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welcome to Excel 2010 business math video number 54 and if you want to download this workbook Excel 2010 business math chapter 6 click on the link below the video hey weamp;#39;re starting on the sheet six point three and six point four deductions these are the sections in the textbook deductions those are subtractions from our gross pay to get net pay so for example the employer is required to calculate federal income tax the idea behind federal income tax is that you have to pay as you go so every paycheck you have to pay a little bit so by the end of the year you have approximately paid all your federal income taxes if you pay too much you get a refund if you pay too little you owe state income tax FICA Social Security and Medicare those are deductions again the employer is required to calculate them and submit them to the federal government Social Security is for when you retire Medicare is for medical assistance for 65 and older thereamp;#39;s all sorts of other deductions purch