What deductions are typically taken from an employee's paycheck?

The correct answer encompasses a comprehensive range of deductions typically taken from an employee's paycheck. This includes several mandatory and often optional withholdings that employers are required or allowed to deduct by law or through employee agreements.

Federal Withholding is a crucial deduction, as it represents the amount withheld from an employee's earnings for federal income tax. This advance payment ensures that employees do not face a large tax bill when they file their annual returns.

Social Security is another obligatory deduction. This payroll tax is part of the Federal Insurance Contributions Act (FICA) and funds the Social Security program, which provides benefits to retirees, disabled individuals, and survivors.

Medicare tax is also included, which funds the Medicare program, providing health insurance for individuals age 65 and older and for some younger people with disabilities.

State Disability Insurance is a deduction that may apply in certain states, including California. It provides partial wage replacement to employees who are unable to work due to a non-work-related illness or injury.

Finally, State Withholding is a deduction for state income tax, similar to the federal withholding, but specifically for state tax purposes.

By combining all these elements, the answer captures the essential withholdings that an employee can expect to see from their paycheck, reflecting the various