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What does pretax deduction mean?

Updated: 9/26/2023
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Q: What does pretax deduction mean?
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What is pretax?

An amount removed from pay before taxes are deducted. For example, some 401(k) plans are a pretax contribution - the deduction is made before the taxes are figured, thus lowering your tax liability.


What does 4 percent mean in sales tax?

Multiply the pretax price by 0.04


What is Pretax Group's population?

Pretax Group's population is 1,100.


When was Pretax Group created?

Pretax Group was created in 1944.


Are Social Security Administration taxable wages reduced by pretax deduction?

It depends on the deduction. Most common deductions such as medical premiums reduce SS taxable wages. But salary-deferal types of deductions do not. For example, employee contributions to a 401lk or Simple IRA do not reduce SS taxable wages.


What does AR stand for as a payroll deduction?

What does AR mean in a payroll deduction


Does pretax need to be hyphenated?

The word pretax can be used either with or without a hyphen.


What is post tax deduction?

Post tax deductions are deductions that are figured after taxes have already been taken out, such as a pay advance repayment. Pretax deductions are deducted from gross pay, then federal and state income taxes are determined on the net amount.


What effect do pretax salary reductions have on the federal income tax?

what effect do pretax salary reductions have on the federal income tax?


What does hendothermic mean?

Is the amout of energy, in a thermal deduction.


Does pretax use a hyphen?

No it's not hyphenated.


What does retro deduct mean?

A retro pay deduction is an odd concept. It means that the company forgot to take out the deduction before, so they are correcting the error.