Payroll Deductions
Pay stub deductions explained.
Pay stub deductions are amounts subtracted from gross pay to reach net pay. They may include required tax withholding, employee-authorized benefits and other lawful deductions.
The short answer
A deduction should identify what was withheld, the amount for the current pay period and, when applicable, the year-to-date total. Required and voluntary deductions should be separated clearly so the worker can understand how gross earnings became take-home pay.
A pay stub generator organizes the figures entered. It does not decide whether a deduction is lawful or calculate every jurisdiction’s requirements automatically unless that feature is expressly provided.
Common categories of deductions
Federal income tax withholding is generally based on taxable wages, payroll frequency and the employee’s Form W-4 information. Social Security and Medicare withholding may also appear. State and local taxes depend on where the employee works and lives.
Voluntary deductions may include health insurance, retirement contributions, flexible spending accounts, union dues or other authorized benefits. Post-tax items are taken after applicable taxes; pre-tax treatment depends on the plan and governing rules.
Other deductions can include properly authorized repayments, garnishments or levies. Employers should confirm limits and notice requirements before withholding any amount.
How to review deductions on a pay stub
Start with gross pay and list each deduction separately. Confirm whether the item is pre-tax or post-tax, check the current-period amount, and reconcile year-to-date totals with the previous payroll record. Net pay should equal gross pay minus taxes and deductions, subject to any additions or reimbursements.
Use current IRS Publication 15 and Publication 15-T for federal withholding guidance. The U.S. Department of Labor’s wage-deduction guidance explains how some deductions interact with federal minimum-wage rules.
Related payroll concepts
To see where deductions fit in the complete calculation, review gross pay versus net pay, year-to-date totals and our pay stub terminology glossary.
Frequently asked questions
Are all deductions taxes?
No. Deductions can include required taxes, benefit contributions and other authorized amounts.
What is a pre-tax deduction?
It is an eligible deduction applied before certain taxes are calculated. Treatment depends on the plan and tax rules.
Why did net pay change?
Changes in hours, earnings, tax information, benefits or other deductions can change take-home pay. Compare both current and YTD figures.
Reviewed August 26, 2026. General educational information, not legal, tax, accounting or payroll advice. See our editorial standards and responsible-use policy.
Organize deductions into a clear pay stub.
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