Are you curious about the various codes hidden within your pay stub? Well, let's dive into the intriguing world of paycheck deductions!

Are you curious about the various codes hidden within your pay stub? Well, let’s dive into the intriguing world of paycheck deductions!

A common deduction on a person’s pay stub would be the substantial taxes, including federal and state income taxes, in addition to contributions made towards Social Security. These tax components often take center stage in your financial journey.

With our expertise in the payroll process, we at Check Stub Maker are your go-to source for deciphering your pay stub piece by piece.

Join us on this enlightening journey as we give you a paystub important message and explore the myriad of mandatory and voluntary deductions, from FICA to job-related expenses.

Let’s get started!

What this article covers:

Most Common Deductions on a Person’s Pay Stub

Federal And State Income Taxes

Federal and state income taxes are among the most prevalent deductions on pay stubs.

Our findings show that these taxes are withheld by employers based on the employee’s filing status and the number of allowances claimed on their W-4 form.

Federal income tax is levied by the federal government, while state income tax varies depending on the state’s regulations.

Social Security

Social Security deductions are another common aspect of pay stub deductions.

As per our expertise, this deduction is a mandatory contribution to the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals.

The amount deducted is calculated based on a fixed percentage of the employee’s gross wages, up to a specified yearly limit set by the Social Security Administration.

At Check Stub Maker, we’re adept at helping you understand these deductions through our user-friendly pay stub creator, ensuring clarity and transparency in the payroll process.

Mandatory Payroll Deductions

Let’s take a look at some common examples of mandatory tax deductions.

Table: Common Types Of Mandatory Tax Deductions

Deduction Type Description
Local Taxes
  • Deductions imposed by local governments
  • Examples are city or county taxes
Wage Garnishments
  • Involuntary deductions used to satisfy debts or legal obligations
  • Examples are court-ordered deductions for child support, alimony, unpaid taxes, student loans, and creditor debt repayments


What is an example of a mandatory deduction on a pay stub? FICA tax, or the Federal Insurance Contributions Act tax, is a mandatory deduction.

It’s comprised of two primary components:

  • Social Security tax (6.2%)
  • Medicare tax (1.45%)

Our research indicates that the Social Security and Medicare taxes are levied equally on both employees and employers (7.65% each for a total of 12.4%).

However, these FICA contributions are levied solely on freelancers and the self-employed.

These taxes are calculated as a percentage of your gross wages, with a maximum taxable limit that’s set annually.

a common deduction on a person’s pay stub is

Local Taxes

If you’re wondering ‘Which deduction from your paystub is paid back later?’, taxes imposed by local governments can be refunded by the IRS if overpayment if tax withholding by employers occurs.

These deductions vary depending on the employee’s place of residence as well as local tax regulations. They’re typically withheld by the employer and remitted to the appropriate local tax authority.

Examples of local taxes include:

  • income tax
  • unemployment tax
  • school district taxes

Wage Garnishments

Wage garnishments are involuntary deductions from an employee’s paycheck used to satisfy debts or legal obligations.

These may be things like:

  • child support payments
  • alimony
  • unpaid taxes
  • court-ordered judgments

In most cases, employers are legally obligated to withhold these amounts from the employee’s wages and remit them to the appropriate recipient.

At Check Stub Maker, we streamline the understanding of these mandatory payroll deductions through our comprehensive paystub creator.

We’ve found from using this product that it ensures accuracy and compliance, empowering both employers and employees to navigate deductions seamlessly.

Voluntary Payroll Deductions

Let’s take a look at some common examples of voluntary deductions on paystub.

Table: Common Types Of Voluntary Tax Deductions

Deduction Type Description
Health Insurance Premiums
  • Optional deductions chosen by employees to cover health insurance costs
  • Provides access to medical services for employees and their dependents
Retirement Plans
  • Contributions towards retirement savings, such as a 401(k) or IRA
  • Deducted pre-tax that reduces taxable income and builds long-term economic stability
Life Insurance Premiums
  • Optional deductions allowing employees to have life insurance premiums
  • Withheld from paychecks to secure financial protection for beneficiaries
Job-Related Expenses
  • Deductions for work-related costs
  • Aids employees in managing their work-related monetary obligations
  • Examples are union dues, professional development courses, uniform costs, or parking services

Health Insurance Premiums

Health insurance premiums are optional deductions that employees choose to have withheld from their paychecks to cover health insurance costs. This allows employees to access medical services and coverage for themselves and their dependents.

We at Check Stub Maker offer an easy-to-use platform for employees to make paystubs that include health insurance premium deductions, providing a detailed picture of their payroll records.

create check stubs

Retirement Plans

A retirement plan, such as a 401(k) or IRA on paystub contributions, is a voluntary workers comp deduction on paystub that employees opt for to save for retirement.

These deductions are typically made pre-tax, helping you reduce your taxable income and build retirement savings over time.

After putting it to the test, our paystub generator enables employees to clearly consistently view their retirement plan contributions, promoting economic planning and stability.

Life Insurance Premiums

Our investigation demonstrated that employees may choose to have life insurance premiums deducted from their paychecks. This can secure financial protection for their families in case of unexpected events.

These deductions are optional and offer employees peace of mind knowing their loved ones will be supported after they’re gone.

When you create check stubs with us, you can easily track your life insurance premium deductions and ensure your beneficiaries are safeguarded for the future.

Job-Related Expenses

Job-related expenses are voluntary deductions that allow employees to cover costs associated with their work responsibilities.

This may be things such as:

  • union dues
  • professional development courses
  • uniform costs
  • workplace parking services

a common deduction on a person's pay stub is

These payroll deductions offer employees flexibility and control over their finances by allowing them to choose deductions that align with their individual needs and preferences.

By having these costs deducted directly from their paychecks, employees can manage their work-related obligations efficiently.

At Check Stub Maker, our paystub maker includes a customizable template for adding job-related deductions to your digital pay stubs. This gives employees clarity over their money matters at all times.


As we’ve discovered in this article, the most common deductions on pay stubs are typically related to government taxes and employee wellbeing.

We’ve delved into the intricacies of these various tax deductions, from mandatory FICA taxes to voluntary job-related expenses.

Now equipped with this knowledge, it’s time to take charge of your financial journey with ease.

Visit us at Check Stub Maker now and experience seamless payroll management with our pay stub generator.

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