What is payroll deduction?

[niyati]

I’m trying to understand how payroll deductions work, especially what amounts are typically taken out of an employee’s salary.

 

[maria]

Payroll deduction refers to the process where an employer withholds specific amounts from an employee's gross pay (total earnings before deductions) to cover various expenses, such as taxes, insurance premiums, retirement plan contributions, and other authorized deductions. These deductions can be mandatory (required by law) or voluntary (chosen by the employee). The remaining amount after deductions is the employee's net pay, or take-home pay.

 

[Olivia]

Payroll deduction is the amount of money your employer takes out of your paycheck before you get it. This can include required deductions like taxes and social security, as well as optional ones like health insurance or retirement savings. What’s left after these deductions is your take-home pay.

 

[ankita]

A payroll deduction is an amount an employer withholds from an employee’s paycheck for specific purposes. These can be mandatory, like taxes, Social Security, and Medicare, or voluntary, such as health insurance, retirement contributions, or loan repayments. Deductions reduce the employee’s take-home pay while fulfilling legal or chosen obligations.

 

[devinluke]

Payroll deductions are amounts of money subtracted from an employee's gross salary, resulting in their net pay or "take-home" pay. These deductions can be mandatory, such as federal and state taxes, Social Security, and Medicare, or voluntary, like contributions to retirement plans, health insurance premiums, or loan repayments, which require employee authorization.

 

[deepak]

A payroll deduction refers to an amount that an employer removes out of the paycheck of the employee to be used in certain ways. These may be taxes (income tax, social security, Medicare), benefits (health insurance, retirement plans) or voluntary deductions (charity, union dues). The deductions are used to offset the compulsory and optional financial obligations of employees.