Employers can legally make deductions from your paycheck, but they must abide by certain limitations. As an employee, it is important to familiarize yourself with these income cuts to ensure that you are receiving the correct pay. Understanding the difference between what employers can and cannot do can help you protect your wage.
Legal deductions employers can make
Florida has a payroll tax structure that differs from other states. For instance, the state permits employers to collect federal income tax instead of state income taxes from employees. The value may vary for each employee, as it depends on gross annual income, filing status and employer-sponsored plans.
Additionally, organizations must deduct federal income tax and funding for Social Security and Medicare. Under the Federal Insurance Contributions Act (FICA), employers allocate 6.2% of your gross income for Social Security tax. Meanwhile, 1.45% of your gross wage goes to Medicare tax.
When a deduction is illegal
While Florida does not have a statute governing wage deductions, it adopts the terms set by the Fair Labor Standards Act (FLSA). The FLSA authorizes employers to make specific deductions from an employee’s paycheck, provided that the final amount does not fall below the current minimum wage.
Your employer can reduce your wages to pay for uniforms, tools of trade and cash advances. If their cuts are lower than $14, they may have violated the FLSA.
Actions to take against illegal paycheck deductions
When you notice that deductions have brought your wage below the minimum rate, you should first discuss the issue with your employer. It is possible that they have made errors when calculating their abatements.
If your employer continues to make illegal deductions, consider seeking legal advice from an employment law attorney. They can review your pay stubs and provide options to dispute your wage.