Answer: Deduction
Money taken out of a salary for such things as taxes, medical insurance, and retirement funds is called deduction.
Explanation:
Deduction is known to be money subtracted from an employee’s monthly income at the end of the month. Thus, this deduction is an allowable deduction.
Taxes are levies imposed by the government on individuals. Taxes vary with individual’s income. They are used for the provision of basic amenities such as good roads, sewage system, pipe borne water, education, electrcity and so on.
Retirement funds are accounts which allow individuals to deposit money and receive the money when they retire as pension.