Understanding Payroll Deductions in 2018: What can and cannot be Deducted from an Employees Wages

Once gross pay is calculated, payroll faces harder questions: what must be deducted, what may be deducted and what never can be. This 60-minute payroll deductions training covers the federal and state rules, including how they change for a final paycheck.

Missing a required tax can bring IRS penalties, while an illegal deduction for a fringe benefit or an overpayment can draw federal or state labor department auditors. You'll learn which taxes are mandatory, a courtesy or employee-controlled, and how to process child support, tax levies, creditor garnishments and payday loan assignments, with charts and examples.

The session also covers health insurance under medical support orders, uniforms, meals and lodging, shortages, breakage, overpayments, advanced vacation, loans, employee purchases and anti-wage theft laws.

• Classify tax deductions as mandatory, courtesy or employee-controlled
• Calculate child support, tax levy and creditor garnishment withholding
• Decide when payday loan assignments must be honored
• Process voluntary and involuntary benefit deductions
• Apply federal and state rules to uniforms, meals, lodging, shortages and breakage
• Recover overpayments, advanced vacation, loans and purchases lawfully
• Explain how anti-wage theft laws affect deductions

Taxes and involuntary deductions

• Taxes that are mandatory, a courtesy or controlled by the employee
• Child support limits, with charts and examples for calculating disposable income
• Federal and state tax levies, with take-home pay examples
• Creditor garnishments: how many to honor and how often, with charts and examples
• Voluntary wage assignments for payday loans

Benefits and workplace costs

• Voluntary and involuntary health insurance and group term life deductions
• Uniforms: when the employer pays and when the employee furnishes them
• Meals and lodging as wages, perks or a minimum wage credit
• Cash shortages and breakage

Recovering money and final pay

• Recouping overpayments under the FLSA
• Advanced vacation pay when an employee quits
• Employee loans and purchases for active and terminated employees
• Anti-wage theft laws in the states

Deductions must be right on every paycheck, and federal and state rules don't always agree. Questions about uniforms, cash shortages, meals and lodging, overpayments and advanced vacation come up constantly, and the wrong answer can mean penalties or a labor audit.

This session suits HR senior management, benefits managers, attorneys, accountants, third-party administrators, insurance agents and brokers, and employers.

• HR senior management
• Benefits manager
• Attorneys
• Accountants
• Third party administrators
• Insurance agents and brokers
• Employers

Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that mean to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.

Mr. Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.

Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs, and feels that educating clients toward faster, accurate and more complete payroll processes provides the most value.

Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.