Final answer:
In computing the ordinary income of a partnership for tax purposes, a deduction is allowed for various business expenses including salaries, operational costs, and employer-paid taxes. These can reduce the taxable income of the partnership.
Step-by-step explanation:
For tax purposes, in computing the ordinary income of a partnership, a deduction is allowed for a variety of expenses and costs that are considered to be ordinary and necessary for the business operations. These may include salaries and wages paid to employees, rent for business property, interest on business loans, and other operational expenses. When the partnership computes its income, these deductions can lead to a reduction in taxable income.
Wage deductions, sometimes known as withholding tax, PAYE, or PAYG, include advance payments of income tax and social contributions made by employees. On the other hand, employers also pay certain taxes based on their employee's wages, but these are not deductions from the employee's pay; rather, they are additional costs the employer must cover to fund social security and insurance programs.