What are you NOT allowed to deduct from employee checks?

Deductions from employee checks are typically regulated by both federal and state laws, and certain types of deductions are not permitted. Business expenses fall into the category of deductions that you cannot take directly from employee paychecks. Employees incur business expenses as part of their work, but these costs are generally the responsibility of the employer or must be reimbursed after the fact, rather than deducted directly from an employee’s wages.

In contrast, contributions to retirement plans, insurance premiums, and union dues are often considered permissible deductions. Retirement plan contributions can be deducted pre-tax, impacting the taxable income for the employee. Insurance premiums are also typically deducted from employee pay, especially in employer-sponsored plans. Finally, union dues are generally authorized deductions as they are agreed upon by the employee and the union representing them. These types of deductions are common and have established frameworks for their handling within the payroll processing system.