Oregon Construction Contractors (CCB) Practice Test

Question: 1 / 550

Which of the following is an allowed deduction from an employee's paycheck?

Transportation costs

Charitable contributions

Charitable contributions can be deducted from an employee's paycheck when an employer offers a payroll deduction program for employees to contribute to specific charities or nonprofit organizations. This approach not only facilitates the employee's desire to support charitable causes but also ensures that the contributions are made before tax, potentially reducing the employee's taxable income for the year.

The other options do not typically qualify for paycheck deductions. For example, transportation costs may be reimbursed but are not generally deducted directly from the paycheck. Entertainment expenses are also usually considered personal and not employer-approved deductions. Personal loans may involve repayments or deductibles but are not classified as allowable deductions from an employee’s paycheck, as they do not fall under the standard deductions permitted by payroll regulations. Therefore, charitable contributions stand out as the correct choice within the context of allowed paycheck deductions.

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Entertainment expenses

Personal loans

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