Description
In payroll, calculating an employee’s gross wages involves meticulously following strict regulations to determine what counts as hours worked and taxable income. We then pay the employee their net paycheck using only permitted payment methods. But what about the deductions in between? Are you also strictly adhering to the rules when deducting from the employee’s gross wages to achieve their net income?
Once gross wages are calculated, more difficult decisions must be made. What must an employer deduct from an employee’s wages? What can be legally deducted? 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 IRS penalties, while making an illegal deduction for a fringe benefit or for collecting an overpayment can lead to an audit from the federal Department of Labor, the state Department of Labor, or both! Sometimes the federal government will allow a deduction that a particular state will not.
In this webinar, we will discuss what can and cannot be deducted from an employee’s regular paycheck as well as their final one. Failure to follow the regulations regarding 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 they are required to be honored
– Handling fringe benefits such as health insurance or group-term life
– Uniforms: When the employer pays for them and when the employee furnishes them
– Meals: When they become part of the employee’s wages
– Lodging: When it is part of the employee’s wages and when it is a perk
– Shortages: When the employee comes up short, must they cover it?
– Breakage: You broke it, so you have to pay for it—legal or not?
– Overpayments: The employee was overpaid, so can you just take the money back?
– Advanced vacation pay: The employee knows the vacation hours were advanced, so can we take them back when the employee quits?
– 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: Handling for active employees and terminated employees
– Anti-wage theft laws and the states
Why Attend this Training:
While everyone knows that payroll deducts for federal and state taxes, how much input does the employee have concerning these deductions? This will be answered in this webinar. We will explain which taxes are mandatory, which are a courtesy, and which the employee controls. 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 be honored and why? We will discuss this during the webinar.
Suggested Attendees:
– Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry-Level Personnel
– Human Resources Executives/Managers/Administrators
– Accounting Personnel
– Business Owners/Executive Officers/Operations and Departmental Managers
– Lawmakers
– Attorneys/Legal Professionals
– Any individual or entity involved in the complexities and requirements of paying employees
