Handling Deductions is a Complex Task But Payroll Must Get it Right Every time - Failure Leads to Penalties Per IRS Rules. Put All Your Questions Regarding Payroll Deductions To Rest In This Training Session.
Handling payroll deductions is a complex task that payroll must get right every time for every paycheck. Failure to deduct the proper taxes could result in penalties on the employer per IRS rules, 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 it is certain that states won't.
After calculating gross wages for an employee is accomplished, much more difficult decisions have to 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 again, if this is the employee's final check, the rules may change!
Of course everyone knows that payroll deductions are for federal and state taxes. However, how much input does the employee have concerning these deductions? This will be answered by payroll expert Vicki M. Lambert, CPP in this conference. You'd know which taxes are mandatory, which ones are a courtesy, and which ones are controlled by the employee. Questions such as whether the Internal Revenue Service (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 - all this will be discussed in the session.
Get answers to pertinent questions such as:
- What about health insurance under a medical support order?
- How to process voluntary and involuntary health insurance deductions?
- Can the cost of the uniforms and their upkeep be deducted from an employee's wages?
- Can you deduct the cost of shortage or breakage from the employee's paycheck under the state or federal laws?
- 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?
- What if an employee takes 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?
- What about deductions in case of loans, advances on wages to employees or item purchase from the employer?
- What about meals and lodging applied as a creditor towards minimum wage and the facts calculating take home pay for federal tax levies?
- 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 - 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 have to 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 pay - 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
- Get charts and examples on how to calculate disposable income for child support and creditor garnishment
- Examples on calculating take home pay for federal tax levies
- 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.