About This Chapter
Payroll Withholding & Deductions - Chapter Summary
The entertaining lessons in this chapter make it simple to grasp the basics of payroll withholding and deductions. Use these lessons to study tax and wage withholding, payroll deductions, different types of benefits and more. Completing this chapter will enable you to:
- List factors that affect wage withholding
- Detail the procedure for federal income tax withholding
- Describe different tax rates for Social Security and Medicare tax withholding
- Identify and discuss common issues in payroll preparation withholding
- Differentiate between mandatory and voluntary benefits
- Share examples of voluntary payroll deductions
- Define and discuss the process of making involuntary payroll deductions
View one, several or all lessons in this chapter based on the payroll withholding and deductions topics you need to review. Feel free to navigate these lessons in any order and visit them as often as you'd like. Before, during or after studying the lessons, check your understanding of their contents by taking short quizzes. Our practice exam can test your overall comprehension of this chapter.
1. Wage Withholding: Factors & Forms
Most employees are aware that they don't get paid all of the money they earn because employers withhold amounts from paychecks to be applied to taxes. This lesson covers what income is subject to withholding and what determines how much is withheld.
2. Federal Income Tax Withholding Procedure
In this lesson we will look at how the IRS requires employers to calculate the amount of payroll withholding for federal income taxes along with a few examples of determining the proper withholding.
3. Social Security & Medicare Tax Withholding
We all know that taxes get withheld from our paychecks. In this lesson, we'll discuss two of those taxes - social security and Medicare - including why they are withheld and how much employers and employees pay.
4. Common Withholding Issues in Payroll Preparation
This lesson will define withholdings and discuss common withholding issues, including classification of employees versus independent contractors, constructive payment, deceased employees and grossing up wages.
5. Mandatory vs. Voluntary Benefits: Definition & Examples
A key component of any organization's compensation system is the benefits provided to employees. In this lesson, you'll learn about the difference between mandatory benefits and voluntary benefits. A short quiz follows the lesson.
6. Voluntary Payroll Deductions: Examples & Calculations
In this lesson, you will learn about various types of voluntary payroll deductions such 401(k) plans, health and dental insurance premiums, flexible spending accounts, and how they are deducted from your payroll cycle.
7. Involuntary Payroll Deductions: Definition, Process & Calculation
Involuntary payroll deductions are not fun for the employee or the payroll professional. The following lesson explores four types of involuntary payroll deductions. You'll also learn about the regulating agency requirements.
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Other chapters within the Certified Payroll Professional (CPP): Exam Prep & Study Guide course
- Payroll Processes & Laws
- Employee Classification
- Calculating Employee Paychecks
- Employer Benefit & Contribution Plans
- Taxable & Nontaxable Employee Benefits
- Preparing, Depositing & Reporting Taxes
- Payroll Accounting Overview
- Payroll Audits & Internal Controls
- Managing a Payroll Department
- Certified Payroll Professional (CPP) Flashcards