Wage Deduction Authorization

Wage deduction authorization

Wage deduction authorization is a written agreement or consent by an employee, allowing their employer to deduct certain amounts from their paycheck for specific purposes.

These deductions could include things like federal or state taxes, Social Security contributions, employee benefits (e.g., health insurance premiums or retirement contributions), wage garnishments for child support or debt payments, and other voluntary deductions such as union dues or charitable contributions.

Employers are generally required to provide employees with a clear breakdown of deductions and must follow legal guidelines regarding the types and amounts of deductions they can make. In the case of voluntary deductions, the employee must explicitly authorize them in writing, ensuring transparency and compliance with wage and hour laws.