Required Deduction

Definition: A payroll deduction mandated by law that neither the employer nor the employee may opt out of. Required (involuntary) deductions include federal in…

A payroll deduction mandated by law that neither the employer nor the employee may opt out of. Required (involuntary) deductions include federal income tax withholding, state and local income tax withholding, Social Security tax (OASDI), Medicare tax, and court-ordered garnishments.