Question

Matt notices health insurance and an amount on his paycheck stub. This amount was subtracted from his pay. It is an example of a _____.

-dividend
-interest
-tax
-deduction

Answer 1

It's an example of a deduction
(A deduction is when something is subtracted or removed)

Answer 2

Answer:  The correct answer is :  deduction

Explanation:  This is an amount that is deducted from employee paychecks and is used to cover the medical and surgical expenses that the insured may have. Health insurance can reimburse the insured for the expenses incurred for injury or sickness or he can also pay it directly to the care provider.