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Pre-tax Deductions & Post-tax Deductions: An Ultimate Guide

November 15, 2022

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).

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