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Understanding Payroll Deductions in 2016: What Can and cannot be Deducted from an Employee's Wages (HRM161D)

Presented by: Vicki M. Lambert, CPP
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Pre Recorded Webinar
100 minutes
  •  Wed, January 20, 2016
Event Description
2.0 CPE
1.5 PDC - AudioSolutionz is recognized by SHRM to offer Professional Development Credit (PDCs) for the SHRM-CPSM or SHRM-SCPSM
1.5 Credit
1.5 Credits

Learn to differentiate between taxes-which ones are mandatory, courtesy, and what comes under employee controls and more by attending this session by Vicki M. Lambert, CPP

Many important and complex decisions has to be made after the calculation of gross wages for an employee is completed. How much should be deducted from an employee's wage by an employer? What can be legally deducted? What can never be deducted? It is important to answer these questions appropriately prior to processing the paycheck. Also, the rules could change if it is the employee's final paycheck.

The handling of payroll deductions is a difficult task and it is important that the payroll gets every check right every time. The IRS can penalize the employer if it fails to deduct the appropriate tax. However, an employer might get a visit from the state department of labor auditor, the federal department of labor auditor or both if the payroll makes an illegal/wrong deduction for collecting an overpayment or fringe benefits. In some cases, the federal governments will allow those deductions; however, the states won't.

Of course everyone knows that payroll deducts for federal and state taxes. But, what kind of input does the employee have regarding these deductions? This will be answered in this webinar by our expert speaker Vicki M. Lambert, CPP. Which taxes are mandatory, which are a courtesy and which ones the employee controls will be explained during this webinar. 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 we honor and why. We will discuss this during this webinar.

Fringe benefits are a normal part of payroll for most employees. Deducting for voluntary fringe benefits such as health insurance or group term life can usually be an easy task. But what about health insurance under a medical support order? Does that change how it is processed by payroll? We will discuss processing voluntary and involuntary health insurance deductions.

Many employers require their employees to wear uniforms for work. Can the cost of the uniforms and their upkeep be deducted from an employee's wages? What about cash shortages or breakage? Can I deduct the cost of shortage or breakage from the employee's paycheck under the state or federal laws?

Some employers offer meals and lodging as part of the employee's work contract. What can be deducted from the employee's paycheck for employer provided meals and lodging and can this be used as credit against the minimum wage paid?

What if an employee is overpaid can the employer simply deduct the overpayment from future payments or does the employee have to agree to the deduction in writing? Does the federal law differ from the state law in this area and, if it does, which one does the employer have to follow?

Many employers advance vacation for their employees to ensure that all employees are rested and working at peak efficiency. But what if the employee takes their vacation in advance and then leaves the company? Can an employer recoup advanced vacation hours from the employee's final check under federal or state laws?

Many employers give loans, advances on wages to employees or allow employees to purchase items from the employer. We will discuss how these can be recouped or repaid if the employee stays or if the employee terminates.

Session Highlights:

  • Learn to differentiate between taxes-which ones are mandatory, courtesy, and what comes under employee controls
  • Child support-the limits but not beyond
  • Tax levies-both the state and federal
  • Creditor garnishments-how often and how many you can honor
  • "payday loans"-Voluntary wage assignments and when are they required to be honored
  • Managing fringe benefits like the group term life or health insurance
  • Uniforms-when the employee furnishes it and when the employer pays for it
  • Meals-when it is included in employee's wages
  • Lodging-when is it a perk and when it has to be included in the employee's wages
  • Shortages-do the employee has to cover when he/she comes up short?
  • Breakage-you break it, you pay for it, legal or not
  • Overpayments-can you just take the money back if you overpaid the employee?
  • Advanced vacation pay-can the employee take back the vacation hours when the employee quits if the employee knows the vacation hours were advanced?
  • Loans to employees: what are the rules that can be set while the employee is still working and what can be taken when the employee is terminated
  • Employee purchases-terminated and active employees
  • Anti-wage theft laws and the states
  • Charts and examples on how to calculate disposable income for child support
  • Examples on calculating take home pay for federal tax levies
  • Charts and examples of how to calculate a creditor garnishment
  • When meals and lodging can be applied as a credit towards minimum wage
  • The facts concerning recouping overpayments under the FLSA
  • Update on Anti-wage theft laws in the country

Who should attend?

Payroll and human resources professionals who must determine what deductions can and should be made for an employee's regular paycheck or their final paycheck

About Our Speaker(s)

Vicki M. Lambert | Payroll Training SpeakerVicki M. Lambert CPP
Vicki M. Lambert, CPP is President and Academic Director of The Payroll Advisor™ a firm specializing in the training of payroll professionals. With over three decades of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert is a sought-after and respecte... More info

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    Event Title: Understanding Payroll Deductions in 2016: What Can and cannot be Deducted from an Employee's Wages
    Presenter(s): Vicki M. Lambert, CPP

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