Regulation .07 Failure to Deduct from Payroll.

If an employer fails to make the proper deduction from an employee’s pay, that employer is considered to have elected to pay the employee’s portion for each pay period the employer fails to make the deduction.

The employer is liable to pay the portion of the employee share and may not recoup the employee share attributable to a past pay cycle on future pay cycles.

Notwithstanding §§A and B of this regulation, within the immediately following 6 pay cycles, an employer may recoup the employee share attributable to a past pay cycle if there are insufficient paycheck funds due to other required federal, state and local withholdings that take precedence.