What are examples of non-statutory deductions?

What are non-statutory deduction?

It is deductions from an employee’s salary that are not mandate by law, typically agree upon between the employer and employee.

What are some common examples of non-statutory deduction?

Common examples include contributions to retirement savings plans, health insurance premiums, life insurance premiums, and voluntary contributions to a company-sponsored retirement plan.

Are voluntary retirement contributions consider non-statutory deduction?

Yes, voluntary contributions to retirement plans, such as 401(k) or similar plans, are consider non-statutory deductions.

Can employees choose how much to contribute to non-statutory deduction?

Yes, employees usually have the flexibility to choose the amount they want to contribute to non-statutory deduction, subject to any plan limits.

Are health insurance premiums deduct from salaries consider non-statutory?

Yes, if the health insurance premiums are not mandate by law and are instead offer as a voluntary benefit, they are considered non-statutory deductions.

Do non-statutory deductions affect taxable income?

Yes, non-statutory deduction may reduce an employee’s taxable income if they are made to accounts that allow for pre-tax contributions, like certain retirement accounts.

What is the difference between statutory and statutory deductions?

Statutory deductions are require by law (e.g., income tax, social security), while non-statutory deduction are voluntary and based on agreements between employers and employees.

Are union dues considered non-statutory deduction?

Yes, union dues are typically consider unless mandate by a specific labor law.

Can employers change the terms of non-statutory deduction?

Yes, employers can change the terms of, but they must communicate any changes to employees in advance.