 Hello, in this lecture we will define payroll deduction. According to fundamental accounting principles, while the 22nd edition, the definition of payroll deduction is amounts withheld from an employee's gross pay, also called withholdings. When we're thinking about the payroll deductions, we're typically thinking about those payroll taxes, federal income tax, FICA taxes, including social security and Medicare, but of course we could also take out the deductions from the pay of benefits such as a retirement plan or a insurance plan. So it would look something like this, we would have the gross pay, what the employee actually earned, that not being what will actually be received, because we will have the deductions from that gross pay, including the FICA taxes of Medicare and social security. Then we're also going to have the federal income tax that we're going to have to withhold. These are all federal taxes, two being the FICA tax, one being the federal income tax of that federal