Deduction types
Whether a deduction is pre-tax or post-tax changes both employee net pay and employer tax liability, so this setting matters more than it looks.
- Pre-tax — medical, dental, vision, HSA, and traditional 401(k)
- Post-tax — Roth 401(k), garnishments, and voluntary benefits
- Employer contributions — tracked for reporting, not deducted from pay
Annual limits
Payflo tracks contribution limits across the year and stops deductions once an employee reaches the cap. Limits update each January without any action from you.
For a mid-year hire, enter prior-employer contributions so the limit is enforced against the full year rather than just time with you.
Open enrollment
Elections made during open enrollment take effect on the plan year start date, not immediately. Payflo holds the change and applies it to the first run of the new plan year.
Garnishments
Garnishments are court-ordered and take priority over voluntary deductions. Payflo applies federal and state disposable-income limits so an order cannot take more than the law allows.