Question

Money taken out of a salary for such things as taxes, medical insurance, and retirement funds is called

Answer 1

A. deductions as these are the items that are deducted from your salary. 

Answer 2

Money taken out of a salary for such things as taxes, medical insurance, and retirement funds is called "deductions".

A deduction is any thing or expenditure subtracted from gross pay to lessen the measure of pay subject to pay charge. It is additionally alluded to as a "passable derivation." For instance, on the off chance that you acquire $50,000 and guarantee a finding for $1,000, your assessable salary is decreased to $49,000.  

A deduction ought not be mistaken with a tax credit, which lessens the measure of expense owed as opposed to decreasing your taxable pay.