Certified Payroll Professional Exam 2025 – Complete Practice Resource

Question: 1 / 400

When are deductions taken in the case of non-taxable benefits?

Before tax

Deductions for non-taxable benefits are typically taken before tax. By deducting these benefits before tax, employees can reduce their taxable income, potentially leading to lower tax liabilities. This can result in more take-home pay for the employee. Therefore, option A is the correct choice.

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After tax

At the employer's discretion

As per state regulations

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