Payroll Deduction Do’s and Don’ts

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From an employer's perspective, the rules can get complicated. Not withholding what we should has major consequences - as does deducting what we can’t. If you have an organization of any size, you need to understand more than just federal and state tax withholding.

You need to know what else is mandated, and which deductions are voluntary. You need to know what the FLSA has to say about business expenses - especially for lower-paid workers. You have to know what comes out of pre-tax income and what doesn’t.

You should also understand the ways employers get themselves into trouble with deductions. In addition to penalties and interest, employee debts can become your debts. You can face fines from Dept of Labor for not following FLSA rules. You need to know that many states have stricter rules on deductions. You also need to understand the complexity of wage garnishments, and how they differ from levies. So Join Mark Schwartz for this comprehensive look at payroll deductions Do’s and Don’t.

Why you should Attend: We all get familiar with payroll deductions when we earn our first paycheck. Usually, it is just mandatory state and federal taxes that make the difference between gross and net pay. After we gain experience and enter our careers, payroll deductions get far more tricky. Our employers offer us benefits for which we pay part or all - some pre-tax and some post-tax. Certain business expenses may get deducted. Taxing agencies and other creditors may garnish our wages.

Areas Covered in the Session:

• Which deductions come out of pre-tax income vs which don’t? How to explain the benefit of using these to reduce taxable income to employees
• Which deductions are mandatory and which aren’t? What the deductions are used for and how to explain them to employees? Also, know what happens if you don’t withhold these
• Which deductions are voluntary? How to stay on the right side of rules and regulations on the matter. How to talk with employees about the benefits and disadvantages of voluntary deductions
• An understanding of when you can and can’t deduct business-related expenses from employee paychecks. Where to find information on State rules and regulations, which can and do differ greatly from Federal rules
• Common mistakes made by employers and how to avoid them
• Other specific examples beneficial to most businesses
• Wage Garnishments - the specifics on how to comply and how much to withhold. A brief description of other 3rd party deductions from your employee payhecks
• Penalties associated with non-compliance

• Payroll and HR managers
• Compensation and hiring staff
• Finance and Operational Managers
• Executive Staff