4 Things You Need to Know About Your Paystubs

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When it comes to getting paid, there’s a lot you need to know about each pay stub you get. Here’s a comprehensive guide to understanding how you’re paid.

It’s important to be knowledgable about the way in which you get paid. Most Americans in the modern era are living paycheck to paycheck, and so understanding the details of a pay stub can have high stakes. A mistake can mean missing a bill or falling behind on a certain payment.

If you’re looking at your work pay stub and are unsure of what you’re reading, it’s time to take the opportunity to understand it. While it may seem confusing at first, it really isn’t all that difficult to learn how to read a pay stub.

Read on, and we’ll walk you through the things you need to know about each pay stub you get. 

1. Your Gross Wages

You work either at a salary or an hourly wage, and that is broken down to a total number that you get to take home. Now, different things are taken out of this total, including taxes and various other fees.

But if you were curious what the total you make is before these deductions, it should be right there on the pay stub for you to clearly see. Often, the gross pay section on a pay stub is broken down into two categories: one for this pay period, and the other for the yearly total thus far. 

This helps keep track of your payment as you move toward your total salary rate.

2. Hours Worked

A pay stub should also keep track of how many hours an employee worked during a particular pay period. This should ensure, especially if you’re an hourly wage worker, that you are being paid for the actual hours you’ve worked.

This is important to note because most issues one might run into with their pay stub likely revolve around hours worked. A failure to report hours properly can lead to issues everywhere else on a pay stub.

Employers can use a service like the one provided at paystubcreator.net to create stubs that accurately reflect workers’ hours on the job.

3. Employee Tax Deductions

If you’ve looked at your pay stub even for a moment, you’ve likely noticed the actual amount you get to take home is less than your gross wages. This is because money is taken out for various deductions. 

These deductions should be listed on your pay stub as well. Government agencies like the IRS tax a person’s pay and take some of the money. You should see those deductions listed.

Deductions might also be taken out for employee benefits like health care. These deductions should be listed clearly and show what total was taken out for each reason.

4. Net Pay

The big number at the bottom of your pay stub is how much an employee takes home after the various deductions. This is the number that is likely important to most people, as it is what will actually go into their pocket at the end of the day.

While this is the number one’s eye will probably go to, it’s important to understand the other elements so you can see how this number was landed at.

Understanding A Pay Stub

If you don’t know how to read a pay stub, it can prevent you from staying on top of your payments at work. The above information should help.

Need more advice for the workplace? Check out our blog for more. 

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