As a small business owner or payroll professional, you need to be aware of payroll tax deductions, including both pre- and post-tax deductions. As the names suggest:
- Pre-tax deductions are those deductions subtracted from an employee’s pay before taxes are withheld (including health plan and life insurance contributions).
- Post-tax deductions refer to deductions taken from an employee’s pay after taxes have been withheld (including wage garnishments and union dues).
