What is a payroll deduction and what types are there?
A payroll deduction is any amount withheld from an employee's gross pay before or after taxes. Pre-tax deductions include 401(k) contributions, HSA contributions, health insurance premiums, and transit/parking benefits. Post-tax deductions include Roth 401(k), wage garnishments, union dues, and voluntary benefits like life insurance. Mandatory deductions include federal and state income tax, FICA, and court-ordered garnishments. Employers must honor specific priorities when multiple deductions compete against a paycheck.
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