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1.16.02 Payroll Deductions

1.16.2 Payroll Deductions  (Revised 10/2020)

Fair Labor Standards Act (FLSA) and the States Amerimed operates permit employers to make deductions from employees’ wages, even if it takes him/her below minimum wage or overtime due, provided the deductions are required by law. This includes things like state and federal taxes, social security, and child support orders.


Mandatory & Voluntary Deductions:

• Payroll taxes and other legally required deductions
• Court-ordered garnishments (e.g., child support)
• Meals, lodging, and other facilities
• Voluntary wage assignments (for something of benefit to the employee, e.g., medical benefits, disability and/or life insurance, retirement contributions, etc.)
• Loans and advances (e.g., vacation pay advances)
• Replacement uniforms and uniform cleaning costs
• Cash losses due to, breakage, damage, or loss of the employer’s property
• Other items necessary for employment


Involuntary Deductions:

Wage garnishment is the process of requiring an employer to deduct money from an employee’s pay as the result of a court order or action by an authorized agency. Deductions are required by a law to satisfy a debt or obligation of some kind. The common types of required deductions are: 
• Child support
• Taxes
• Unpaid court fines
• Creditor garnishments
• Bankruptcy orders
• Guaranteed student loans

When the company receives an order to withhold an amount from an employee’s wages, we must “attach” the wages by deducting the required amount. Wage garnishments continue until the garnishment order expires, the entire debt is paid or arrangements are made to pay off the debt. Generally, only one wage attachment may be in effect for an employee at a time. However, multiple child support court orders and/or a tax levy may operate simultaneously.


Additional Information:

The states in which Amerimed operates do not have any laws identifying what voluntary deductions may be made from employees’ paychecks. 

The states in which Amerimed operates do not specifically require employees to provide written consent prior to any deduction, but Amerimed’s policy is to obtain written notification of any deductions outside of those required by law.