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Before-Tax Deduction


Before-Tax Deduction is the amount deducted from an employee’s gross salary by the employer before taxes are withheld. It helps employees as the taxable income is reduced. Before-tax deductions are beneficial for employees;

  • It helps employees in getting coverages such as medical and life insurance before the gross income is taxed. 
  • It reduces an employee’s taxable income and they can save money.


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