IRS Publication 15
Authoritative Statutory Source
Post-Tax Deductions
Payroll deductions made after all statutory taxes have been calculated (Roth 401k, garnishments).
Detailed Definition & Statutory Context
Post-Tax Deductions is governed by IRS Publication 15 standards across corporate payroll administration, statutory tax withholding, and general ledger labor accounting. Rigorous compliance with Post-Tax Deductions prevents IRS Form 941 deposit penalties and FLSA wage-and-hour litigation.
Statutory Formula & Equation
Net Pay = Net Taxable Pay - Statutory Taxes - Post-Tax Deductions
General Ledger / Payroll Journal Entry Standard
Debit: Gross Payroll Expense / Employer Tax Expense
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Common Operational Pitfalls
- Excluding non-discretionary bonuses from FLSA overtime regular-rate calculations.
- Failing to cap Social Security tax withholding once employee earnings exceed the $168,600 wage base.
- Misclassifying non-exempt hourly employees as exempt salaried workers.