Paying your employees on time is a mandatory requirement for any business, no matter the size. However, paying the appropriate amount in payroll deductions could probably tie for first place in a race of importance.
It’s imperative that you—the business owner—to understand payroll deductions, what deductions are mandatory and which are voluntary, and where to send the deductions once they’ve been taken.
In general, there are two types of deductions: pre-tax and post-tax. There are also mandatory and voluntary deductions. All of these are listed below. Here is your quick and easy guide to determining your payroll deductions.