Payroll Deductions

Payroll deductions are payments withheld from an employee’s paycheck by the employer. Examples include: Federal and state income taxes Insurance premiums Retirement contributions Wage garnishments Medicare and social security taxes Most payroll deductions are voluntary and can be taken out of a paycheck on a pre tax or post-tax basis. Taxes and wage garnishments, on the other hand, are mandatory and employers who fail to accurately withhold these …

What is payroll processing?

Processing payroll means paying employees for their work. To do this accurately and in compliance with all regulations, you will need: A payment schedule Employer identification number W-4 and W-9 forms Pay statements A payroll manager Time and attendance tracking Calculating payroll taxes and withholding deductions are also required. Many companies use payroll software to automate payroll processing, which ensures efficiency and accuracy. Determine a …