What Are Payroll Deductions?
Payroll deductions are any amount of money that is withheld from an employee’s check. Payroll deductions could be used to pay for health insurance, taxes, union dues, and flexible savings accounts. Payroll deductions are also used to fund retirement accounts. With a payroll deduction, a certain amount of money will be taken out of an individual’s paycheck before he or she receives it. Many times, the payroll deduction will occur before taxes are taken out. This lowers the amount of money that is taken home by the employee and helps pay for a variety of different things.
