Authorized Deductions to Non-Exempt Employees' Wages

New Legislation Enacted

On June 20, 2018, Act No. 115 was enacted, extending the list of authorized payroll deductions. Specifically, Act No. 115 provides that, upon the employee's written authorization, an employer may prospectively deduct or withhold a fixed amount of money from the employee’s wages in the employee’s regular pay cycle to fully repay (without interest) the sum corresponding to a loan, salary advance, or any equipment, material, or goods the employer provided that is directly related to an emergency situation (as defined in the Act). For this deduction to apply, certain conditions must be met.

Extension of Deadline to Make Hurricane-Related Retirement Plan Distributions

New Regulation or Official Guidance

Last year, the Puerto Rico Department of the Treasury issued guidance for temporarily allowing distributions from an IRA or a Puerto Rico qualified retirement savings plan post Hurricane Maria, subject to a favorable tax treatment (eligible distributions) during the eligible period (i.e., from September 20, 2017, through June 30, 2018). The Puerto Rico Department of the Treasury recently extended the eligible period until November 30, 2018. For distributions received between July 1 and July 31, 2018, to be considered eligible distributions, they must comply with the guidance issued last year, in addition to satisfying various additional conditions.