Deductions are subtracted from an employee's gross pay based on established rates as well as employee requests for voluntary deductions. For payroll purposes, deductions are divided into two types:
Involuntary deductions are those which are required by law, such as taxes, garnishments, child support, and state mandated retirement programs.
Voluntary deductions are the cost of benefits coverage that you elect to have, such as health insurance, dental insurance, supplemental retirement programs, and charitable contributions. Voluntary deductions are available depending upon your employment status.