What’s on a Pay Stub?
Personal and Check information includes your personal information, filing status (single or married), as well as the withholding number, according to your IRS form W-4.
The earnings section displays your earnings for the pay period, including overtime. This section also includes pre-tax deductions to account for any employee benefits you might receive, including retirement contributions and health insurance.
The deductions show any additional deductions you might make from your paycheck after taxes, such as group life insurance or disability insurance.
Your employer must withhold money from your paycheck to pay you. This includes Social Security, Unemployment Insurance and Worker’s Comp.
What is the point of understanding wage deductions?
Every pay stub contains year-to-date information for each withholding category. This allows you to track how much you have paid for taxes, Social Security, and Medicare over the year. A similar listing is often provided by employers for contributions to retirement savings and health plans. These fields will be marked with the acronym “YTD”, which stands for year-to-date, on pay stubs.
You are responsible for reporting any errors in your deductions. It is not a good idea for an error to occur again and again in different pay periods. Contact your payroll provider if you have any questions regarding the information on your pay stub.
What are the Gross Earnings on a Paycheck?
Pay stubs also show gross and net income. This allows you to see exactly how much you’re earning. This allows you plan accurately and confidently your monthly and annual budgets.
Make sure you verify that your pay stub information matches your W-2 form. This forms details your wages as well as taxes paid for the previous year.
What are Pay Stub Deduction Codes?
Here are some common deduction codes you might see on your pay stub. Common pay stub codes include the self-explanatory code 401K, which is for retirement savings contributions. The 401K ER refers to the employer’s contribution if an employee receives a match from the company. This is not an exhaustive list.
Numerous companies include codes on their paychecks that describe how they do business and the benefits they offer employees. Some businesses might call their health insurance HS, while others may call it Hi. Depending on your situation, you may see codes for unions, savings funds or pensions as well as companies and organizations.