Payroll Deduction

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Payroll Deduction

What is a Payroll Deduction?

Amount deducted from an employee's salary for the payment of taxes, or insurance is known as payroll deductions. Payroll deductions are both mandatory and optional. Since certain deductions are made pretax, and others are made post-tax, the order in which they are taken out of paychecks is also essential.

What are the types of Payroll Deductions?

The following are payroll deduction types:

  • Garnishment
  • Social Security
  • Loan installment deductions
  • Insurances
  • Medicare
  • Local, State(s) and Federal Taxes
  • Retirement Plan(s), as many as opted for / available
  • Charity payments

Moreover, there are some volunteer payroll deductions, following are a few:

Related: After Tax DeductionBefore Tax Deduction, PayrollPayroll Software, Payroll ActivitiesPayroll ServiceEmployer Payroll Taxes, CPP

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