Ch 4: Payroll Withholding & Deductions

About This Chapter

This self-paced chapter offers a comprehensive overview of payroll withholding and deductions that can help you prepare for an upcoming test. Review short lessons and take mini quizzes to assess your comprehension and gauge your readiness for the day of your test.

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.

7 Lessons in Chapter 4: Payroll Withholding & Deductions
Test your knowledge with a 30-question chapter practice test
Wage Withholding: Factors & Forms

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.

Federal Income Tax Withholding Procedure

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.

Social Security & Medicare Tax 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.

Common Withholding Issues in Payroll Preparation

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.

Mandatory vs. Voluntary Benefits: Definition & Examples

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.

Voluntary Payroll Deductions: Examples & Calculations

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.

Involuntary Payroll Deductions: Definition, Process & Calculation

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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