A certain amount that has been deducted automatically from the post-tax income of employees is termed an after-tax deduction. This is applied after making all required pre-tax deductions from employees’ paychecks. Employees can opt-out of having their pay automatically deducted to pay for benefits, except when a court order or regulatory agency requires deductions.
An employer has the opportunity to offer their employees a wealth of after-tax deductions. These include wage garnishments, employer-sponsored pension plans, Roth 401(k) plans, union dues, 529 college savings plans, disability, charitable donations, life insurance policies, Schedule A deductions, and flexible spending accounts.
After-tax deductions are wage garnishments, withholdings, and other paycheck deductions that get paid after taxes, so they generally can’t be claimed. However, there is an exception.
and stay up-to-date with everything going on in the Akrivia HCM
By subscribing, you agree to our terms and conditions.