Does she get a W2? Or why are you asking? If she is an employee and gets a W2 she will pay SS, Medicare & federal income tax and any state tax on her income. They will take it out of her pay and it will be on the W2. Paying into a pension plan doesn't change that. The pension deduction is probably pre-tax which means it is not federal income tax now so it is excluded from the Gross Wages. But it is not excluded from the Wages for Social Security and Medicare taxes.
