payroll deduction

noun

: money earned but not included in a paycheck because it is used to pay the employee's taxes, insurance costs, etc.

Examples of payroll deduction in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
When those errors occur, the department informs the employee about the error and offers options to pay it back through cash or check, a payroll deduction or using employees’ leave to offset the overpayment. William Melhado, Sacbee.com, 7 Jan. 2026 This could mean setting up automatic contributions to a brokerage account or investing in your 401(k) via payroll deduction. Ryan Ermey, CNBC, 25 Aug. 2025 When employees contribute to an HSA through payroll deduction, those contributions reduce taxable wages, which means the employer pays less in FICA taxes as well. Dave Etling, Forbes.com, 26 June 2026 In 2023, the Republican lawmakers raised that threshold to 60%, while also outlawing the public sector employees from using payroll deduction for membership dues. Scott Travis, Sun Sentinel, 24 May 2026 See All Example Sentences for payroll deduction

Browse Nearby Words

Cite this Entry

“Payroll deduction.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20deduction. Accessed 7 Jul. 2026.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!