The Voluntary Payroll Deduction (VPD) program is a benefit offered to the state and some education workers, allowing them to request payroll deductions from their paychecks to be paid automatically. Here are some common examples of voluntary payroll plans: Payroll plans offer employees a convenient way to automatically contribute income to an ongoing expense or investment. For example, it`s common for employees to deduct a fixed percentage of income and contribute it to their traditional individual retirement account (IRA) or Roth IRA. An employee may also choose to have premiums deducted from an insurance policy from their salary to ensure that payment is never missed. Some payroll plans may also include voluntary and systematic deductions for the purchase of common shares. In such cases, the employee opts for his or her employer`s stock purchase plan and a portion of each paycheque goes to purchase shares of his or her employer, usually at a discounted price. In an example provided by the Securities and Exchange Commission (SEC) with respect to the payroll deduction plan for shares of employees of Domino`s Pizza, Inc., eligible employees may elect to use 1 to 15% of their paycheck to purchase shares of the company that are valued at 85% of the fair market value of the date the option is exercised. A payroll deduction system refers to when an employer withholds money from an employee`s paycheque for a variety of purposes, but most often for benefits. Payroll deduction regimes can be voluntary or involuntary.
A common example of an involuntary payroll deduction plan is when an employer is required by law to withhold money for Social Security and Medicare. A voluntary payroll deduction regime occurs when an employee selects an employer and gives them written permission to withhold money for specific purposes, such as. B a pension scheme, health insurance or life insurance premiums. You can use the menus at the top of this page, check out our sitemap, or browse our website: ©2011 Texas Workforce Commission Sitemap Policies Report Fraud: 800-252-3642. Customers who are deaf, hard of hearing or hard of hearing can contact Relay Texas: 800-735-2989 (TTY) and 711 (Voice). Equal opportunities are the law. VPD alert groups are available for individuals to choose whether or not to receive information about different programs. To receive a notification when a change is made to one of the programs, click one of the following links, and then follow these instructions: Select the check box for any additional topics on the Subscribe quickly page, and then select Submit. The Texas Workforce Commission`s values: community, responsibility, innovation, responsibility, commitment to excellence and partnership. The page you requested is not available. We apologize for the inconvenience and would like to help you find the information you need. .