What is post tax?

Question

on my pay check stub it says they took post tax out of my check..i don't understand

Answer 1

There are things your employer takes out of your pay (401(k), medical premiums, union dues, parking dues, etc.) Some of those thing are taken out pre tax and some are taken out post tax.

PRE tax means the money comes out BEFORE federal taxes are calculated.

POST tax means the money comes out AFTER federal taxes are calculated and removed from your pay.

For example, lets say you get paid $1000 net and put $100 pre tax into your 401(k) and pay $50 post tax to your union dues. Your employer would calculate your federal tax withholding on the $1000 minus $100 or $900.

The other time pre and post tax are important is when you are doing your tax return. For example, you can claim medical insurance premiums on your Schedule A, but only when paid for by post tax money. If they are paid for by pre tax money, then you already got a tax benefit and can't double dip by claiming it again on your Schedule A.

Answer 2

Post Tax means that your employer withheld taxes based on your total salary and then took our your payment. In this usage "Post" means "after"

Gross pay: $1000.00
taxes withheld 100.00

Balance 900.00
Post tax payment 50.00

Your paycheck $850.00

Answer 3

Lindsi ...could be a tax they forgot from earlier...OR

Postage from mailing stuff...OR

A new post to tie up your horse to? ...OR

A mistake ...call the boss. (I have never seen a post tax)

Good Luck