Payroll Deduction is the amount withheld from an employee’s gross pay for taxes, benefits, or other obligations, such as health insurance or retirement contributions.
- What is a payroll deduction?
Answer: It is the amount withheld from gross pay for taxes or benefits. - What are examples?
Answer: Examples include federal taxes, 401(k) contributions, and union dues. - Is it mandatory?
Answer: Some, like taxes, are mandatory; others depend on employee choice. - How is it calculated?
Answer: It is calculated based on W-4 forms and benefit elections. - What role does HR play?
Answer: HR manages deduction setup and employee communication.
