One Time Payments & Deductions
A one-time payment is a single payment to an employee outside of their regular salary. For exempt employees, one-time payments may be given to recognize superior performance in the form of a bonus, and/or to compensate for a special project or interim assignment.
For non-exempt employees, one-time payments may only be given to recognize superior performance and may not be given to compensate for additional work performed. If you would like to compensate someone for working additional hours, the employee should record those additional hours on their timesheet.
Payroll deductions are amounts withheld from an employee’s payroll check, and these amounts are withheld by their employer. Among these deductions are insurance pension contributions, wage assignments, child support payments, taxes, and union and uniform dues. Deductions that are mandated are government taxes; however, all other deducted amounts are voluntary.
In simple words, Payroll deductions are amounts taken out of an employee’s paycheck each pay period. An employee’s gross pay is different than their net pay, or take-home pay, because of the deductions subtracted. There are both mandatory and voluntary payroll deductions. Examples of payroll deductions include federal, state, and local taxes, health insurance premiums, and job-related expenses.
Deductions are elements of the salary that are part of the CTC but are deducted from the in-hand salary that employees receive. Let’s take a deeper look at some of the most common salary deductions and what they mean.