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What are payroll deductions?Income tax.Social security tax.401(k) contributions.Wage garnishments.Child support payments.
Payroll deductions are the specific amounts that you withhold from an employee's paycheck each pay period. There are two types of deductions: voluntary deductions, such as health insurance and 401(k) deductions, and mandatory deductions (those required by law), such as federal income taxes and FICA taxes.
Payroll deduction agreements are agreements where employers deduct payments from taxpayer's wages, and mail them to the Internal Revenue Service. Direct debit installment agreements allow the IRS to debit taxpayers' bank accounts.
How Do I Show a General Journal Entry for Company Deductions From Employee Payroll?Debit "Wages Expense" for the full amount the company must pay for the pay period.Credit "Net Payroll Payable" and any deductions required.Add the total number of debits and then add the total number of credits.More items...
Some common voluntary payroll deduction plan examples include: 401(k) plan, IRA, or other retirement savings plan contributions. Medical, dental, or vision health insurance plans. Flexible spending account or pre-tax health savings account contributions.