After calculating gross wages for an employee is accomplished, much more difficult decisions have to be made. What must an employer deduct from an employee’s wages? What can be deducted legally? 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 during this webinar. If the 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 will discuss this during this webinar.

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 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!

In this webinar we discuss these topics and much more as we learn what you can and cannot deduct from an employee’s paycheck.

Course Key Concepts: Payroll deductions; taxes; garnishments; meals and lodging; shortages; fringe benefits; child support; uniforms; breakages; advanced vacation pay; loans; anti-wage theft laws.

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: March 27, 2024
80 Reviews (336 ratings)

Reviews

4
Member's Profile
Great course and materials! I did not provide a five-star as some of the more complex areas, terminology and language could be updated for clarity on credits to the employee or employer and where they come from. Will definitely take more courses from this instructor - very knowledgeable!

5
Member's Profile
Upbeat and interesting speaker . It’s making me write more it’s making me write more it’s making me write more it’s making me write more it’s making me write more it’s making me write more it’s making me write more it’s making me write more

5
Anonymous Author
This course provided a great overview of payroll deductions and served as an excellent refresher. Vicki presented the content in an engaging and informative manner, including helpful supporting materials for future reference.

5
Anonymous Author
Great course. The speaker was engaging and interesting. This was a great review of payroll deductions and was a good refresher. I found it very interesting as I have to deal with overpayments and loans on a daily basis.

5
Member's Profile
This is a very good review of deducting from an employee's check. It reminded me of the importance to check state laws before withholding anything out of the ordinary from an employee.

5
Member's Profile
Great refresher course for sure. This is good to keep in mind as payroll software often does most of the work. This was excellent. Would definitely recommend keeping the slides.

5
Anonymous Author
Good overview of both vol and invol deductions to be taken. The instructor is very knowledgeable and gives examples to make it easier to understand. I enjoy taking her courses.

5
Member's Profile
this course was very long but the speaker was not monotone and made the content somewhat entertaining. There are a lot of details about payroll deductions that will be helpful.

5
Anonymous Author
I liked that the instructor went into detail regarding what to do when receiving multiple garnishments and also highlighted deduction laws that are unique to certain states.

5
Member's Profile
Great class. It's been a while since I took anything about deductions from pay. I found it profoundly interesting when learning about the uniform part and overpayments.

5
Anonymous Author
This course provides an excellent overview of the circumstances that lead to employee over payments as well as important information regarding deducting repayments.

5
Member's Profile
Good material and covered the topics well. Great course especially for those new to the payroll profession or those that need a refresher on this subject matter.

4
Anonymous Author
Instructor very knowledgable on subject matter. Some of th slides confused me a bit versus what she was saying at the moment but overall I think I got the gist.

5
Member's Profile
For those that process a good amount of garnishments and child support orders and others, this is a great course to take. Very detailed and informative class.

5
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.

4
Anonymous Author
Employee deductions can be tricky indeed. I love the maps this speaker includes in her presentations. It’s a starting point to see what the state says.

5
Member's Profile
This is a great course on what should/can be deducted from employee pay. Vicki is a great teacher and explains concepts well and in an engaging manner.

5
Member's Profile
Excellent course as always from Ms. Lambert! Covers all the main areas of pay deductions and includes helpful calculation examples as well.

5
Member's Profile
This information was very enlightening. Some of it was reinforcement for me and some I wasn't that familiar with. All in all, great course.

4
Member's Profile
I did enjoy this course! A good summary of EE's deductions. It cover most of the important deductions. Good explanation and good examples!

5
Anonymous Author
Great Refresher for anyone in payroll - This trainer is excellent at what she does - always enjoy her courses even though they are tough

5
Anonymous Author
This is a helpful overview of garnishments, their priorities and other deductions. It would be helpful to anyone who does payroll.

5
Member's Profile
Instructor was extremely knowledgeable and very effective in her presentation. She was interesting and didn't waste any time.

5
Anonymous Author
Great course on what can and cannot be deducted from an employees paycheck. Good information on both the federal and state levels.

5
Anonymous Author
Vicki Lambert's course are always thorough and easy to understand. Also, gives many examples. I would recommend this course.

5
Anonymous Author
this information was great. This is something that I will revisit several times since there are so many different factors.

5
Anonymous Author
This class offered a lot of valuable information regarding deductions. Good examples were given to reinforce learning.

5
Anonymous Author
This instructor is my favorite. She's so thorough and uses real life examples to put the lessons in perspective.

4
Anonymous Author
Good course to show when or when not to take deductions. Much more complicated than I was thinking it would be.

4
Anonymous Author
I was surprised how long I've been in payroll and how much I still had to learn. This course was ver helpful.

5
Member's Profile
Instructor was thorough and informative. Topics were on point and covered all areas in which I had questions.

5
Member's Profile
It is a very well put together course with a lot and relevant information about the topic, upbeat speaker.

