US paycheck deductions

Every type of deduction you might see on a US pay stub, with what it means for your taxable wages and FICA.

• Federal income tax withheld
  The IRS amount your employer withholds based on your W-4 and earnings.
• Social Security tax
  6.2% of wages up to the annual Social Security wage base.
• Medicare tax
  1.45% of all wages, with an additional 0.9% over $200,000.
• State income tax withheld
  Your state's share of payroll income tax. Varies by state.
• Local / city income tax withheld
  City, county, or municipal income tax. Common in OH, PA, IN, NY, MI, KY, MO.
• FICA (combined SS + Medicare)
  Social Security plus Medicare. Combined employee rate 7.65% on most wages.
• Traditional 401(k) contribution
  Pre-tax retirement contribution. Reduces federal taxable income (not FICA).
• Roth 401(k) contribution
  After-tax retirement contribution. Qualified withdrawals are tax-free.
• HSA contribution
  Pre-tax contribution to a Health Savings Account (HDHP required).
• FSA contribution (Health or Dependent Care)
  Pre-tax flexible spending account. Use-it-or-lose-it.
• Health insurance premium
  Most employer health, dental, vision premiums are pre-tax (Section 125).
• Wage garnishment
  Court-ordered deduction. Federal CCPA caps disposable earnings exposure.
• Child support
  Income withholding order. CCPA limits up to 50%/55%/60%/65% based on circumstances.
• Union dues
  Voluntary post-tax deduction in most states.