Additional paycheck deductions are amounts taken from wages beyond taxes and benefit contributions. These can be required by law (such as garnishments) or authorized by the employee (such as union dues or charitable contributions). This article explains the main types of additional deductions and the rules that apply.
Involuntary deductions (garnishments)
Garnishments are court or agency orders requiring employers to withhold part of an employee’s wages. Common types include:
Child support – Usually has priority, with limits set by federal law.
Federal tax levies – Collected through IRS Form 668-W until released.
Creditor garnishments – Deduct up to 25% of disposable earnings, or the amount exceeding 30× minimum wage.
Student loans – Limited to 15% of disposable wages.
Bankruptcy orders – Take priority over most other deductions.
Federal agency garnishments – Used for non-tax debts, capped at the lesser of 15% of disposable wages or 30× minimum wage.
Employer responsibilities
When processing garnishments, employers must:
Verify the employee is active and covered by the order.
Notify the employee of the garnishment.
Follow federal and state priority rules if multiple orders exist.
Calculate deductions according to legal limits.
Remit payments on time and retain records.
FLSA restrictions on deductions
The Fair Labor Standards Act requires that deductions generally cannot reduce wages below the federal minimum wage, except for certain permitted cases.
Allowed: lodging, meals, or loan repayments.
Not allowed: uniforms, cash shortages, or bad checks (unless theft is proven).
Voluntary deductions
These are employee-authorized and may include:
Union dues
Charitable contributions
Voluntary retirement contributions
Insurance premiums
Voluntary deductions must be documented and only taken when sufficient wages are available.
Garnishment priority order
Bankruptcy (except child support)
Child support
Federal tax levies
Federal agency garnishments
State and local tax levies
Student loans
Creditor garnishments
Need help?
If you have questions or need assistance, please contact Salaris Payroll Support. We’re here to help.