Types of Deductions

Types of Deductions

The following is a list of Deductions (both pre-tax and post-tax) that Zeal supports:

401k - (Pre Tax) A 401(k) plan is a tax-qualified, defined-contribution pension account that provides for pretax retirement savings.

hsa - (Pre Tax) A health savings account (HSA) is a tax-advantaged medical savings account enrolled in a high-deductible health plan. Funds accumulate and can be used to pay for qualified medical expenses without tax liabilities.

garnishment - (Post Tax) A Wage Garnishment is a court-mandated withholding of an employee’s earnings from a paycheck for use toward debts. Common sources include: Child support, federal debt, state debt, student loans, and credit card debt. This serves as a post-tax deduction.

miscellaneous - (Post tax) Use this type for a generic post-tax deduction on the employee check.

section_125 - (Pre-tax) A benefit belonging to a Section 125 plan that allows employees to choose between different types of qualified benefits.

roth_401k (Coming Q3) - (Post Tax) The Roth 401(k) is a defined-contribution pension account that requires that the income tax be paid immediately, so the employee's real net income is reduced by the amount earmarked for savings.

403(b) (Coming Q3) - (Pre Tax) A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools, non-profit organizations, and government entities It's similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts.

simple_ira (Coming Q3) - (Pre Tax) A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees by usually smaller businesses or companies.

roth_ira (Coming Q3) - (Post-tax) A Individual Retirement Account to which you contribute after-tax dollars. Your contributions and earnings can grow tax-free, and you can withdraw them tax- and penalty-free after age 59½ and once the account has been open for five years