Deductions are any item or expenditure subtracted from the employee’s gross income during payroll. Some deductions are related to business expenses, while other deductions are related to personal expenses. Company payroll deductions can include medical and vision benefits, union dues, retirement planning (such as 401(k) plans), employee health savings accounts, employee health improvement programs (such as smoking cessation, health club memberships, or weight reduction programs), fees or union dues, and education or trade school deductions.

Tip: See company deductions for more information about using deductions in online payroll.

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