HR Glossary

Pre-Tax Deduction

By October 20, 2019 October 22nd, 2019 No Comments

What is a Pre-Tax Deduction?  Definition below:

Pre-tax deduction is money that is taken out of an employees pay before taxes. This is often done to lower the employees taxable income.

Common Deductions Include:

  • Healthcare insurance

  • Disability payments (short & long term)

  • Life insurance

  • Retirement funds

  • Vision benefits

  • Health savings accounts

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