Payroll Deduction

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We all know that what an employee earns is not what they bring home. The primary reason for this difference lies in the number of payroll deductions taken from an employee’s wages. In this article, let’s find out about payroll deductions and why you must know about them. 

What are payroll deductions? 

Payroll deductions refer to the amounts that are taken from an employee’s paycheck every pay period. There are several types of deductions that can be classified as being mandatory or involuntary. Payroll deductions are used for different purposes such as payment for taxes, benefits, and garnishments. Furthermore, payroll deductions can also be pre-tax or post-tax. 

What are mandatory payroll deductions? 

When we say mandatory payroll deductions, these are the types of deductions that employers are required to withhold by law. Failure to pay for these payroll deductions can result in penalties. What are these?

What are voluntary payroll deductions? 

When we say voluntary payroll deductions, this means that employees give consent and choose to have these amounts deducted from their paycheck. The following are common examples of voluntary payroll deductions:

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