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hello in this lecture we will define payroll deduction ing to fundamental accounting principles while the 22nd edition d a definition of a payroll deduction is amounts withheld from an employees gross pay also called withholdings when were thinking about the payroll deductions were typically thinking about those payroll taxes federal income tax FICA taxes including Social Security and Medicare but of course we could also take out the deductions from the pay of benefits such as a retirement plan or a insurance plan so it looks something like this we would have the gross pay what the employee actually earned that not being what will actually be received because we will have the deductions from that grils pay including the FICA taxes of Medicare and Social Security then were also can have that the federal income tax that were gonna have to withhold these are all federal taxes to being the FICA tax 1 beating the federal income tax of that federal income tax on the employee wages not o