines the maximum amount that can be withheld from an employee's wages for child or spousal support?

The correct answer is that individual states determine the maximum amount that can be withheld from an employee's wages for child or spousal support. Each state has its own guidelines and regulations governing wage garnishments for support payments, which reflect the varying circumstances and costs of living across different regions.

States have the authority to create specific laws and formulas to determine how much can be deducted from an employee’s wages, ensuring that it is done fairly and within the individual’s means to maintain a reasonable standard of living while fulfilling support obligations. These state laws must comply with federal guidelines, but the primary responsibility for setting the withholding limits lies at the state level.

This differentiation is crucial because the IRS handles federal tax-related withholdings and has no jurisdiction over support payments. Similarly, the Fair Labor Standards Act (FLSA) primarily deals with wage and hour laws, while the Consumer Credit Protection Act (CCPA) sets general limits on garnishment but does not specify the amounts for child or spousal support, leaving those decisions to individual states.