Pay Deductions and Setoffs

The law requires that Hollon Oil Company make certain deductions from every employee's compensation. Among these are applicable federal, state, and local income taxes. Hollon Oil Company also must deduct Social Security taxes on each employee's earnings up to a specified limit that is called the Social Security "wage base." Hollon Oil Company matches the amount of Social Security taxes paid by each employee.

Pay setoffs are pay deductions taken by Hollon Oil Company, usually to help pay off a debt or obligation to Hollon Oil Company or others.

If you have questions concerning why deductions were made from your pay check or how they were calculated, your supervisor can assist in having your questions answered.

Policy No.  410      Applicable  10/31/07