can I deduct money from an employees pay check for money I the employer loaned to them?

Answer 1

You should call it an "advance" on their salary or earnings. Then, you can deduct the amount given to them because it is actually just their earnings minus the advanced payment.

Answer 2

NO
The only people are who allowed to deduct money from an employees paycheck are the tax people, or to pay employee's insurance costs

You should have the employee cash the check (in front of you if possible) and then pay back the loan

Answer 3

If it was a personal loan-no. If it was cut off of your payroll account and coded as a loan or advanced pay check and a contract was signed by both parties agreeing to the price and deductions-yes.

Answer 4

Depends :)

Do you have a written note saying that you can do this? If not, most state employement laws are written so that you can't deduct anything from a paycheck unless it is authorized by the employee or mandated by statue (taxes).

In general, you can't, but you can always get permission.

Answer 5

Yes, with their written permission. Of course their failure to give you permission could lead to grounds of termination based on theft under the right conditions.

The key question is do you have a promissary note? What were the agreed terms of the loan and is it in writing?

Answer 6

If you set it up as a company loan..yes...it you set it up as a personal loan and had them sign as to that and the company paid you and you agreed to say 4 installments at a fixed amount, yes, but if there is no paperwork involved as a company or personal loan..I would suspect no.....

Answer 7

I DONT THINK IT IS LEGAL, YOU SHOULD HAVE GOTTEN A SIGNED METHOD OF REPAYMENT FROM THEM. gOOD LUCK GETTING YOUR MONEY BACK