Payroll Deductions - Please help ASAP!

AML

In an auto dealership, there are month-end "chargebacks" against commissions paid the prior month. For example, if a customer opted out of an extra aftermarket product after the F&I employee received their commission based on the sale of that product. This is currently done pursuant to a written policy acknowledged in writing by the salespeople to which it applies. Do we also need to have each employee sign a payroll deduction authorization form? If so, can it be signed once and reference the pay plan or does each employee need to sign each month for the deduction of each chargeback? If yes to the latter, do we need spouses to consent as well? Thanks for the input!

Kathy in Alabama

We have commissioned employees who are subject to chargebacks as well. When commissioned employees are hired, they sign an employment contract that includes the terms of their commission calculation including a paragraph about chargebacks for sales for which commission is paid, but in subsequent months the cash is not collected. Our General Manager signs the contract when they are hired as well. Then, I pay them per the terms of their employment contract and use no additional paperwork for monthly chargebacks if / when they occur. The spouse is not involved int he process at all. Hope this helps!

AML

We have written compensation contracts also that address the chargebacks. Under Ohio law, need to include magic language that the assignment is revocable at any time upon notice by the employee.