Can deductions for the employer′s benefit (such as deductions for damage caused by the employee or for repayment of loans to the employee) be made from an employee's paycheck? July 28, 2021 20:22 Yes, but only so long as any such deduction does not take a covered employee's wages below the state hourly minimum wage rate. Related articles Does an employer have to furnish employees with a statement of deductions? If an employee quits his job, when are the final wages due to him? Do employers have to post a Minimum Wage poster in the workplace? Where can I get a Federal Employer Identification Number (FEIN)?