Pre-Tax Deductions Law and Legal Definition
Pre-tax deductions are deductions that can be used to discount the amount of taxable wages a person will owe taxes on. If these deductions are not made, individuals may owe taxes on their gross wages. Rather than income tax, pre-tax deductions may affect taxes for Social Security and Medicare. Pre-tax deductions are designed to create an incentive for people to be responsible with their money and plan ahead for certain eventualities. Pre-tax deductions are also used when the employee is investing in a retirement savings account.
Legal Definition list
- Pre-Service Training [Education]
- Pre-Sentence Investigation
- Pre-Rule Quiet Zone [Transportation]
- Pre-Rule Partial Quiet Zone [Transportation]
- Pre-Petition (Bankruptcy)
- Pre-Tax Deductions
- Pre-Transportation Function [Hazardous Materials Regulations]
- Pre-Trial Motions
- Pre-Trial Probation
- PREA
- Preaccreditation [Education]
