The post-tax meaning in payroll refers to deductions that are taken from an employee’s paycheck after federal, state, local, and FICA taxes have already been calculated and deducted. These deductions are from money that is already taxed and are therefore not part of the employee’s taxable income. They may include things such as contributions to a Roth 401(k), union dues, wage garnishments, payments to charities, and more life or disability insurance premiums. Post-Tax Deductions are calculated after the mandatory taxes have been deducted in the payroll calculation process. This means that they are not like pre-tax deductions, where they would be deducted from taxable income before taxes.
