Deducting from an Employee’s Paycheck: When Can it Be Done?

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.