New Look for Your Paycheck!
Previously, your before-tax and after-tax deductions were bundled into one group. This made it difficult to know exactly how much you were contributing to your Medical, Dental, Life Insurance, etc. in each pay period. Under the new paycheck layout, your individual deductions towards each benefit will appear as a line item, making it transparent and much easier to understand your paycheck.
What is the difference between before-tax and after-tax deduction?
The amount of before-tax deduction is subtracted from your income before tax is figured which results in lowering your taxable gross income. After-tax deductions are subtracted from your gross income after taxes have already been calculated. These deductions also result in imputed income.
What is imputed income?
Imputed income is the term the IRS applies to the value of any benefit or service that should be considered income for the purposes of calculating your federal taxes. If your dependents do not qualify for pre-tax benefits, your deductions will be post-tax and your employer's cost will be taxable to you as imputed income.
How is imputed income calculated?
Imputed income is the difference in the employer's premium cost incurred when your coverage tier changes as a result of adding an after-tax domestic partner or an after-tax older child to your plan.
Please see sample paycheck below.
For more information, please contact the HR Service Center at (215) 503-HRSC or HRQuestions@Jefferson.edu.