It’s finally payday. You open the envelope to your paycheck, scroll through the numbers calculated by the software your company uses to create pay stubs and stumble upon your deductions…and then you get depressed.

Those deductions can be depressing, can’t they? Seeing how much money that you worked for that you’re not getting. It’s rough.

Deductions can also be frustrating and confusing. You may find yourself asking why you’re not receiving this money.

That’s why we put together this list of the top five things you need to know about paycheck deductions.

What Are The Types Of Deductions?

Depending on what kind of paystub you get, you may see a complete list of all the things taken out of your paycheck. It probably looks something like this:

Tax Withholdings

  • Social Security Tax
  • Medicare
  • Federal Tax
  • State Tax (This includes the state you live in and where you work if they are different)
  • Local Tax


  • Retirement (such as a 401(k))
  • Medical
  • Dental
  • Vision
  • Life Insurance
  • Disability Insurance
  • Any other benefits your employer provides

What Do My Insurance Paycheck Deductions Mean?

Any health insurance deductions are completely optional for you, the employee. If your employer offers insurance benefits, you are under no obligation to accept them. If you do though, they will be taken out of your paycheck.

What About the Other Deductions?

Your 401(k) contribution may or may not be mandatory. Some companies allow you to borrow money off of your 401(k), but you are then of course required to pay back what you borrowed. Otherwise, the money taken out of your paycheck will be accessible to you upon retirement.


As a citizen of the United States, you must pay federal income tax in addition to Social Security and Medicare. Everyone in the US pays them. You are also required to pay the taxes for your state and the state of your place of work if they are different. Your city likely has local taxes as well.

You can elect to not have these payments deducted from your paycheck. You will then need to pay them directly during tax season.

Why You Should Track Your Deductions

You are responsible for knowing how much is being deducted from your paycheck. Any errors or mistakes that go unnoticed are on you. This is why it is crucial to stay on top of this information.

Tracking your deductions is also just a good practice that will help you in creating your budget. The more you know about how much you are getting paid (or not getting paid), the better.

Contact Us!

Hopefully, this list helped you to be a little less confused about your paycheck deductions. Now that you know where that money is going and why it’s going there, you can breathe a little easier when you see that number on your pay stub.

Money can be confusing, but there are several interesting facets to it. If you want to read more about finance-related topics, check out our business page!

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How Apps Can Help Your Business Thrive

There are many things you can use to help your business thrive, but apps are certainly up there. They represent how powerful technology has become, and how much it matters to our businesses. So, check out how apps can help your company thrive and grow as much as possible.

Connecting with more people

As a business owner, you should always be looking for ways to connect with as many people as possible. And the way to do this is to ensure that you use apps to your advantage. For instance, you might consider creating a business app.

This will allow you to interface and connect with a whole new set of customers. You will be able to appeal to them through their smartphones wherever they may be. And this is an excellent way of raising brand awareness, and connecting with more people.

Do work on the move

When you run a modern business, you’re going to find you’re a busy person. You will be moving around a lot and traveling quite a bit. And this is where you need to make sure you have plenty of apps.

You see, there are certain apps these days that allow you to work remotely. No matter where you are, you can still be sure you’re running your business.

And this is vital for ensuring you are always connected and constantly evolving. Working on the move is a vital part of contemporary business, and you need to make sure you do it as much as possible.


One of the best things that apps can do to help your business thrive is through payment methods. The best businesses are the ones who offer the most amount of payment methods.

Customers hate having to wait around to get what they want. And the fact is that you could easily lose sales as a result. So, you need to use any sort of small business app that can help with payments.

That way you can process multiple transactions at once, and increase the sales you make. Instead of simply enjoying a lot of leads and a few sales you will be able to convert every lead into a sale on the spot.


It’s vital to look at every possible avenue you can to market your business. That means you need to think about using apps to help you promote and advertise your brand.

There are so many things you can do in this respect, and it’s really a case of deciding which to use. The best thing to do would be to get social media apps on your laptop or smartphone. Things like Twitter and Facebook are vital for marketing the brand.

And you can use the apps for instant connectivity and interaction. These allow you to update and promote your business at any time of day or night, wherever you are.

The good thing about owning and running a business these days is that there is so much out there to help you. Indeed, technology has developed to such a degree that we can use it to help our businesses so much.

If you harbour ambitions of developing a successful and thriving brand, you will need to make use of technology. And smartphone apps are one of the best formed of technology you can use these days.

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