Payroll deductions are taken from paychecks for different purposes and can affect the employee’s final take-home amount. These pay deductions can reduce the take-home amount for an employee. Given the manner of taxes, such deductions could be before or after your tax payment. It is common to see a pre-tax deduction happening before a deduction of a tax, while other types may be deducted even after tax computation. Since these are adjustments in the pay received, it will make sense to have a clear understanding of what a payroll package entails, including the deductions. The pay slip shows the gross salary as well as the amounts subtracted, eventually leaving the net payable. Understanding these figures is essential for employees to know how their salaries are calculated and also for explaining the fact why the actual deposit or the pay received as the final paycheck may not be as high as the stated gross wages.