Waive a pretax deduction from your paycheck
Pretax deductions from your paycheck reduce your taxable income, which saves you money by reducing the amount of tax you pay. Because of the money saved, this is generally helpful for most people.
However, you can elect to waive a pretax deduction and pay after-tax. You might want to consider waiving a pretax deduction for one of two reasons:
- Social Security: Pretax deductions reduce the salary used to calculate your Social Security benefit at retirement. The impact on your Social Security, however, is typically minor. Most of the time, the money you save through pretax deductions outweighs any benefit gained by waiving the deduction.
- Unemployment compensation: Pretax deductions reduce the salary used to calculate unemployment compensation.
Health insurance premium
Your health insurance premium is automatically deducted pretax from each paycheck.
Contact Employee Workday Help to waive pretax deductions and pay after-tax.
If you’re newly eligible for health insurance, you have 31 days after becoming eligible to submit the form. After that time, you can submit the form only during open enrollment or when a qualifying life event occurs.