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Payroll deduction agreements are agreements where employers deduct payments from taxpayer's wages, and mail them to the Internal Revenue Service. Direct debit installment agreements allow the IRS to debit taxpayers' bank accounts.
What is a type of voluntary payroll deduction?
Some common voluntary payroll deduction plan examples include: 401(k) plan, IRA, or other retirement savings plan contributions. Medical, dental, or vision health insurance plans. Flexible spending account or pre-tax health savings account contributions.
What is a form 2159?
Form 2159 (Rev. 5-2020) INSTRUCTIONS TO EMPLOYER. This payroll deduction agreement is subject to your approval. If you agree to participate, please complete the spaces provided under the employer section on the front of this form.
What are the 4 mandatory payroll deductions?
The standard payroll deductions are those that are required by law. They include federal income tax, Social Security, Medicare, state income tax, and court-ordered garnishments.
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