MANAGEMENT

Detailed explanation-1: -Pre-tax deductions: Medical and dental benefits, 401(k) retirement plans (for federal and most state income taxes) and group-term life insurance. Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable donations.

Detailed explanation-2: -The biggest statutory payroll tax deduction is for the federal income taxes themselves. These are calculated according to each year’s payroll tax deductions chart.

Detailed explanation-3: -net pay. Net pay is also known as take-home pay and is the result of subtracting deductions from gross pay, which is the amount the employer remits as payment based on salary or wage levels and, if relevant, hours worked.