CR Fletcher

2010 Greater Syracuse Business of the Year
C.R. Fletcher Associates, Inc.
Certified NYS Women-Owned Business Enterprise (MWBE)

Can we deduct for that?… Yes! By: Marielle Lanoir, PHR

In years past, under Section 193, employers in New YorkState had strict rules which they had to follow when it came to payroll deductions from their employees wages.  Employers could only deduct from wages for reasons including: insurance premiums, contributions to bona fide charitable organizations, U.S. bonds, dues or assessments to labor organizations, pension or health benefits and a few other lawful exceptions.

However, many individuals may not be aware that within the past 120 days, specifically on November 6, 2012, there were some huge revisions to Section 193, which came into effect.

Now, in addition to the above mentioned payroll deductions, employers can deduct the following from their employees wages:

  • Discounted parking passes or other items that allow employee to utilize mass transit
  • Fitness center, health club or gym membership dues
  • Cafeteria and vending machine purchases made at the employer’s place of business and purchases made at gift shops operated by the employer, where the employer is a hospital/college or university
  • Pharmacy purchases made at the employers place of business
  • Tuition, room, board, and fees for pre-school, nursery, primary, secondary, and/or post secondary educational institutions
  • Day care, before-school and after-school care expenses
  • Payments for housing provided at no more than market rates by non profit hospitals or affiliates thereof
  • Similar payments for the benefit of the employee
  • Recovery of an overpayment of wages where such overpayment was a mathematical or other clerical error by the employer
  • Repayment of advances of salary or wages made by the employer to the employee

Please note that in accordance with Section 193, “No employer shall make any deduction from the wages of an employee, except deductions which are made in accordance with the provisions of any law….and are expressly authorized in writing by the employee and are for the benefit of the employee…”.

These newly added deductions and revisions are a very important update in New York State Department of Labor’s Section 193, and are certainly of benefit to both the employer and the employee.  As of today, these revisions are in effect until the November 2015, at which point the Department of Labor will renew or amend them.

To view Section 193 and its provisions in its entirety, please visit:
http://www.labor.ny.gov/formsdocs/wp/LS605.pdf

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