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Common Paycheck Deductions

Every pay period, money is taken out of your check for taxes and other deductions based on your authorized selections. Here is a list of common paycheck deductions:

• Income tax withholding: Money is withheld for federal, and often state, income taxes. Federal income tax is often the largest deduction from your paycheck.
• Federal Insurance Contributions Act (FICA) tax: This tax pays for Social Security (the program that pays your retirement benefits) and MedicareMedicare
  A Federal government program that provides health care insurance to people aged 65 years or older, a... more. You'll pay 7.65% of your income into FICA and your employer pays the other half.
• Other taxes: Some states charge additional taxes to cover state disabilitydisability
  A physical or mental impairment that substantially limits one or more of the major life activities o... more insurance and/or unemployment benefits. Usually, these are a percentage of your gross pay, and maximum limits often apply.
• Health benefits: Even though health benefitbenefit
  The term "benefit" may refer in general to a health plan (your "benefits"), specifically define the ... more premiumspremiums
  The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more are deducted from your paycheck, it is almost always cheaper to go through your employer than trying to find health, vision or dental insurance on your own.
• Retirement savings plan: Or more commonly known as your 401(k)401(k)
  A 401(k) is a type of personal pension plan offered by an employer. It provides tax advantages on mo... more. Remember, even putting a little bit of money toward your 401(k)401(k)
  A 401(k) is a type of personal pension plan offered by an employer. It provides tax advantages on mo... more can lead to big savings once you hit retirement age.
• Life insurance: Employers often pay the premiumspremiums
  The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more for a minimum amount of coverage, but workers may contribute to the cost, as well.
• DisabilityDisability
  A physical or mental impairment that substantially limits one or more of the major life activities o... more insurance: This coverage replaces lost income if the worker is disabled due to an accident or an extended illness and is a great benefitbenefit
  The term "benefit" may refer in general to a health plan (your "benefits"), specifically define the ... more if the employer offers it.

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