After-Tax Deduction

HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

After-Tax Deduction

What is an after-tax deduction?

After-Tax Deductions, or Post-Tax Deductions, are payments automatically deducted from an employees’ income after taxes have been withheld (Federal, State and Local income, Social security and medicare taxes). Some examples of After-Tax Deductions are: Roth IRA contributions and 401(k)s, disability insurance, or garnishments.

Related Terms: Post-Tax Deduction

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