What to Look for When Reading Pay Stub
You find that the PayStubs can be a little confusing because of the different information on them. I can admit there is no better feeling like being handed your check and the PayStubs near the end of each work week. You find that most of the people always don’t take time to read and understand paystubs no matter how often they receive. You should know that when you are not doing that you are doing your financial future a wrong. Besides, the paystub breaks down the different areas that you work hours to go towards supporting. Read more now on this homepage to learn the things you should check when reading paystubs.
When reading paystub, you should start with employee earnings. You find that this is the basic area since it breaks down your hourly rate and how many hours you worked for the given pay period. It also contains any overtime hours you worked. It is essential to note that these are the figures that will be used to calculate your gross pay. While when you are paid salary, your hours will be set default at 40 hours a week.
The next thing that you should check is employee taxes withheld. You should be aware that the first place your gross pay will be directed is your taxes. This section on your pay stub will include the amount taken from your check to be sent to the government. This will later be included in your W-2 for tax filing purposes. They are commonly referred to as pay-as-you-go taxes which will prevent you from having to pay a huge lump sum to the government come tax time.
The other sensitive area that you should concentrate on is employee deductions. It is essential to note that taxes are not the only thing that is taken from your pay stub each pay period. Besides, deductions are also made for your retirement, healthcare, and many other benefits. Remember that this money is set aside for you to go through these various programs. At some point you might feel bad when you see the money go but one thing that you need to understand is that this money will still benefit your health and future. In case you are working somewhere where your employer helps to contribute to your healthcare or retirement, you will see it reflected in a separate area.
To conclude on this, you now understand that reading a pay stub can be an essential skill if you hope to understand where your money is going each pay period.