2415 Payroll Deductions and Reductions

Document purpose

To establish policy covering the types and amounts of deductions or reductions that the University will withhold from an employee's pay.

effective

July 2019

Reviewed

May 2023

Responsible Office

Comptroller

Approval

Comptroller

Policy

  1. The Office of the Comptroller is responsible for ensuring that mandatory deductions are affected and in compliance with governmental regulations and that voluntary deductions are affected in accordance with employee election.

  2. The Office of the Comptroller will withhold from the pay of each employee all statutory tax deductions. These include, but are not limited to, federal, state and local income tax withholding in addition to social security (FICA) and Medicare taxes.

  3. The Office of the Comptroller will withhold from regular pay voluntary deductions, reductions and shelters only after employee authorization through the Workday self-service module or the appropriate external process (e.g., Penn’s Way, Parking/Transit).  

  4. As required by law, the University will deduct all legal wage assignments, as described in Financial Policy #2416 Wage Attachments and Levies.

  5. The Office of the Comptroller is responsible for disbursing amounts withheld from employees’ pay to governmental or other agencies in accordance with statutory regulations or executed agreements.