WITHHOLDING LIMIT The amount withheld for support may not exceed fifty percent (50%) of the employee's/income recipient's net wages or other income. (T.C.A. § 36-5-501(a)(1)) It is the employer's responsibility to determine when the 50% level is met.
When combined monthly parental income is greater than $28,250, the guideline says parents should pay the highest basic child support obligation (listed on page 71 of the Child Support Guidelines), plus a percentage of their income over $28,250: One child: 6.81 percent. Two children: 7.22 percent.
The applicable CCPA withholding limit for this employee can be found on the income withholding order and is 55% ($1000 x 0.55 = $550). Since $400 does not exceed the CCPA withholding limit, the employer must withhold $400 from this lump sum payment.
Your company (employer) receives an "Order to Withhold Income for Child Support? from the Child Support Division. Your payment amount is deducted from your paycheck. Your employer sends the payment directly to us (each pay period). We process your payment and send it to the custodial parent.
The Federal limit is 50% of the disposable income if the obligor is supporting another family and 60% of the disposable income if the obligor is not supporting another family. However, that 50% limit is increased to 55% and that 60% limit is increased to 65% if the arrears are greater than 12 weeks.