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What Are Payroll Deductions?

Patriot Software

You know there are deductions to take out of your employees’ paychecks. But, are they pre-tax vs. post-tax deductions? What do you withhold from an employee’s take-home pay? What are payroll deductions? Read on to learn the different deductions you have to take out of each employee’s paycheck.

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Your Guide to Take-home Pay

Patriot Software

After you subtract all of the taxes and other deductions, money left over is considered take-home pay. Read on to learn more about what is take-home pay and how to calculate it. What is take home pay? Take-home pay consists of the […] READ MORE.

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Can Payroll Services Handle Direct Deposit?

Patriot Software

Most employers handle direct deposit through their payroll software. Payroll services calculate employees’ wages, taxes and deductions, and take-home pay. […] Read More Direct deposit is a convenient payment method for employees, who receive their paycheck quickly and securely on payday.

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How to Calculate Net Pay for Payroll

Patriot Software

Between taxes and benefit deductions, the employee’s take-home pay could be far from the $50,000 sticker price (cue the sad violin). To find their take-home pay, you need to know how to calculate net pay. Employee salary: $50,000 a year. But you know that’s not what they’re walking away with.

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Employees and Employers Save with Cafeteria Plans

InterWest Insurance Services

Because these benefits are free from federal and state income taxes, an employee’s taxable income is reduced, which increases the percentage of their take-home pay. A cafeteria plan can save employers an average of almost $115 per participant in FICA payroll taxes. The plans benefit employers, as well.

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Flexible Benefit Plans Give Employees More Options

InterWest Insurance Services

Employers fund these flexible benefit plans with funds that are deducted from their employees’ salaries on a pre-tax basis. Besides the fact that your employees use money that hasn’t been taxed to pay for these benefits, the payroll deductions for them also reduce their taxable income while raising take-home pay.

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Top 5 reasons to check your payslip

cipHR

Despite their importance for keeping track of our pay, as many as one in twelve people (8%) admit that they rarely (or never) look at them. CIPHR asked payroll expert Jon Lee for some pointers. A lot of payroll queries come from people who think they’ve paid too much tax in a particular month. So, why should we?

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