NannyPay2 Additions-Deductions Examples

NannyPay2 Examples of Additions and Deductions (Please click the links.)

• Non-Taxable Expense Reimbursement

  Some employers choose to reimburse their employees for gasoline or other travel related expenses. These are added to the employee's pay as non-taxable additions.

• Accident and Health Insurance Deduction - A Non-Taxable (or Pre-Tax) Deduction

  Some employers deduct accident and health insurance premiums from their employee's wages. Such deductions are generaly not subject to taxation and are referred to as non-taxable or pre-tax deductions because they reduce taxable wages

• Contribution Plans such as 401(k) Plans - A Non-Taxable (or Pre-Tax) Deduction

  401(k) contributions are deducted from your employee's wages before federal income taxes are withheld. Such deductions are not subject to federal or state taxes but are subject to FICA (Social Security and Medicare) tax. As for state income tax, most states exempt 401(k) contributions from taxation, but depending on where you live your contributions may be subject to local income taxes. You should check with your tax professional regarding the laws in your area.