What are pre-tax and post-tax deductions in Zoho Payroll?
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| Pre-Tax Deductions | Post-Tax Deductions |
Definition | Amounts deducted before calculating income tax | Amounts deducted after calculating income tax |
Impact on Income | Reduces net taxable income and lowers income tax | Does not affect net taxable income |
Examples | National Pension Scheme (NPS), Voluntary Provident Fund (VPF) | Purchases made in the company grocery store or food court |
Recurrence | Deductions occur regularly in each pay run | One-time deduction, doesn’t recur in subsequent pay runs |