15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Understanding Payroll Deductions

Rather than instantly skipping to the bottom line on your paycheck, take a careful read through your payroll deductions. If you own your own business, individuals who specialize in accounting for payroll will be able to assist any of your employees who wish to either increase or decrease some of their payroll deductions.

Mandatory Payroll Deductions

There are some deductions that employers and employees have no choice but to accept in order to make sure they are adhering to government regulations. State taxes, social security, Medicare and federal income taxes are four examples of mandatory payroll deductions. In some areas, local taxes have to be withheld for the city or county. Additional types of local taxes include community college taxes, school district taxes, unemployment insurance and state disability taxes.

Voluntary Payroll Deductions

An accountant who specializes in accounting for payroll will be able to explain to you that some employers might require their employees to deduct certain voluntary deductions. While this might sound counterintuitive, there are cases where these voluntary deductions can either benefit the employer or the employee.

If you have dental or healthcare coverage, then a portion of your check might have to go towards your insurance. You can also have money taken out of your check for charitable donations, employer-sponsored 401(k) plans and employer-sponsored life insurance plans. Even if your employer already pays for life insurance, you can contribute even more if you wish.

Anyone who has their own business or is thinking about opening their own business should make sure they consult an accountant who specializes in accounting for payroll before they start hiring employees. The reason for this is that America’s tax laws can sometimes be difficult to understand. Not only that, but there’s also the possibility that there’s a new tax law that you might not be aware of.

While you may not like the idea of having so much money being deducted from your checks, it can be quite beneficial over the years, and that’s especially true when tax season rolls around. Something else to think about is that you can sometimes change how much is taken out of your paycheck.