Guide on How to Read a Pay Stub
A pay stub refers to the section that of a paycheck that outlines information about worker’s pay. You will find that many employees do not read their pays stubs since several of them receive their payments through direct deposits. Direct deposit should not be an excuse for you not understanding your paycheck. The advantage of reading your pay stub is that you will understand how much taxes you pay and also your employee contributions. Sometime, there can be errors on your pay stub that can lead to you getting less money in your account. The article, therefore, outlines ways on how to read your pay stub.
First and foremost, compare your gross and net pay when reading your pay stub. You will notice that there is a siginificant difference between the amount of money you earn and the one that is deposited on your account. This is because you need to pay federal, state and local taxes. Healthcare premioums and retirement contribution are deducted from the gross pay.
Knowing your taxes is the next thing to do when reading your pay stub. You will find that most employees do not comprehend the amount of taxes they pay. There are situations where the withheld federal taxes are more or less than normal. When you are in this kind of situation, you will have a big tax bill or refund. Reading your pay stub will, therefore, be an easy task if you comprehend all the taxes you pay.
Look into the accuracy of your pay stub is the next thing to do when reading it. There is a good chance that your pay stub will have some errors since they are generated by people. Sometimes, you can also have underreported the hours worked. All the above errors can lead to less fee in your back account. To avoid such circumstances, you need to keep written records of your hours worked for yourself. Using a fake pay stub template can also show you the deductions that are supposed to be made. If you follow these strategies, you will not get underpaid because there will be not errors on your pay stub. For this reason, make sure you check your pay stub daily because it will be harder to fix if you wait for long.
Lastly, make sure you report the errors on your pay stub. You must let HR manager know the errors on your pay stub once you notice it. Having your records by yourself is important because you will need to show the errors on your pay stub.
In conclusion, you will know how to read your pay stub if you go through the article.
Source: try this site