Wage Deductions: What You Can & Can't Deduct from an Employee's Wages (Recorded)

This recording reflects information, laws, and best practices as of the recording date. Requirements may have changed since this session was recorded — consult qualified counsel or a current source for guidance on today's requirements.

Course Description

When paying an employee, employers are supposed to calculate an employee's gross wages in payroll by meticulously following strict regulations regarding "hours worked" and "taxable income". The employee then receives his or her "net pay". But there's a whole lot in between.

What if an employee damages company property? Can the employer deduct the cost from the employee's wages? Can you make an employee pay for a uniform or similar items? Are you adhering to applicable federal and state regulations — failure to do so can result in substantial penalties and interest.

In this 90-minute presentation, we will offer insight into how to protect your company and stay compliant with laws regarding employee wage deductions. We will discuss what you as an employer can and cannot deduct from an employee's paycheck — both the regular and final one — including a brief overview of child support and its limits, federal and state tax levies, which creditor garnishments you can and must honor, voluntary wage assignments for payday loans, fringe benefits and several other related topics. We will focus on federal laws and general legal principles that apply to all (or most) states and may use specific state examples.

Areas Covered

• Taxes—which are mandatory, which are a courtesy, and which ones the employee controls
• Child support—the limits but not beyond
• Tax levies—federal and state
• Creditor garnishments—how many can you honor and how often
• Voluntary wage assignments for payday loans—when are they required to be honored
• Fringe benefits (e.g., health insurance, group term life)
• Uniforms
• Meals—can they ever be part of the employee's wages?
• Lodging—employee's wages or a perk?
• Shortages—can you deduct them from wages?
• Breakage—does an employee have to pay for them out of wages?
• Overpayments—how do you recoup them?
• Advanced vacation pay—can you take them back when the employee quits?
• Loans to employees: what terms can you set, and what do you do when the employee leaves or is terminated?
• Employee purchases
• Anti-wage theft laws and the states

Who Will Benefit

• Payroll Executives, Managers, Administrators, Professionals, Practitioners, and Entry Level Personnel
• Human Resources Executives, Managers, and Administrators
• Accounting Personnel
• Business Owners, Executive Officers, Operations and Departmental Managers
• Legislators
• Attorneys and Legal Professionals
• Any individual or entity dealing with Payroll Compliance requirements or considering a change in payroll frequency