Deduction

Any amount subtracted from gross pay on a stub, whether required by law or elected by the employee.

Often confused with

Tax Deduction: A pay stub deduction reduces the paycheck; a tax deduction reduces taxable income on a return.
Withholding: Withholding is money sent to a government; a deduction is any amount subtracted from pay, including benefit contributions.

Taught in

5.1 Taxes, Net Income, and Budgeting

See also

5.1.C.1 · 5.1.C.3