In payroll, we calculate the gross wages of an employee by meticulously following strict regulations on what must be or must not be counted as hours worked and taxable income. We pay the employee their net paycheck only by the payment method that is permitted. But what about in between? When it comes to deducting from the employee’s gross wages to achieve the net income are you also adhering strictly to the rules?

After calculating gross wages for an employee is accomplished, much more difficult decisions must 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! Handling deductions is a complex task that payroll must get right every time for every payroll check. Failure to deduct the proper 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! Sometimes the federal government will allow the deduction but that certain states won’t.

In this webinar, we will discuss what can and what cannot be deducted from an employee’s regular paycheck as well as their final one. Failure to follow the regulations pertaining to employee wage deductions can result in substantial penalties and interest.




Areas covered in this Training

-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
-Handling fringe benefits such as health insurance or group term life
-Uniforms—when the employer pays for it and when the employee furnishes it
-Meals—when they become part of the employee’s wages
-Lodging—when it is part of the employee’s wages and when is it a perk
-Shortages—the employee came up short, so they must cover that right?
-Breakage—you broke it, so you have to pay for it, legal or not?
-Overpayments—the employee was overpaid so you can just take the money back, or can you?
-Advanced vacation pays—the employee knows the vacation hours were advanced so we can take them back when the employee quits, can’t we?
-Loans to employees: what terms can be set while the employee is still active and what can be taken when the employee terminates
-Employee purchases—active employees and terminated employees
-Anti-wage theft laws and the states




Why Attend This Training

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. And will offer you insight into how to protect your company and stay compliant with laws regarding employee wage deductions.




Duration: 90 Minutes
Suggested Attendees:

-Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry LevelPersonnel
-Human Resources Executives/Managers/Administrators
-Accounting Personnel
-Business Owners/Executive Officers/Operations and Departmental Managers
-Attorneys/Legal Professionals
-Any individual or entity that must deal with the complexities and requirements of paying employees


You may ask your Question directly to our expert during the Q&A session.


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