Payroll deduction refers to a process where an employer deducts a certain amount from an employee's paycheck for payment towards specific expenses or contributions. This can include things like insurance premiums, retirement plan contributions, charitable donations, and other types of voluntary deductions that the employee has authorized. The money is then sent to the appropriate organization or account on behalf of the employee. Payroll deduction is a convenient way for employees to make regular payments towards various expenses without having to write checks or manage multiple contributions manually.