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A payroll deduction is an amount of money that is withheld from an employee's paycheck by their employer. These deductions are typically taken out of an employee's gross pay, which is their total earnings before taxes and other deductions are applied.
Employers must be sure that they are correctly calculating and withholding the appropriate amounts from employees' paychecks because the payroll deduction procedure can be complicated. This makes it easier to guarantee that employees receive the proper compensation and benefits and that the employer complies with all relevant laws and regulations.