What Can and Cannot be Deducted from an Employee’s Wages

Live Webinar or Recording

June 18, 2025, 12:00 pm - 1:40 pm Eastern

Credit: CPE: 2, HRCI: 1.5, SHRM: 1.5, RCH: 1.5, ATATX: 1.5, ATAHR: 1.5, ATAPR: 0.75 (Live Only)

Understanding wage deductions is one of the most intricate and heavily regulated areas of payroll management. This comprehensive webinar is designed to help payroll professionals, HR leaders, business owners, and legal advisors navigate the legal landscape of employee wage deductions—both for regular paychecks and final payments. Failure to comply with federal and state laws can result in severe penalties, back pay awards, and even litigation. Participants will learn what deductions are mandatory, which require written employee consent, and which are strictly prohibited. From IRS tax levies to state garnishment limits, this session covers it all.

We’ll take a deep dive into common and complex payroll situations, such as overpayments, fringe benefit deductions, uniform costs, and employee purchases. You’ll gain a better understanding of when and how you can deduct for items like meals, lodging, and cash shortages, and whether these deductions can be used to offset minimum wage obligations. Final paychecks come with their own set of rules, and we’ll clarify how to handle advanced vacation recovery, loan repayments, and outstanding balances at the time of termination. We'll also examine the impact of anti-wage theft laws and how they differ across states.

This session is packed with practical, real-world examples and will offer clear guidance on the proper way to handle voluntary and involuntary deductions. Whether you’re responding to a child support order, processing a payday loan deduction, or handling an IRS tax levy, you’ll leave this session equipped with the knowledge needed to stay compliant. Special emphasis will be placed on distinguishing between federal and state requirements, and how to prioritize when these laws conflict.

Topics Covered In This Webinar:

• 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
• Handling fringe benefits such as 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 it is a perk
• Shortages—The employee came up short, so they must 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 they quit, 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

Your Benefits For Attending:

• Identify which payroll deductions are legally required, permitted, or prohibited under federal and state law
• Understand how to manage complex deduction types, including overpayments, fringe benefits, garnishments, and employee loans
• Learn how to handle final paycheck deductions legally and accurately to avoid wage theft violations

This webinar will empower payroll professionals with the legal insight and practical tools they need to process deductions accurately and avoid costly compliance errors. Gain confidence in handling complex scenarios and ensure every paycheck—regular or final—is issued in full compliance with applicable laws.

Guest Speaker: Vicki M. Lambert, CPP - The Payroll Advisor

Level: Basic

Format: Live Webcast

Field of Study: Accounting

Program Prerequisites: None

Advanced Preparation: None

Aurora Training Advantage is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

For more information regarding administrative policies such as complaint and refund, and cancellation please contact our offices at 407-542-4317 or training@auroratrainingadvantage.com.

This program has been approved for credit hours through the HR Certification Institute. For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.

Aurora Training Advantage is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.

Aurora Training Advantage is an approved provider through the American Payroll Association. To receive credit through the American Payroll Association for this program you MUST attend the program in its entirety.

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in accounting.

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in human resources.

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in payroll.