Payroll Deductions in 2026 – What CAN and CANNOT Be Deducted from an Employee’s Wages

Overview:

Payroll deductions remain one of the most high-risk and heavily regulated areas of payroll compliance. As new federal and state regulations take effect in 2026, employers and payroll professionals must ensure they are accurately deducting wages in accordance with evolving laws, documentation requirements, and employee consent standards.

This webinar delivers a comprehensive and compliance-focused review of payroll deductions in 2026, including both statutory and voluntary deductions. Participants will examine current regulatory requirements, recent legislative updates, and emerging trends that directly affect how deductions are calculated, authorized, and reported.

Areas Covered in this Training:

1. Understanding Wage/Payroll Deductions

• What are Payroll Deductions? – Definition and general concepts
• Types Of Deductions: Statutory vs. Voluntary Deductions
• Why are Deductions Important? Legal compliance; Employee relations; Payroll accuracy
  
   

2. Key Payroll Deductions in 2026 

• Statutory Deductions (Required by Law) – Federal income tax (with 2026 updates); State and local taxes (noting 2026 legislative changes); Social Security and Medicare (FICA); Unemployment insurance; Wage garnishments (e.g., child support, tax levies, creditor Garnishment)
• Voluntary Deductions – Retirement plans (401(k), Roth 401(k), etc.); Health, dental, and vision insurance premiums; Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA); Union dues and other membership fees; Uniforms, Meals, Lodging, shortages, Breakages
• Overpayments — if employee was overpaid, can you just take the money back, or can you?
• Advance Vacation Pays, Loan to Employees, Employee Purchases, Anti-Wage Theft Laws
  
   

3. Recent & Upcoming Changes for 2026

• Federal and State Legislation Updates – New laws/regulations effective in 2026; Adjusted tax rates and contribution limits; Emerging trends (e.g., remote work impact, gig economy
• Technology and Payroll Software – Automation and compliance tools; Data privacy and cybersecurity considerations
  
   

4. Best Practices for Employers

• Ensuring Compliance – Recordkeeping requirements; Regular audits and error prevention; Employee consent and communication
• Handling Employee Inquiries – Explaining deductions on pay stubs; Addressing disputes and correcting errors

Why You Should Attend

This webinar helps payroll, HR, and accounting professionals stay compliant with 2026 payroll deduction rules while earning continuing education credit. Attendees will gain a clear understanding of what deductions are permitted, required, or prohibited, learn how to avoid costly wage-and-hour errors, and improve confidence in managing employee inquiries. This session provides practical guidance to support accurate payroll processing, regulatory compliance, and audit readiness in 2026.

Suggested Attendees

• Payroll professionals and payroll managers
• Human resources professionals and HR leadership
• Accounting and finance professionals
• Compliance officers and internal auditors
• Business owners and operations managers
• Payroll service providers and consultants
• Professionals responsible for wage payment, deductions, payroll processing, or reporting
   

Ask your question directly from our expert during the Q&A session following the live event.