After Tax Deduction

    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. 

    Successful Hybrid work

    Join our community

    Stay up-to-date with all things Akrivia HCM

    Mail Box