Question

Alex pays 1 percent of her gross pay as her insurance premium for the month of January. The insurance premium is part of which deduction from her pay?

A.
disability tax
B.
Social Security tax
C.
voluntary deduction
D.
Medicare tax
E.
federal income tax

Answer 1

voluntary deduction

Step-by-step explanation:

Payroll deductions are either voluntary or involuntary. Involuntary deductions are the mandatory deduction imposed by the government. They include federal and state income tax, social security, and Medicare taxes.

Voluntary deductions comprise requests from employee to employer to withhold some amount for specific functions. Such deductions include loan repayments, insurance contributions, savings schemes, and many others.