Payroll Deductions

Need information about payroll deductions? Payroll deductions are either mandatory or voluntary. Mandatory Payroll Deductions: The employer is required by law to withhold payroll taxes from an employee's gross pay prior to issuing a paycheck to comply with government regulations. These are the mandatory payroll deductions for taxes. Federal income tax,State taxes, and Local (city, county) income tax withholding in some areas. (Other local taxes can include school district taxes, community college taxes, state disability or unemployment insurance, for example.)