What does the term "paycheck deduction" refer to?

The term "paycheck deduction" specifically refers to the amount withheld from an employee's paycheck for various purposes such as taxes, benefits, or contributions. This can include federal and state income taxes, Social Security and Medicare taxes, health insurance premiums, retirement plan contributions, and union dues. These deductions reduce the employee's take-home pay and ensure that certain financial obligations are met directly from their earnings before they receive their net pay.

Understanding paycheck deductions is essential as they impact the employee's net income and help manage their contributions to taxes and benefit programs. The other options focus on different aspects of employment income or expenses, such as gross income, bonuses, and monthly expenses, which do not pertain to the deductions taken directly from a paycheck.