 In this presentation, we will take a look at deductions from gross pay. When considering deductions from gross pay, we may first want to look at what is gross pay? Gross pay is going to be before we have the deduction. So gross pay is going to be what our payroll would be if we did not have deductions including things like taxes. So we're getting from gross pay in other words to the end result which would be the net pay and deductions then are going to include things like mandatory deductions which are federal and state income taxes, deductions by law, deductions we have to have. So remember that the business is in essence required to make these types of deductions. It's important to note that the federal income taxes we're talking about here that are coming out of gross pay are the responsibility of the employee. In other words, they're the employee's taxes. Now that the employer is responsible.