A New York Labor Law effective late last year allows employers to deduct the cost of an array of employee benefits previously barred by the New York state code. By broadening the types of benefits that can be payroll deducted, employers now can provide more complete worksite and non-traditional offerings in their benefits packages and employees can choose programs and services best suited to them.
As a result of the expanded deduction law, most employers will consider additional payroll deduction programs and benefits, and re-evaluate practices or policies that fell out of favor or were even discontinued due to the restrictions on deductions imposed by the state’s Department of Labor.
Purchasing Power commends the New York General Assembly for relaxing the law. It means that among the variety of new programs New York employers can offer as a payroll-deducted voluntary benefit are employee purchase programs. These programs give eligible workers the ability to buy products and services in a financially responsible way.
Purchasing Power products and services are available to New York employees (excluding public employees). According to the legislation, deductions “cannot exceed ten percent of the employee’s gross wages (minus required deductions) for the pay period.