A deductions worksheet is a document used to calculate the amount of money that an employee can deduct from their paycheck before taxes are taken out. Common deductions include health insurance premiums, retirement contributions, and flexible spending accounts.
Having a clear understanding of what deductions are and how they work on your paycheck is important. Using a worksheet will help you plan your budget and reach your financial goals. Historically, deductions worksheets were completed by using pen and paper. The calculations involved can be time consuming and prone to human error. Nowadays, almost all payroll departments use a digital solution that will populate the deductions worksheet based on the information that an employee enters in an online portal.
