Understanding Paycheck Deductions: What Is Taken Out of Your Salary?

Learn about common paycheck deductions like taxes, insurance, and retirement contributions.

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Common deductions from your paycheck include taxes, Social Security contributions, and health insurance premiums. Additionally, you'll see deductions for retirement plans like a 401(k) if you have one, and possibly other benefits such as life insurance or union dues. Always review your pay stub to understand each deduction.

FAQs & Answers

  1. What are common deductions from a paycheck? Common deductions include taxes, Social Security contributions, health insurance premiums, and retirement plan contributions.
  2. How can I review my paycheck deductions? Always review your pay stub, which outlines each deduction from your salary.
  3. What is a 401(k) and how does it affect my paycheck? A 401(k) is a retirement savings plan, and contributions reduce your taxable income, impacting your take-home pay.

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For more insights on personal finance, explore our videos on budgeting tips and understanding taxes for employees. Stay informed about managing your finances effectively!

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