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Money taken out of a salary for such things as taxes, insurance, and retirement funds are called deductions.
Money taken out of a salary for such things as taxes, insurance, and retirement funds are called deductions.
Compulsory deductions are taken from your check whether you agree or not, such as happens with taxes. Voluntary deductions are those you ask for, such as money to be deducted and placed into your retirement savings account.
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Your gross is the TOTAL amount. Your net would be the amount after all of the deductions are taken out. (health insurance, dental insurance, child support, federal taxes, local taxes, etc.) Each individual is different.
The amount that the state of Alabama can garnish your check is no more than 25%. This is after taxes and other deductions have been taken out.
The taxes are sent to the taxing authorities. For example, your federal income taxes and Social Security taxes are sent to the IRS. State taxes are sent to your state tax department. Other deductions are sent to the appropriate party. Charity deductions are sent to the charity. Insurance deductions are sent to the insurance company (or kept by your employer if they are self-insured). Savings deductions are sent to the savings institution. 401k deductions are sent to the 401k trustee.
It means your gross income minus the net tax deductions, the tax deductions as federal income taxes, state taxes, Fica, medicare, SUI/SDI. Other taxes are not included, such as, life insurance, charity, or debts that are taken automatic from your paycheck.
Post tax deductions are deductions that are figured after taxes have already been taken out, such as a pay advance repayment. Pretax deductions are deducted from gross pay, then federal and state income taxes are determined on the net amount.
Gross annual salary is the amount of money a person made in 1 year. This amount is before taxes, insurance, child support, or any other deductions were taken out.
Can you still file income taxes even though no federal taxes were taken out of check?
It's called your Net Pay... So that's what's left after taxes and everything else has been taken out of your gross pay. The Gross Pay is your full check IF nothing had been taken out of it. However, no one gets all of their Gross Pay on payday, because SS, taxes, and other deductions are withheld on your behalf.