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What are the common deductions taken from employee and employer payroll? Describe two of these deductions...

What are the common deductions taken from employee and employer payroll? Describe two of these deductions in detail. What voluntary deductions are/or have been taken from your paycheck?

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Expert Solution

There are many deductions which are taken from payroll.Out of which some are mandatory & some are voluntary.

Mandatory deductions are those which are required by Federal law or state law to deduct & remit it to government authority.

Federal Income tax Withheld This deduction is required by Internal Revenue Service.Amount of tax deduction is depend on employee income & exemptions that an employee claim..Amount which is subject to tax & amount of taxes withheld is reported to payee & government authority.

Garnishment This deduction is made when your employee has unpaid debt.To withheld this payment order or notice from court is required.Wage garnish continue till entire debt is paid off.

Voluntary deduction are those which are not required by law.These deductions are made only when it is authorised by employee.

  • Health & life insurance Premium
  • Retirement benefit plan

ekkarill92 answered 1 year ago
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