• FirefoxInstall the new Firefox »
  •  
    Small Business

    Question

    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.
    a few seconds ago 4 Answers

    Best Answer

    Chosen by Asker
    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.
    a few seconds ago

    Other Answers

    • 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 - 15 hours 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 - 15 hours ago

    • 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 - 15 hours ago

    Recommended Articles

     
     
     
     
    Yahoo Small Business Services