Rock the 2025 FPC Exam – Master Payroll Fundamentals with Confidence!

Question: 1 / 400

What is typically included in a payroll deduction?

Employee bonuses

Health insurance premiums

Health insurance premiums are typically included in payroll deductions because they are amounts that are deducted from an employee's gross pay before the net pay is calculated. These deductions represent the employee's portion of the costs for their health insurance coverage, and they are commonly deducted on a pre-tax basis, which can offer tax advantages to employees.

In the context of payroll, other items such as bonuses, stock options, and training expenses do not fall under the category of payroll deductions. Bonuses are additional compensation, stock options are equity compensations provided under specific plans, and training expenses may be covered by the employer but are not typically deducted from employees' salaries. Thus, health insurance premiums stand out as a typical payroll deduction that directly reduces the employees' take-home pay to cover their contributions to health insurance plans.

Get further explanation with Examzify DeepDiveBeta

Stock options

Training expenses

Next Question

Report this question

Download Fundamental Payroll Certification (FPC) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy