Which of the following items is typically not deducted from a paystub?

Study for the GradReady Real-World Finance Exam. Utilize flashcards, multiple-choice questions, and detailed explanations to grasp essential financial concepts. Prepare for success!

The year-to-date (YTD) figure on a paystub represents the total amount of earnings or deductions from the beginning of the current calendar year up to the most recent pay period. It is a summary that provides a snapshot of accumulated figures but is not a deduction itself. Instead, it reflects the total amounts withheld and earned rather than indicating any specific deduction from the paycheck.

In contrast, federal taxes, state taxes, and Social Security contributions are all deducted from an employee's gross pay to arrive at the net pay. These deductions affect the immediate amount an employee takes home after taxes and other mandatory contributions. Therefore, since YTD is not an actual deduction but a cumulative total, it serves a different purpose on the paystub, distinguishing it from the other listed items.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy