What is typically included in a payroll deduction?

Excel in the Fundamental Payroll Certification! Enhance your knowledge with flashcards and multiple-choice questions, complete with detailed explanations. Prepare thoroughly for your certification exam!

Health insurance premiums are typically included in payroll deductions because they are amounts that are deducted from an employee's gross pay before the net pay is calculated. These deductions represent the employee's portion of the costs for their health insurance coverage, and they are commonly deducted on a pre-tax basis, which can offer tax advantages to employees.

In the context of payroll, other items such as bonuses, stock options, and training expenses do not fall under the category of payroll deductions. Bonuses are additional compensation, stock options are equity compensations provided under specific plans, and training expenses may be covered by the employer but are not typically deducted from employees' salaries. Thus, health insurance premiums stand out as a typical payroll deduction that directly reduces the employees' take-home pay to cover their contributions to health insurance plans.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy