Ensuring the Digital Signature Lawfulness for Payroll Deduction Authorization in United States

How to eSign a document: digital signature lawfulness for Payroll Deduction Authorization in United States

hi i'm charles reed president of get payroll when it comes to payroll there's one word that no one likes to see on their pay stub deductions however it is important to know what those deductions are to understand where the money is going although it's very likely your employees still won't be happy there are two types of deductions the first is voluntary deductions an employee can voluntarily agree to wage deductions that must be implemented by the payroll department these deductions may include voluntary wage assignments to repay a debt charitable deductions wages withheld to purchase u.s savings bonds credit union loan repayments just to name a few then there are also voluntary deductions that are deducted from an employee's gross pay before calculating taxes these are called pre-tax deductions since they reduce the employee's taxable income they reduce the required contributions that the employee and employer must make for social security and medicare taxes they also reduce the employees federal income tax withholding because less taxable income means less income tax the other type of deductions are involuntary deductions involuntary payroll deductions are those over which an employer or employee have little or no control the employer is required by law to deduct specific dollar amounts of employees pay and remit that to a person or an agency to satisfy the law if the employer fails to deduct and remit the amount the employer will generally be subject to a penalty equal to the amount that was required to be deducted plus possible fines and interest these involuntary deductions may include federal taxes state taxes local taxes child support tax levies unpaid student loans creditor garnishments and more a common problem for employers is determining the deduction amounts when several orders for involuntary deductions are received against an employee's wages [Music] a certain amount of the employees wages is exempt from involuntary deduction orders if there is not enough payroll available after the amount were exempted to pay all of the orders the employer must understand which orders to pay and how much to pay on each order now there are methods to prioritize all of the various types of the orders received by the employer if you'd like to learn more about payroll check out our website at getpayroll.com or my new book the payroll book a guide for small businesses and startups available at thepayrollbook.com amazon or wherever fine books are sold thanks for listening