Payroll deductions are amounts withheld from an employee's gross pay for various purposes, including taxes (like income tax), superannuation contributions, health insurance premiums, or other benefits.
For example, if an employee earns $5,000 per month but has $500 deducted for superannuation and $1,000 for taxes each month, their take-home pay will reflect these deductions accordingly.
Understanding payroll deductions is essential for both employers managing payroll processes and employees tracking their net income.
