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

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Deductions: Post-Tax (After-Tax) Definition

Term Definition
Deductions from gross payroll wages after taxes have been withheld.

Extended Definition
Post-tax deductions, also known as after-tax deductions, have no impact on taxable wages. Examples include loan repayments, employee purchases, Roth 401 (k) deductions, standard (not SIMPLE) IRA deductions, life insurance or charitable donations. Employers are not legally required to offer voluntary deductions.

Related Blog Article:
A Closer Look at After-Tax Deductions
Deduction Types in Patriot PAY

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