Deductions from the final paychecks of retiring employees:
If what is being paid to the employee is pensionable regular compensation, then retirement deductions have to be withheld. Without the deductions, the time and salary associated with the paycheck can not be included in the retirement calculation for this person, resulting in a reduced benefit. Lump-sum payments for unused benefit time is an exception, otherwise, don’t stop the deductions. Please call us if you have questions.