Payroll and Tax Deductions From Your Payslip, Explained
Reading through your payslip can be difficult to understand. You probably wondering why your total take-home pay is a lot less than your gross pay. The reason is your paycheck have deductions for federal income tax, social security, medicare and other payment contributions for employee benefits. Here’s an infograph to explain all these deductions from your payslip. See also How Your Federal Tax Dollars are Spent.