Each paycheck should be accompanied by a document. Pay stub. This is a record. How much have you made? Because starting at a specific pay period and the amount of money that was taken out for deductions. There is a lot of information in it. Let’s take a closer look to see all the meanings. Although your pay stub might look different than the one below, it should still contain the majority of the same information.
To learn more about each part of a pay slip, click the buttons below.
Earnings vs. Net pay
You’ll see two figures on your pay stub: your earnings or gross pay and your net pay. Your earnings are the based on your pay rate, how much money do you make?. Once you have applied a variety of taxes and deductions, your final result is your net pay or the money you have available on your paycheck.
You might be surprised by the difference in your earnings and net pay after your initial payment. This could be due to unanticipated deductions. This is a critical point to remember when planning your budget or financial planning.
There are many deductions that can be applied to your earnings, as we have already mentioned. While some of these deductions may vary depending on where you live and what your employer is, there is one deduction that everyone should be aware of:
No matter where you are located in the country. Federal income tax your earnings will have reduced. Therefore the amount withheld depends on many factors including your earnings and also how many allowances you claimed on w-4. You may also have depending on where you live. State income taxes your paycheck will have deducted.
There are also income taxes. federal insurance contributions act taxes those taxes have withheld to fund social security and medicare. Read more about fica taxes this article the balance