Pay Deductions and Setoffs

The law requires that The Sample Company make certain deductions from every employee's compensation. Among these are applicable federal, state, and local income taxes. The Sample Company also must deduct Social Security taxes on each employee's earnings up to a specified limit that is called the Social Security "wage base." The Sample Company matches the amount of Social Security taxes paid by each employee.

The Sample Company offers programs and benefits beyond those required by law. Eligible employees may voluntarily authorize deductions from their pay checks to cover the costs of participation in these programs.

Pay setoffs are pay deductions taken by The Sample Company, usually to help pay off a debt or obligation to The Sample Company or others.

If you have questions concerning why deductions were made from your pay check or how they were calculated, the Payroll Director can assist in having your questions answered.