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Voluntary Deductions Voluntary payroll deductions are the ones you control and choose. Along with health, life and disability insurance, these voluntary payroll deductions may include union dues, retirement or 401(k) contributions and flexible spending accounts for health care and dependent care expenses.
Mandatory Payroll Tax DeductionsFederal income tax withholding.Social Security & Medicare taxes also known as FICA taxes.State income tax withholding.Local tax withholdings such as city or county taxes, state disability or unemployment insurance.Court ordered child support payments.
What are payroll deductions?Income tax.Social security tax.401(k) contributions.Wage garnishments.Child support payments.
Deductions can be grouped into three categories: the standard deduction, itemized deductions and above-the-line deductions.
20 popular tax deductions and tax credits for individualsChild tax credit.Child and dependent care tax credit.American opportunity tax credit.Lifetime learning credit.Student loan interest deduction.Adoption credit.Earned income tax credit.Charitable donations deduction.More items...
Mandatory payroll deductions are the wages that are withheld from your paycheck to meet income tax and other required obligations. Voluntary payroll deductions are the payments you make to retirement plan contributions, health and life insurance premiums, savings programs and before-tax health savings plans.
What are payroll deductions?Income tax.Social security tax.401(k) contributions.Wage garnishments.Child support payments.
Sales taxes. You have the option of deducting sales taxes or state income taxes off your federal income tax.Health insurance premiums.Tax savings for teacher.Charitable gifts.Paying the babysitter.Lifetime learning.Unusual business expenses.Looking for work.More items...?
The law on wage deductionsTaking money from wages without consent or contractual provision can result in a claim for unlawful deduction of wages, even if the individual has been employed for less than two years.
Common itemized deductions include interest on a mortgage loan, unreimbursed healthcare costs, charitable contributions, and state and local taxes. Please consult a tax professional to determine whether a standard deduction or itemizing works for your financial situation.