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
In 2023, the state banned payroll deduction for public sector unions, except for those that serve law enforcement, fire-rescue officials and corrections officers, which are unions that are most supportive of Republican lawmakers.
—
Scott Travis, Sun Sentinel, 13 Mar. 2026
Without payroll deduction, automatic enrollment, and employer sponsorship — the mechanisms proven to increase participation — retirement saving rates collapse.
—Teresa Ghilarducci, Forbes.com, 25 Feb. 2026
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
Additionally, a payroll deduction can reduce taxes paid in each pay period, which gives you more money throughout the year, said Sara Taylor, senior director of employee spending accounts at consulting firm WTW.
—Medora Lee, USA Today, 21 Aug. 2025
The increases are paid via the state disability insurance plan, which is funded by a 1.2% payroll deduction tax withheld from workers’ paychecks.
—Lia Russell, Sacramento Bee, 3 Jan. 2025
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Scott Travis, Sun Sentinel, 13 Mar. 2026
Without payroll deduction, automatic enrollment, and employer sponsorship — the mechanisms proven to increase participation — retirement saving rates collapse.
—Teresa Ghilarducci, Forbes.com, 25 Feb. 2026
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
Additionally, a payroll deduction can reduce taxes paid in each pay period, which gives you more money throughout the year, said Sara Taylor, senior director of employee spending accounts at consulting firm WTW.
—Medora Lee, USA Today, 21 Aug. 2025
The increases are paid via the state disability insurance plan, which is funded by a 1.2% payroll deduction tax withheld from workers’ paychecks.
—Lia Russell, Sacramento Bee, 3 Jan. 2025
Cite this Entry
“Payroll deduction.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20deduction. Accessed 3 Apr. 2026.
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