Glossary term
Post-tax deduction
Subtracted after income tax is calculated.
Definition
A post-tax deduction is a payroll deduction that is subtracted from net pay after income tax has already been calculated and withheld. Common post-tax deductions include Roth 401(k) contributions, Roth IRA contributions made through payroll, charitable giving via payroll deduction, union dues, and court-ordered wage garnishments. Post-tax deductions do not reduce taxable income on the current-year W-2.
Example
A $150 Roth 401(k) contribution and $80 in union dues are typical post-tax deductions.
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Pay frequency — How often paychecks are issued.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions