last updated: Thursday, July 8, 2004
General Information
There are a variety of salary deductions or salary reductions that may be withheld
from paychecks. Salary deductions are after-tax items charged against gross
pay in the computation of net pay. Salare reductions are before-tax items charged
against gross pay in the computation of net pay. Salary reductions generally
reduce the net taxable income for Federal or State income taxes.
Mandatory
Deductions/Reductions.
Some deductions/reductions
are mandatory for all employees, except those with special excemptions (e.g.
aliens from countries with which the U.S. has tax treaties). These deductions/reductions
include federal income tax and state income tax withholdings, social
security taxes, medicare taxes, agency shop fees (a fee equal
to union dues assessed to employees appointed to titles in a negotiating unit
who do not choose to join the union for services provided) or union dues,
and *retirement premium contributions. [ Note: Employees enrolled in
either the NYS Employees or NYS Teachers retirement systems in Tiers III and
IV must contribute until they have completed ten years of service. Employees
participating in the Optional Retirement Program (ORP) -- AIG Valic, ING, MetLife,
or TIAA, must continue to contribute to their defined contribution retirement
plan even after completing 10 years of participation.]
Voluntary
Deductions/Reductions.
Other deductions/reductions are voluntary depending upon enrollment in benefits
programs or other choices. Examples include *health insurance premiums,
purchase of savings bonds, donations to SEFA or campus foundations,
credit union deductions, *participation in tax deferred annuity programs,
or premiums for optional benefit programs, among others.
* Generally handled as "salary reductions". (See salary reductions below).
Two other types of deductions
that are unpleasant for both SUNY campuses and affected employees are:
Garnishment
The Office of the State Comptroller may receive legal garnishees requiring it to withhold wages from an employee's paycheck for payment of unpaid taxes, child support, alimony, or other debts or financial liabilities.It is important to note that these garnishees are often executed and reflected in an employee's paycheck before the campus payroll office or human resources office is even aware of them. Also, it should be noted that the campus human resources and payroll offices have no authority to start or stop such garnishees.
Similarly, the Office of the State Comptroller cannot start or stop a legally imposed garnishee without an order or a modification of an order from the garnisheeing authority. Therefore, employees should understand that, although SUNY campus staff may be sympathetic to the hardships created by the garnisheeing of an employee's wages, they are neither responsible for garnishees nor can they do anything to stop them. Employees upset over a garnishee itself, or the amount of one, must contact the external person or agency responsible for the garnishee to modify or remove a garnishee.
Parking Fines
State law authorizes the deduction of unpaid parking fines from the paychecks of SUNY employees appointed to the State payroll. Campuses should not exercise such authority until after normal collection procedures have failed and employees have been advised that this collection method is to be used.
Salary Reductions
Salary Reductions are amounts taken out of an employee's paycheck before taxes.
Examples are amounts contributed to a tax-deferred annuity, a supplemental retirement
annuity, or a deferred compensation program. Other examples include any required
contributions to a retirement program, or the health insurance premium, unless
the employee has opted to pay such premium after taxes. Like salary deductions,
salary reductions are reported on an employee's pay stub.
Reference(s):
Garnishment
http://www.dol.gov/dol/topic/wages/garnishments.htm
Getting
Paid by New York State
http://www.osc.state.ny.us/payroll/gettingpaid.pdf
Payroll
Deduction for Collection of Traffic Fines - Section 152, SUNY Procedures
Manual at:
http://www.suny.edu/FinanceandBusiness/FBAdmProc.cfm
Powers
to Regulate Traffic, scroll to Section 360
http://assembly.state.ny.us/leg/?cl=30&a=15