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After calculating gross wages for an employee is accomplished, much more difficult decisions have to be made. This course covers: What must an employer deduct from an employee’s wages? What can be deducted legally? And what can never be deducted? These questions and more must be answered correctly before processing that paycheck. And if this is the employee’s final check…the rules may change!

Of course everyone knows that payroll deducts for federal and state taxes. However, how much input does the employee have concerning these deductions? Which taxes are mandatory, which are a courtesy and which ones the employee controls will be explained in this course.   If the Internal Revenue Service (IRS) or the state wants payroll to collect for back taxes; how is that processed?  What does payroll do if a “payday loan” deduction is received as opposed to a creditor garnishment? Which ones must we honor and why? We discuss this during this course.  

Handling deductions is a complex task that payroll must get right every time for every payroll check. Failure to deduct the proper amount of taxes could result in penalties on the employer from the Internal Revenue Service (IRS), but making an illegal deduction for a fringe benefit or for collecting an overpayment can get the employer a visit from the federal Department of Labor auditor, the state Department of Labor auditor or both! 

This course discusses these topics and much more as we learn what you can and cannot deduct from an employee’s paycheck.

Learning Objectives

  • Explore which taxes are mandatory, which are a courtesy and which ones the employee controls
  • Recognize when federal and state wage and hour laws permit recouping overpayments to employees
  • Discover the limits that govern deducting for child support, tax levies and creditor garnishments as opposed to voluntary wage assignments
  • Identify the rules and regulations for deducting for cash shortages and breakages

 

Last updated/reviewed: July 17, 2018

1 Review (16 ratings)Reviews

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Member's Profile
This is an extremely thorough and detailed look at what you can deduct from an employee and under what circumstances, including federal and state limits.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  4:51Introduction to Deducting from an Employee’s Paycheck: When Can it Be Done?
  10:06Taxes
  8:42Taxes Continued..
  9:28Garnishments
  15:29Garnishments Continued..
  12:09Garnishments Conclusion
  7:07Fringe Benefits & uniforms
  13:55Meals and Lodging
  4:39Shortages/Breakage
  14:21Overpayments
  5:04Advance Vacation Pay
  6:34Loans and Employee Purchases
  3:48Anti-Wage Theft Laws
CONTINUOUS PLAY
  1:56:14Deducting from an Employee’s Paycheck: When Can it Be Done?
SUPPORTING MATERIALS
  PDFSlides: Deducting from an Employee’s Paycheck: When Can it Be Done?
  PDFDeducting from an Employee’s Paycheck: When Can it Be Done? Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM