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What are the deductions?

Payroll deductions are amounts taken out of an employee’s paycheck each pay period, such as:

  • Federal Holding: It is calculated based on your employees’ Form W-4 information as well as their gross pay.
  • State and local taxes: Each state has its own income tax structure. This value is assumed only by the employer.
  • FICA tax: It's made up of Social Security and Medicare taxes. Both the employee and employer contribute to FICA tax equally.