 In this presentation we will take a look at post-tax deductions. When considering post-tax deductions we're really talking about those deductions that are going to happen at the end of our calculation to arrive at the net check, the net paycheck, the net income, the net check from the gross profit, the gross check. So this is important because of the way we do the calculations. Note that some of the income calculations will be based on some type of deductions that may be reduced for the tax calculation. So in other words, when we calculate something like federal income tax, we can reduce the federal income tax wages by some items, usually like a retirement plan. It's going to be a major item that we need to take into consideration when we go to the calculation of federal income taxes. So when we get to the post-tax deductions we're talking about those deductions that aren't taken into consideration. They're not going to reduce the taxes. We've already done the tax calculations and taken any deductions that are involved there and now we're talking about those deductions that can still be taken out when arriving at the gross check but that won't be impacting the tax calculations within our worksheets. And this will all make more sense once we start to build when we start to actually do the calculations and build our worksheet and see how we can come up with these types of deductions and arrive from the gross check to the net check. So mandatory deductions are going to be things like union dues. So depending on what the union agreements are, then if it's in the contract that we've got to deduct the union dues then of course those are going to be mandatory deductions. They're not going to be deductions that are going to lower the taxable income. So they're not going to they're not going to if we pay union dues or not typically there's no effect on how much federal income tax, social security, Medicare, state tax we will pay but it will decrease the amount we will be paying. We will get paid in terms of a net check if we're the employee. So and it's acting the same way. Note that all we're doing as the employer is we're being required to take the money from the employee before we pay it to them but part of their gross wages and pay it to the responsible party, someone that they owe money to in essence which is the union. Then we have garnishments. Now garnishments could be things like a court order if there's some kind of liability within a court order that could be garnished. Why would that happen? The court order is trying to say well we want a more insure payment we want to insure payment so therefore they're going to require that the employer once again the employer having responsibility here pay directly to whoever they got to pay under the court order rather than giving the money to the employee who then pays whoever they have to pay and by doing that you're more assured that the money is going to go whoever the court has decided it should go to and then and then of course that that's mandatory because it's court ordered and it's still the same kind of idea. We're just taking it out of the paycheck the employer is just responsible for doing basically the bookkeeping that we can think of as a responsibility or would be a responsibility of the employee in other circumstances. So we're just taking the money out of their paycheck and paying it to the people that they owe mentally however were required to do this by law given these circumstances. Then we have voluntary deductions so these could be anything else and note that we could basically anything we could set up I mean if we have charitable deductions that we want to say hey we want to give so much of a percentage to these charities every paycheck I just want you to take it out of the paycheck I don't want to have to deal with it myself that would be a benefit it's not going to reduce the the net income it's not going to reduce taxes federal taxes or state taxes although it may be something that we can deduct on our federal and state taxes it's not something that we will deduct when we calculate the the taxes on the register. Now when you fill out your W-4 when an employee fills out their W-4 if they have a lot of charitable deductions they may adjust the withholdings for federal income tax based on the fact that they could have lower taxes based on charitable deductions but again in terms of our calculation for net check has no effect on the federal income tax calculation. So it could be other type could be an investment account we could be saying hey you know take some money out and put it into this type of investment every every month that's going to be a type of service that now the company is doing it's the same idea that the company is taking money from our check before giving it to us and it's our money but instead of giving it to us they're going to pay it to people that we owe the only difference here being that these are people that we have to pay and there's you know it's mandated and these are going to be like a favor the company is doing us a favor they're putting money into the charitable account that we asked for or the investment and any any type of expense we have if we want that to be done and if our company is willing to do that to make a automatic payment that would be nice like a gym payment or something like that any kind of monthly type payment that just automatically takes out of the paycheck could be paid out given the arrangement between the employer and the employee.