Involuntary Deductions
Involuntary are deductions that are required by law, these deductions include federal withholdings, such as federal income tax, medicare tax and social security tax. State and local withholding are also considered involuntary deductions, as well as wage garnishments. Wage garnishments can be "no more than the smaller of 25 percent of an employee’s disposable wages or the total by which the disposable wages exceed 30 times the federal minimum hourly wage.(Ferguson, 2014)"
Voluntary deductions are deductions offered to and accepted by the employee. These deductions include, health, accident, disability and life insurance. Voluntary deductions are not required by law but there may be policies affecting the deductions. "For instance, you must
Voluntary deductions are deductions offered to and accepted by the employee. These deductions include, health, accident, disability and life insurance. Voluntary deductions are not required by law but there may be policies affecting the deductions. "For instance, you must