Question

In case of absence from work without valid reasons (AWOL), damage to or loss of goods entrusted, what is the maximum percentage that can be deducted as an authorized deduction from the salary?

Answer 1

Deductions from an employee's salary for AWOL or damage to goods must not infringe upon guaranteed minimum wages. The actual maximum percentage allowed for such deductions depends on state laws and company policies and cannot lead to an employee earning less than the minimum wage.

Step-by-step explanation:

The question concerns the maximum percentage that can be deducted from an employee's salary for reasons such as absence from work without valid reasons (AWOL) or damage to or loss of goods entrusted. It's important to note that deductions for such reasons must be handled with caution to not infringe upon guaranteed minimum wages.

Employers have obligations to withhold taxes like income tax, social security contributions, and insurances, known as withholding tax, PAYE, or PAYG. However, unauthorized deductions that lead to employees earning less than the guaranteed minimum wages can be illegal.

The legal limit regarding deductions for such issues like AWOL or damage to goods varies depending on state laws and company policies. Typically, any amount that an employer wishes to deduct that would bring an employee's earnings below the federal or state minimum wage would not be permitted.