Private Patrol Operator Practice Test

What are common payroll deductions taken from an employee's earnings?

1. Health insurance and retirement funds

2. Federal and state withholding, Social Security, FICA

3. Uniform costs and training fees

4. Bonuses and overtime payments

The correct answer is: Federal and state withholding, Social Security, FICA

Payroll deductions are amounts withheld from an employee's earnings to pay for various taxes and benefits. The correct choice highlights the main types of mandatory deductions that employees typically experience. Federal and state withholding taxes are required deductions taken to cover income taxes that the employee owes to the government. These withholdings account for a portion of an employee's earnings and are based on the individual's income level and tax filing status. Additionally, Social Security and FICA (Federal Insurance Contributions Act) taxes are also mandatory deductions used to fund federal programs that provide benefits for retirees, disabled individuals, and survivors of deceased workers. These contributions help ensure that employees are supporting the social safety net for all workers, contributing to their future benefits. While health insurance and retirement funds are indeed common deductions, they are considered voluntary or fringe benefits rather than mandatory payroll deductions. Therefore, while they can significantly affect take-home pay, they do not belong in the same category as federal and state withholding taxes, Social Security, and FICA. Similarly, uniform costs and training fees are not standard payroll deductions; they may be considered expenses the employee absorbs or are reimbursed by the employer. Bonuses and overtime payments are classifications of earnings rather than deductions, since they represent additional compensation rather than amounts taken from an employee