I AM IN CHARGE OF PAYROLL AT AN OILFIELD COMPANY, WHEN I GET ALL MY INFO READY, THE CHECKS ARE REMOTED TO MY PRINTER. ON VACATION CHECKS MY CORP. OFFICE TAKES OUT THEIR CHILD SUPPORT, HEALTH INSURANCE,ANY REGULAR DEDUCTIONS, I KNOW TAXES COME OUT, BUT ALL DEDUCTIONS??!!
I normally would just hit delete on an e-mail that came in in all caps, as I figure I don’t need to be yelled at by people I don’t know. But, this question offered me a chance to use a whole new disclaimer: I am not in payroll. I have never been in payroll. I am not an accountant. My brother-in-law is an accountant, though, and he looks like an accountant. Seriously, if you were going to put up a poster of a typical accountant, you would put up my brother-in-law’s picture. (And I think, grammatically, that should be “brother’s-in-law picture,” but that sounds so wrong.)
All that stuff comes out when I take vacation. (Except for child support, of course, as I don’t owe anyone child support. My child just takes money directly from my wallet.)
But, why are you asking me? Pick up the phone and call your corporate payroll department. Phrase your question like this:
“Hey, I noticed that child support, health care, etc, comes out of vacation checks. I just wanted to to double check that that was correct, because I’m getting complaints.”
They will answer you. Then you’ll know the answer. (My guess is they are doing everything correctly, but I’ve been known to be wrong in the past. Like for instance, when I selected a paint color for my bedroom. “Golden” on a two inch piece of paper is very different than “golden” on all 4 bedroom walls. With a red bedspread, one can’t help but walk into our bedroom and say, “would you like fries with that?”)
Here’s a little golden rule about policies and practices that you don’t understand: If you ask the right person politely, you’ll find out the answer. So, call payroll and ask them.
5 thoughts on “Deductions and Unsolicited Advice”
Right on EHRL! But there is a fairly easy answer here. Generally, vacation is provided by companies as a benefit to employees; a chance to get a little R&R away from the job without concern for the source of your income (at least no more concern than normal). While the provision of vacation is not required by any law or mandate, companies do this to help attract and retain the best people – that, and we sort of expect it as employees. In the eyes of the government, however, if a company provides vacation, that money will be treated as wages.
If you weren’t off on vacation, you would be at work earning a wage and paying what you owe the government (taxes), company (benefits), and ex-wives (everything else). Your not being at work doesn’t mean that these liabilities go away. Just like your not staying in your house while out on vacation doesn’t mean you don’t have to pay the mortgage.
Well, anonymous, that makes sense.
In Canada anyway, vacation pay is considered insurable T4 earnings, meaning all deductions are applied as normal. Also, just an interesting note for you, in Canada, we are legislated in certain juristictions to provide a minimum amount of vacation pay. (not necessarily the time, but they are entitled to the vac pay) Most companies provide over and above the minimum anyway so it’s not usually an issue.
Truthfully however, I didn’t really want to answer this question, I just wanted to mention how hard I laughed at EHRL’s response to this one!!! LOL!!
Love the answer EHRL! It’s funny how people forget how easy it can sometimes be to get an answer these days, and that phones still exist. Pick one up, call the source, ask your question politely and (hopefully) get an answer.
“a picture of my brother-in-law” is the phrase you’re looking for.
Thanks for the continued blogging excellence.
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