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_____________ is a type of voluntary payroll deduction.A.Federal withholdingB.FICAC.State withholdingD.Health insurance

Question

_____________ is a type of voluntary payroll deduction.

A. Federal withholding
B. FICA
C. State withholding
D. Health insurance

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Solution

The correct answer is D. Health insurance.

Explanation

Voluntary payroll deductions are amounts that employees choose to have withheld from their paychecks for specific purposes, rather than being mandated by law. Among the options provided, federal withholding (A), FICA (B), and state withholding (C) are all mandatory deductions required by law. These deductions are used to pay for federal and state taxes as well as Social Security and Medicare taxes.

In contrast, health insurance (D) is a voluntary deduction that employees can opt into. Many employers offer health insurance plans that employees can choose to enroll in, which enables them to have premiums deducted directly from their paycheck. This process allows employees to manage their benefits and make choices that suit their individual needs, making health insurance the only option listed that qualifies as a voluntary payroll deduction.

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