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I received a bonus in a xmas card from my employer. I also quit that day. When I received my last paycheck, the bonus was deducted as a "gift deduction". Is this legal? It was not a loan or anything of the nature.

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    What jurisdiction? I assume you were a regular employee rather than a contractor, correct? – Dave D Jan 02 '19 at 16:41

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They probably didn't actually take back the gift.

If your pay is $1000, and you then get $100 in a card, the employer must report this for tax purposes. So they list your pay as $1100, deduct the proper taxes, and then deduct the $100 (since they already gave it to you in the card.)

D M
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