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Deductions may only be made from an employee’s pay if they are required by law, agreed to by the employee or are overpayments in some circumstances. · What Is a Tax Credit? Subtract tax credits from the amount of tax you owe. There are two types of tax credits: A nonrefundable tax credit means you get a refund only up to the amount you owe. When deductions may be required. Your employer may be required to deduct your salary: By court order, or other valid authority. If your employer is declared an agent for the recovery of income tax, property tax or goods and services tax (GST) payable by you.
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