Question

Payroll deductions must be subtracted from gross pay to arrive at the employee's net pay. These...

Payroll deductions must be subtracted from gross pay to arrive at the employee's net pay. These deductions include all but the following items.

federal taxes

union membership dues

state taxes

municipal taxes

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Answer #1

The answer is municipal taxes.

Municipal taxes are not payroll deductions. These are property taxes which are not deductible from gross pay to arrive at the employee's net pay. A payroll deduction is one that is deducted from the gross pay of an employee and include taxes on the employee's earnings and other contributions made by him towards his life or medical insurance, or union or charity etc.

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