What are amounts subtracted from gross pay called?

Amounts subtracted from gross pay are referred to as deductions from earnings. This terminology encompasses all types of reductions in an employee's total earnings, including taxes, benefits, retirement contributions, and any other withholdings that result in the final take-home pay, or net pay. Understanding this concept is important for managing finances and understanding paychecks.

The term "deductions from earnings" specifically indicates that these reductions stem from the overall earnings before taxes and other withholdings are applied, making it a comprehensive term that captures the essence of various possible deductions. By recognizing the broader category of "deductions," individuals can better understand how various components affect their overall compensation and financial planning.

In contrast, other options may specify particular types of deductions or contributions but do not represent the category as a whole as effectively. For example, salary deductions could suggest a specific type, while pension contributions and mandatory contributions refer to specific types of deductions rather than encompassing all possible subtractions from gross pay.