Glossary
After-tax deduction
Apr 5, 2024
What is an after-tax deduction?
An after-tax deduction is a type of benefit that employees may receive, but that isn’t included in their paycheck. In some cases, businesses are required by law to provide this type of benefit to their employees, but they aren’t required to include it as part of an employee’s regular income.
The most common reason for a post-tax deduction is a 401(k) plan. Other deductions include, but aren’t limited to:
- Health insurance premiums paid by you or your employer (if applicable)
- Dependent care assistance programs
- Commuter benefits plans and parking subsidies
- Charitable contributions
- Health Insurance Premiums