Which payroll deduction is considered voluntary?

Voluntary payroll deductions are deductions from an employee’s pay that are chosen by the employee, rather than being required by law or the employer. Examples of voluntary payroll deductions might include:

1. 401(k) or other retirement plan contributions: Employees may choose to have a portion of their pay withheld for contribution to a retirement plan.
2. Health savings account (HSA) contributions: Employees may choose to have a portion of their pay withheld for contribution to an HSA.
3. Life insurance premiums: Employees may choose to have a portion of their pay withheld to cover the cost of life insurance.
4. Charity donations: Employees may choose to have a portion of their pay withheld to donate to a specific charity.
5. Union dues: In industries where employees are unionized, employees may choose to have a portion of their pay withheld to cover union dues.

It’s important to note that not all payroll deductions are considered voluntary. Some deductions, such as federal and state income taxes and Social Security taxes, are required by law and are not optional.

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