Deductions from paychecks

I just posted a question on health insurance and in the interum, was reading some other posts. I now have a new question. Is it legal to be deducting the health insurance premiums if the employee has never signed anything stating that the company can? I have many issues with this company and feel that what they are doing in many areas is illegal. Thanks!

Comments

  • 3 Comments sorted by Votes Date Added
  • It is my understanding that the only thing you can legally deduct from a paycheck without a signature is taxes and court ordered deductions. Didn't the employees complete an election form? If so, didn't they sign it? If not, they have not elected coverage. I would get any unsigned forms taken care of right away.
  • Generally, what can and cannot be deducted from paychecks is covered by state law. For example, many states require a written agreement to deduct for anything other than taxes and court ordered withholdings (like child support and student loans). Some states may also have maximum limits on the amount that can be deducted.

    In short, you will need to check your state's law to fully answer your question.

    Good Luck.
  • Our company has employees sign the health insurance form and also a pretax deduction form that states the employee authorizes pretax deductions form their payroll check.
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