10/20/2026
As payroll specialists, we often run into questions from business owners about what payroll deductions are and why they matter. So, we wanted to share a brief overview.
Payroll deductions are amounts subtracted from your employees' gross wages before their net pay is deposited into their bank accounts. These can include mandatory deductions such as federal and state income taxes; Federal Insurance Contributions Act (F**A) taxes, which fund Social Security and Medicare; and voluntary deductions such as retirement plan contributions and health insurance premiums.
Understanding how deductions work is an important part of staying compliant and keeping your team informed. So, if you have questions about payroll for your business, don't hesitate to reach out to our team today. We are here to help.