Which of the following is an example of a payroll deduction?

Health insurance is an example of a payroll deduction because it represents a portion of an employee's earnings that is withheld to cover the cost of their health benefits. When an employer offers health insurance as part of a benefits package, employees often have a premium that is deducted from each paycheck, reducing their take-home pay. This deduction allows employees to access health services while contributing to the cost of their insurance coverage.

In contrast, overtime hours refer to additional hours worked beyond the standard workweek and typically affect gross pay but are not deductions. Net pay is the amount an employee takes home after all deductions, including taxes and other withholdings, have been accounted for; it is the result of deductions rather than a deduction itself. The pay rate is simply the fixed amount an employee earns per hour or on a salary basis and does not pertain to deduction processes.