Payroll Deductions 2022: What Can and Cannot be Deducted from an Employee’s Wages

Course Description:

When paying an employee, employers are supposed 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 an employee’s 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 you insight into how to protect your company and stay compliant with laws regarding employee wage deductions.

Use Code - "GET10" and get a 10% discount!

Why Should You Attend?

In a nutshell, we will discuss what you as an employer can and cannot be deduct from an employee’s paycheck – both the regular and final one. We will include a brief overview of child support and its limits, federal and state tax levies, which credit garnishments you can and must honor, voluntary wage assignments for payday loans, fringe benefits and several other related topics.

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. If you don’t deduct the proper income taxes, the IRS (and corresponding State Taxation Dept) might assess penalties. If you make other illegal deductions from an employee’s pay, the US and/or State Dept’s of Labor may come knocking on your door. Does your employee have any say over any of those deductions? In this webinar, we’ll explore the answers to these and many other questions.

Strict regulations apply to calculating an employee’s gross wages, particularly regarding what is counted as “hours worked” and “taxable income”. When deducting from an employee’s gross wages to determine net income, an employer must adhere to the regulations or risk being subject to penalties and interest, which can add up to significant amounts. In this webinar, you will learn how to protect your company while complying with wage deduction laws. We will focus primarily on federal laws and general legal principles that apply to all (or most) states and may use some specific state examples as well.

Areas Covered in the Webinar:

  • 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 ( insurance, group term life)
  • 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 what 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/Entry Level Personnel
  • Human Resources Executives/Managers/Administrators
  • Accounting Personnel
  • Business Owners/Executive Officers/Operations and Departmental Managers
  • Legislators
  • Attorneys/Legal Professionals
  • Any individual or entity that must deal with the complexities and requirements Payroll Compliance and are considering making a change in Payroll Frequencies


Our Speaker

Janette Levey Frisch

Janette Levey Frisch is an attorney with more than 20 years’ legal experience. She works with employers on most employment law issues to ensure that employers are in the best position possible to avoid litigation, audits, employee relations problems, and the attendant, often exorbitant costs. She authors the firm’s weekly blog, where she discusses issues impacting employers today. She has written articles on many different employment law issues for many publications, including EEO Insight, Staffing Industry Review, @Law, and Chief Legal Officer. Ms. Frisch has also spoken and trained on topics, such as criminal background checks in the hiring process, joint employment, severance arrangements, pre-employment screening among many others. She is licensed in New Jersey and New York. In addition, she serves as a Legal Wellness Professional to employers outside New Jersey and New York on almost all federal employment law issues, to enable employees to address workplace challenges before they escalate to litigation or costly audits. Ms. Frisch is also a contributor to the recently released book, “Hiring Greatness: How to Recruit Your Dream Team and Crush the Competition,” published by John Wiley and Sons, and authored by David E. Perry and Mark J. Haluska.

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