Question

Sherry

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

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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.

3 months ago
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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

by Goober - 3 months ago

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

by kemperk - 3 months ago