BPA Payroll Accounting Practice Test 2025 – Your All-in-One Guide to Exam Success!

The selection that indicates taxes, benefits, retirement contributions, and garnishments can all be deducted from an employee's paycheck is accurate because a variety of deductions may legally be taken from an employee's gross pay.

To understand this better, consider the components involved in payroll deductions:

1. **Taxes**: These include federal, state, and possibly local taxes, which are mandatory deductions based on the employee's earnings. Employers are required to withhold these amounts and remit them to the respective tax authorities.

2. **Benefits**: Employers often offer health insurance, dental insurance, and other benefits that can be deducted from an employee's paycheck. These deductions are typically part of a benefits package provided to employees.

3. **Retirement Contributions**: Contributions to retirement plans, such as 401(k) or pension plans, are also deducted from gross pay. These deductions may come from employee contributions, as well as any matching contributions made by the employer.

4. **Garnishments**: If an employee has a legal obligation, such as child support or tax debt, garnishments may be required by a court or government agency. These amounts are legally withheld from the employee's earnings to satisfy obligations.

In summary, the option that includes taxes, benefits