Pretax Nonstatutory Deductions

Pretax nonstatutory deductions are deductions made before the tax calculation, and they reduce the total taxable income and tax withheld for an employee.

There's only one secondary classification delivered for the Pretax Nonstatutory Deductions primary classification: Termination Deductions.

When there are insufficient earnings to pay a pretax deduction and to pay all taxes, the pretax deduction must be reduced. When creating a Pretax Nonstatutory Deductions element, you specify whether the payroll run takes nothing or a partial amount in case it can't take the full deduction. You also choose whether or not to hold the arrears in a balance so that the payroll run can try to deduct this amount in a subsequent payroll period. The arrears are held at the Payroll Relationship level.