A Deduction in HR is an amount subtracted from an employee’s gross pay for taxes, benefits, or other authorized expenses, reducing their net paycheck.
- What is a deduction?
Answer: It is an amount subtracted from gross pay for taxes or benefits. - What are common types of deductions?
Answer: Types include federal taxes, health insurance, and retirement contributions. - How are deductions calculated?
Answer: They are calculated based on tax rates, benefit costs, or employee elections. - What is the difference between pre-tax and post-tax deductions?
Answer: Pre-tax deductions reduce taxable income, while post-tax do not. - How can employees review their deductions?
Answer: They can review them on pay stubs or through HR portals.
