- 8 Basics of Small Business PPC Management Business 2 Community
Can an employer legally deduct "Payroll Costs" from an employee's check?
A friend of mine works for a small company. He is paid hourly & receives a commission. He's recently noticed a deduction for "Payroll Costs" that varies based on his gross.3 months ago - 4 answers
Never heard of that, and it's quite silly. The cost of tracking commissions and issuing a check may vary on the amount of claims for commission someone makes (e.g., it's more expensive to process 100 claims of $1 vs. 1 claim of $100) but I've never seen anyone forced to pay for such processing.
The legality of this is a different question - if he signed a contract where this was agreed upon, it's probably legal. It's just not standard and very cheap. I wouldn't work for a place that nickel and dimed me like that.
I do not believe they can. It is something they signed up for when ( I am assuming) they chose to use a payroll company rather than do it themselves. It is not the employees responsibility to pay for their choices!by Brittany - 3 months ago
I doubt it. There may be some weird state law in dome state that makes it possib
le but I doubt it. And think about it. It cost the same to write a one dollar check as it does a hundred dollar check. Your friend needs to look onto this
I am sure there is no such thing as an hourly employee who is a pure commission person==perhaps
he gets a salary and commission.
I suggest you check.
he may not have any withholding other than fed income taxes and social security; that is the law==
in the US, that is