Pre-tax deductions: Medical and dental benefits, 401(k) retirement plans (for federal and most state income taxes) and group-term life insurance. Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable donations.

What are allowable deductions for 2020?

The standard deduction amounts will increase to $12,400 for individuals and married couples filing separately, $18,650 for heads of household, and $24,800 for married couples filing jointly and surviving spouses. For 2020, the additional standard deduction amount for the aged or the blind is $1,300.

Can you deduct money from an employee’s paycheck?

Under California law, an employer may lawfully deduct the following from an employee’s wages: Deductions that are required of the employer by federal or state law, such as income taxes or garnishments.

When to take deductions from an employee’s salary?

Deductions in terms of a written agreement with the employee to pay back a debt. For example to pay back a study loan; If the employee was overpaid in error. Other deductions from an employee’s salary may only be made if the following requirements are met:

What does it mean to have a payroll deduction plan?

A payroll deduction plan refers to when an employer withholds money from an employee’s paycheck for a variety of purposes, but most commonly for benefits. Payroll deduction plans may be voluntary…

Can a employer deduct salary from an employee in South Africa?

The core legal and labour law principle relating to deductions from employee salaries in South Africa is that the employee must give his or her prior consent to the deduction. However, there is some scope to accommodate an employer for any loss or damage it may suffer on account of an employee’s deliberate act or negligence.

Can a deduction be made from your remuneration?

A deduction from an employee’s remuneration would therefore only be possible if the employee agreed to such a deduction in writing or the deduction is allowed in terms of legislation, a court order or an arbitration award.