• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Can we make payroll deductions to pay for employees’ mistakes?

by on
in Compensation and Benefits,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

Q. Our staff includes employees who do repair work and are paid by the job. We offer a 90-day guarantee to our customers. If a customer has to have a repair redone, can we deduct from the employee’s subsequent wages the money we paid for the faulty first repair?

A.
Colorado wage law imposes strict limits on deductions from wages. You should get an agreement with your employees that the wages are not “fully earned” until the 90-day period expires without a return, and an agreement that deductions for charge-backs within the 90 days are permitted. However, be aware that deductions cannot bring an employee below minimum wage.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/4505/can-we-make-payroll-deductions-to-pay-for-employees-mistakes "

Leave a Comment