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 - (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) - (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 - (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 - (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

dependent_care_benefit - (Pre Tax) Dependent care benefits refer to specific benefits that are provided by employers to their employees in the care of their dependents. Dependent care benefits are under a bigger umbrella of the employee benefits system administered by the Internal Revenue Service (IRS). A list of dependent care benefits can be found in the W-2 Form, box 10

employer_sponsored_health_coverage - (Pre Tax) The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. The amount reported does not affect tax liability, as the value of the employer contribution continues to be excludable from an employee’s income and is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.
Note - employer_sponsored_health_coverage needs both the employer and employee contributions. It's expected that the employee contributions will be set to 0 through the API