Take advantage of all legal tax deductions
How the Payroll Dollar Is Spent:
  • Wages: 61.0 Cents 
  • Medical benefits: 11.0 Cents 
  • Time not worked (vacation and other time off): 10.9 Cents 
  • Legally required payments (payroll taxes, workers camp, unemployment, etc.): 8.2 Cents 
  • Retirement and savings: 8.0 Cents 
  • Other benefits and costs: 1.0 Cents 

The total is not exactly $1.00 because of rounding. Source: U.S. Chamber of Commerce. 

  • Miscellaneous Deductions (Cell phones, computers, and other tools used in your work, as well as work clothes and uniforms if required and not suitable for everyday use)