When you review your paycheck for a job, there is some information you should expect to see. While pay stubs can vary between employers, there is some information that should be consistent on any pay stub. This means you’ll see the information whether the pay stub is attached to a check or you receive it on paper or via email when your paycheck is deposited to your bank account. Information to look for will include the following.
Gross Pay and Net Pay
Your gross pay and your net pay will both be one your paycheck when it’s created by a paystub creator. The gross pay is the amount you make before taxes or other deductions. If you are paid monthly, for instance, this amount should be one months’ worth of your yearly salary. The net pay is the amount your check is written for. This is the amount you will receive, whether in check form or through direct deposit after all deductions have been taken out.
Any taxes that need to be withheld will be shown on your pay stub. The amount and type of taxes withheld depend on a few different factors like location and tax brackets. The three main types of taxes that can be withheld could include federal, state and local taxes. You should understand the types of taxes that will be withheld from your paycheck and make sure the correct amount is being withheld to maximize your paycheck while minimizing the potential to owe money on your tax return.
Wage garnishments will show any deductions that are made from your paycheck that don’t fall under retirement or benefits. Depending on your situation, this could include repayments for taxes that are past due or child support payments. The pay stub should include basic information on why the wages are being garnished as well as the amount removed from that paycheck.
Benefits offered through an employer will typically have the cost removed from your paycheck instead of you need to pay as soon as you receive your check. Benefits can include health insurance, dental insurance, vision insurance or other types of insurance like life or disability insurance. Like with wage garnishments, there should be basic information on the pay stub that tells you what the deduction on your check was for and how much was deducted.
If you choose a 401k or similar plan through your employer and have contributions taken directly from your paycheck, this information will be on your pay stub. The pay stub will include information such as the type of retirement plan and the amount you’re paying towards it each month. If your employer matches contributions, this information may also be included on your pay stub.
Your pay stub includes a lot of information, but most of it should be organized, so it’s easy for you to figure out what money you’re getting as well as what deductions are being taken out of your paycheck each month. All of this information is important to understand as it lets you know where your money is going and how the money is being used when it is deducted from the pay you receive each pay period. Check out your pay stub today to look for this and other information that might be important for you.