Payroll Deduction Do's and Don'ts
December
16
2025
(Tuesday)
Time
10:00 AM PST | 01:00 PM EST
Duration: 60 Minutes
15 Days Left To REGISTER
Id: 210406
Duration: 60 Minutes
15 Days Left To REGISTER
Id: 210406
Instructor
Matthew Burr
Matthew Burr
Overview
Managing payroll deductions correctly is crucial for compliance, employee satisfaction, and smooth payroll operations. Here’s a clear guide on the key do's and don'ts.
Areas Covered in the Session
Do's
- Understand Mandatory vs. Voluntary Deductions
- Mandatory deductions include federal and state income taxes, Social Security, Medicare (FICA), and any court-ordered garnishments. These must be withheld by law
- Voluntary deductions are agreed upon by the employee, such as contributions to retirement plans, health insurance premiums, or charitable donations
- Mandatory deductions include federal and state income taxes, Social Security, Medicare (FICA), and any court-ordered garnishments. These must be withheld by law
- Accurately Calculate Deductions
- Use correct tax rates and employee information (e.g., filing status, exemptions) to calculate withholding amounts
- Separate pre-tax deductions (which reduce taxable income, like health insurance and 401(k) contributions) from post-tax deductions (like wage garnishments)
- Use correct tax rates and employee information (e.g., filing status, exemptions) to calculate withholding amounts
- Keep Clear Records and Documentation
- Maintain detailed records of all deductions for compliance and auditing purposes
- Ensure employees receive pay stubs showing gross pay, deductions, and net pay clearly
- Maintain detailed records of all deductions for compliance and auditing purposes
- Stay Compliant with Laws and Regulations
- Follow federal, state, and local laws regarding payroll deductions
- Be aware of specific rules for independent contractors, who generally are not subject to payroll tax withholding
- Follow federal, state, and local laws regarding payroll deductions
- Communicate Clearly with Employees
- Explain deductions clearly to employees to avoid confusion and frustration
- Obtain written consent for voluntary deductions
- Explain deductions clearly to employees to avoid confusion and frustration
Don'ts
- Don’t Withhold Unauthorized Deductions
- Avoid deducting amounts not authorized by law or employee agreement
- Do not withhold FUTA (Federal Unemployment Tax Act) from employees; this is an employer-only tax
- Avoid deducting amounts not authorized by law or employee agreement
- Don’t Mix Up Pre-Tax and Post-Tax Deductions
- Misclassifying deductions can lead to incorrect tax reporting and employee dissatisfaction .
- Misclassifying deductions can lead to incorrect tax reporting and employee dissatisfaction .
- Don’t Neglect Updates in Tax Laws or Employee Status
- Regularly update payroll systems to reflect changes in tax rates, deduction limits, or employee status (e.g., new exemptions, address changes)
- Regularly update payroll systems to reflect changes in tax rates, deduction limits, or employee status (e.g., new exemptions, address changes)
- Don’t Forget to Verify Employee Eligibility
- Confirm whether workers are employees or independent contractors to apply correct withholding rules
- Confirm whether workers are employees or independent contractors to apply correct withholding rules
- Don’t Delay Payroll Processing
- Timely processing ensures deductions are made correctly and employees receive pay on schedule
Who Will Benefit
- All
Speaker Profile
Matthew Burr has over 16-years of experience working in the human resources field, starting his career as an Industrial Relations Intern at Kennedy Valve Manufacturing to most recently founding and managing a human resource consulting company; Burr Consulting, LLC, Talentscape, LLC and Co-Owner of Labor Love, a Labor, and Employment Law poster printing company. Prior to founding the consulting firm, the majority of his career was heavy industry manufacturing and healthcare.
He specializes in compliance auditing, training labor and employment law, conflict resolution, performance management, labor, and employment relations. Matthew has a generalist background in HR and operations, while providing strategic HR and operational solutions to his clients, focusing on small and medium sized organizations. He works as an Adjunct at Alfred State University, Tompkins Cortland Community College, and The College of St. Rose.
He successfully designed an HR Concentration in the business management major that aligned with both SHRM and HRCI certifications, providing opportunities for students to sit for both the SHRM-CP and aPHR certifications upon completion of the degree, concentration, and internship hours as an Assistant Professor of Management at Elmira College (Retired January 2022). Matthew is also the SHRM Certification Exam Instructor, with a current pass rate of 92% on the SHRM-SCP and 83% pass rate on the SHRM-CP and a combined 88% on both exams over a 7-year period of instructing the course (Elmira College, Collin College & The College of St. Rose).
