Pennsylvania Deductions from Pay laws & HR compliance analysis

Pennsylvania Deductions from Pay: What you need to know

Under Pennsylvania law, an employer may deduct from an employee's wages only charges required by law, permitted by law, or authorized by the employee in accordance with state law (PA Admin. Code Ch. 34, Sec. 9.1).
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Deductions required by law include Social Security taxes, federal and local income taxes, occupation privilege taxes, and court-ordered garnishments or other deductions (PA Admin. Code Ch. 34, Sec. 9.1).
Employers may deduct 2 percent of an amount withheld as a garnishment pursuant to a tax or support order as an administration fee. There is additional information on garnishment.
The following deductions may be made if authorized in writing by the employee or a collective bargaining agreement for the following items (PA Admin. Code Ch. 34, Sec. 9.1):
• Payments into company-owned thrift plans or stock option or purchase plan
• Payment into personal savings accounts; Christmas, vacation, or other savings funds; purchase price of U.S. government savings bonds
• Charitable contributions
• Contributions for local area development activities
• Labor organization dues, assessments, initiation fees, and other labor organization charges authorized by law
• Repayment to the employer of bona fide loans as long as deductions were authorized in writing at the time the loan was made
• Payment for the purchase or replacement from the employer of goods, services, facilities, rents, or similar items
• Payment for the purchase from third parties of goods, services, facilities, rents, or similar items
• Payment authorized in writing by employees that, in the discretion of the Department of Labor and Industry, are proper and conform with the intent and purpose of the Wage Payment ...

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Pennsylvania Deductions from Pay Resources

Type Title
Forms Training Expense Agreement
Policies Payroll Deductions (Standard)
See all Deductions from Pay Resources