Certified Payroll Professional Practice Exam

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Prepare for the Certified Payroll Professional Exam with comprehensive flashcards and multiple choice questions. Each question is accompanied by detailed hints and explanations to aid your understanding. Get ready to ace your Certified Payroll Professional Exam!

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

  1. Before tax

  2. After tax

  3. At the employer's discretion

  4. As per state regulations

The correct answer is: 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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