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Level 1
January 23, 2025
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what is pre tax deduction?

  • January 23, 2025
  • 1 reply
  • 4 views
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    Best answer by DoninGA

    Expert Reviewed

    Pretax deductions are taken from an employee's paycheck before any taxes are withheld. Because they are excluded from gross pay for taxation purposes, pretax deductions reduce taxable income and the amount of money owed to the government.

    1 reply

    DoninGA
    Level 15
    DoninGALevel 15Answer
    Level 15
    January 23, 2025

    Expert Reviewed

    Pretax deductions are taken from an employee's paycheck before any taxes are withheld. Because they are excluded from gross pay for taxation purposes, pretax deductions reduce taxable income and the amount of money owed to the government.