Matthew works as a trainer Tompkins Cortland Community College, Corning Community College, Broome Community College, and HR Instructor for Certification Preparation for the Human Resource Certification Institute (HRCI). He also acts as an On-Call Mediator and Factfinder through the Public Employment Relations Board in New York State, working with public sector employers and labor unions.
PUBLICATIONS: Matthew has publications at the American Bar Association (ABA) Experience Magazine, Cornell HR Review, Business Insider, New York State Bar Association (NYSBA), PayScale, Society of Human Resource Management (SHRM), and Expert 360 (in Australia). In early 2017, he published his first book, “$74,000 in 24 Months: How I killed my student loans (and you can too!),” proceeded by his second book, which was published in January 2021, “Slay the Student Loan Dragon: Tips and Tricks on How to Conquer the Student Loan Game”
VOLUNTEER WORK: Matthew is currently the New York State Society of Human Resource Management (NYSSHRM) District-Director Elect.
EDUCATION & TRAINING:
Additional Training & Development:
SHRM Workplace Coaching and Mentoring Recertification Program, 2020
SHRM Foundation Employing Abilities @Work Certificate, 2020
SHRM Foundation Veterans at Work Certificate Program, 2018
Delta County Chamber of Commerce: Delta Force Leadership Program, 2013
FEATURED IN & ON:
Matthew was featured on CNN Money, Fast Company, Fits Small Business, Fox News, Magnify Money, Monster.com, My Twin Tiers, Namely, Student Loan Hero, Smart Sheet and CEO Blog Nation, Human Resource Certification Institute (HRCI), Society of Human Resource Management (SHRM).
He specializes in compliance auditing, training labor and employment law, conflict resolution, performance management, labor, and employment relations. Matthew has a generalist background in HR and operations, while providing strategic HR and operational solutions to his clients, focusing on small and medium sized organizations. He works as an Adjunct at Alfred State University, Tompkins Cortland Community College, and The College of St. Rose.
He successfully designed an HR Concentration in the business management major that aligned with both SHRM and HRCI certifications, providing opportunities for students to sit for both the SHRM-CP and aPHR certifications upon completion of the degree, concentration, and internship hours as an Assistant Professor of Management at Elmira College (Retired January 2022). Matthew is also the SHRM Certification Exam Instructor, with a current pass rate of 92% on the SHRM-SCP and 83% pass rate on the SHRM-CP and a combined 88% on both exams over a 7-year period of instructing the course (Elmira College, Collin College & The College of St. Rose).
Matthew works as a trainer Tompkins Cortland Community College, Corning Community College, Broome Community College, and HR Instructor for Certification Preparation for the Human Resource Certification Institute (HRCI). He also acts as an On-Call Mediator and Factfinder through the Public Employment Relations Board in New York State, working with public sector employers and labor unions.
PUBLICATIONS: Matthew has publications at the American Bar Association (ABA) Experience Magazine, Cornell HR Review, Business Insider, New York State Bar Association (NYSBA), PayScale, Society of Human Resource Management (SHRM), and Expert 360 (in Australia). In early 2017, he published his first book, “$74,000 in 24 Months: How I killed my student loans (and you can too!),” proceeded by his second book, which was published in January 2021, “Slay the Student Loan Dragon: Tips and Tricks on How to Conquer the Student Loan Game”
VOLUNTEER WORK: Matthew is currently the New York State Society of Human Resource Management (NYSSHRM) District-Director Elect.
EDUCATION & TRAINING:
Additional Training & Development:
SHRM Workplace Coaching and Mentoring Recertification Program, 2020
SHRM Foundation Employing Abilities @Work Certificate, 2020
SHRM Foundation Veterans at Work Certificate Program, 2018
Delta County Chamber of Commerce: Delta Force Leadership Program, 2013
FEATURED IN & ON:
Matthew was featured on CNN Money, Fast Company, Fits Small Business, Fox News, Magnify Money, Monster.com, My Twin Tiers, Namely, Student Loan Hero, Smart Sheet and CEO Blog Nation, Human Resource Certification Institute (HRCI), Society of Human Resource Management (SHRM).
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