5
Member's Profile
Valuable information for payroll and business professionals. Good overall refresher. Vicki is excellent.

5
Member's Profile
Very informative and worthwhile to take. This is a complicated subject which is clearly explained.

5
Anonymous Author
good presentation, good slides for reference, would have liked more fringe cases and how to handle

5
Member's Profile
This class was very interesting. it helps to make sure that we are paying our employees correctly

5
Member's Profile
This is a good class to take if you want to know or need a refresher on employee wage deductions.

5
Anonymous Author
Excellent materials and Vicki Lambert is a very knowledgeable presenter. I recommend this course.

5
Member's Profile
I really enjoy this instructor. She gives so much info. This helps me in my every day work.

5
Member's Profile
This webinar has a lot of useful information. Thank you for the opportunity to view it.

5
Member's Profile
Vicki's courses are always very clear and she gives realistic examples that always help.

4
Anonymous Author
Great overview of the different areas to consider when deducting from employee paychecks

5
Member's Profile
this was a great course whether you are new to deductions or looking for a refresher.

5
Member's Profile
good wording, nice slides explaining very much in detail, perfect examples are used.

4
Anonymous Author
Good information. It does need to be updated to reflect the new 2020 W4 information.

5
Member's Profile
Very informative material. The Instructor is quite knowledgeable with payroll laws.

5
Anonymous Author
You did it again Vicky. This was such a fun class. I highly recommend this class.

5
Anonymous Author
Great content Vicki is always the best trainer. Will highly recommend. Thank you

4
Anonymous Author
Great course, Upbeat instructor provides a great overview of payroll deductions

5
Anonymous Author
As always, Vicki presents a clear explanation of what can be a confusing issue.

3
Anonymous Author
great class, covers all sorts of rules and she explains everything thoroughly

5
Member's Profile
very informative, great information by state is included in this presentation

5
Anonymous Author
Good overview of deductions from pay. This was a good review for me to take.

5
Anonymous Author
Wonderful course, gives a lot of guidance material for further the research.

5
Member's Profile
great course will definitely recommend passed on the 1st try easy to follow

5
Anonymous Author
I really enjoyed this course and helped me freshen up on my deduction laws.

5
Member's Profile
Fantastic! Vicky is an awesome teacher! Thank you for another great course!

5
Member's Profile
Lots of information! I was surprised by the deducting overpayment rules.

5
Anonymous Author
Good information on what can and cannot be deducted from employee wages.

5
Anonymous Author
Great and informative lesson. As always, learned a lot from this course.

5
Member's Profile
very very good. cant wait to take the courses that go into more detail

4
Anonymous Author
Would like to know more about repayment of benefits after a furlough.

5
Anonymous Author
Great refresher and well covered. Thank you for sharing this insight.

5
Member's Profile
Topics covered were relevant and well laid out. Very good refresher!

5
Anonymous Author
Very informative, good pace to the webinar, thank you very much.

5
Member's Profile
Thank you for the great course information. What else can I say?

5
Member's Profile
Excellent refresher for what is allowed to be deducted and when.

5
Anonymous Author
Thank you. Great course! There was a lot of useful information.

5
Member's Profile
Interesting course, definitely informative and a great refresher

4
Member's Profile
Nice review of state variations on the withholding regulations.

5
Anonymous Author
The course was presented well and contained useful information.

4
Anonymous Author
This was very informative, especially relating to overpayments.

4
Anonymous Author
Good course I learned a lot and benefitted from the experience

3
Anonymous Author
Good Refresher course for work. It was helpful. Thank you

4
Anonymous Author
very good summary. Good examples of different state laws

5
Member's Profile
This is a very comprehensive course! Highly recommended.

5
Anonymous Author
There was a lot to go over, but it was done beautifully.

5
Anonymous Author
Excellent course, great instructor. Value information.

5
Anonymous Author
Very well done. Covered everything. Very well done.

5
Member's Profile
I learned a lot and will review this course again.

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 Questions and Answers1 Question
User picture

I have an employee with a child support order in effect and did not have enough wages to cover the order. So I withheld at 50% of disposable. Then I received a SC state tax garnishment for $34 dollars. Do you withhold the $34 in addition to the 50% disposable since the state tax is not covered under the CCPA?

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Deduction from an Employee's Wages4:38
  Taxes19:06
  Garnishments23:52
  Fringe Benefits5:42
  Meals and Lodging10:15
  Shortages/Breakage2:58
  Overpayments8:34
  Advanced Vacation Pay6:14
  Loan and Employee Purchases12:26
CONTINUOUS PLAY
  Deducting from an Employee’s Paycheck: When Can it Be Done?1:33:45
SUPPORTING MATERIALS
  Slides: Deducting from an Employee’s Paycheck: When Can it Be Done?PDF
  Deducting from an Employee’s Paycheck: When Can it Be Done? Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam