To deduct or not to deduct? It’s a common question for employers and a complex issue you want to get right. For both exempt and non-exempt employees, permissible paycheck deductions typically include those required by law (taxes) or by court order (garnishments) and those at the request and for the benefit of the employee (benefits premiums, 401(k) deposits). Aside from those situations, you generally may not deduct from an exempt employee’s pay – with a few exceptions:
