Definition of Deductions: Post-tax | After-tax Deductions

Payroll Definitions

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Deductions: Post-Tax (After-Tax) Definition

Employers take post-tax deductions out of employee paychecks after taxes.

Deductions: Post-Tax (After-Tax) Extended Definition
Post-tax deductions, or after-tax deductions, don’t impact taxable wages and the amount of tax owed. Examples of post-tax deductions include:

  • Loan repayments
  • Employee purchases
  • Roth 401(k) deductions
  • Standard (not SIMPLE) IRA deductions
  • Garnishments
  • Charitable contributions

Employers are not legally required to offer voluntary deductions.

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Last Updated By

Maria Tanski-Phillips | Feb 23, 2023

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