There are two types of payroll deductions: those required by law and those you have authorized yourself.

The Federal and State Governments require the use of Withholding Taxes as a means of collecting your income tax as that income is earned. Deductions are made according to standard government tables, and will vary according to earnings, marital status, and number of allowances. Social Security taxes (FICA) are required of us all, up to the taxable limit of the given year. This taxable limit is determined by the Federal Government, and may change annually. Deductions authorized by you may include salary reductions for the ABC Corporation 401(k) Plan, health and/or dental coverage, Flexible Spending Accounts, etc. If you do not fully understand any aspect of your pay deductions itemized on your pay stub, please contact the Finance Department.