An employer is allowed to deduct:
- court-order child support and alimony
- guaranteed student loan wage
- IRS tax levies
- withholding tax
- FICA tax
- any garnishments mandated by a federal court from an employee’s paycheck
With a written deduction authorization, an employer may deduct child and spousal support administrative fees; student loan wage attachment fees; meals, lodging, and other facility costs; voluntary wage assignments; loans; wage and salary advances; vacation pay advances; wage overpayments; uniform and uniform cleaning costs; union dues; misappropriated cash; and any other deduction for a lawful purpose, which can include store inventory sold on credit; personal use of company equipment or accounts; damage or loss caused by the employee; employee physicals and drug screens; non-work related training paid for by the employer; and employee’s traffic tickets, bail, and court costs paid by the employer.
Some of these deductions are not allowed if it takes an employees pay below minimum wage.
Under Texas Payday Law Rule 821.28(b) a written authorization for deductions shall be specific as to the lawful purpose for which the employee has accepted the responsibility or liability. Written authorizations shall be: (1) sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and (2) a clear indication that the deduction is to be withheld from wages.
Read more about paycheck law on the US Department of Labor's website.