Guide on How to Read a Pay Stub
In a paycheck, there is a category that provides details about an employee’s pay called a pay stub. A lot of people do not look into their pay stub because most of them are paid through direct deposit. Getting paid through direct deposits should not stop you from understanding your paycheck. You will know the amount of taxes you pay and your employee contribution when you read your pay stub. If your pay stub is full of errors, you will get less money in your bank account. The article, therefore, outlines ways on how to read your pay stub.
The first tip to read your pay stub is comparing your gross pay and net pay. The first thing you will find out that your gross income and your net pay has a big difference. This is because you need to pay federal, state and local taxes. Healthcare premioums and retirement contribution are deducted from the gross pay.
The second tip for reading your pay stub is understanding your taxes. A lot of employees do not know how much taxes they are paying. Sometimes, the amount of federal tax withheld can be more or less than necessary. You will have a big refund or tax bills if you are in this situation, depending on the error that has occurred. For this reason, make sure you understand the taxes you pay if want read your pay stub.
Look into the accuracy of your pay stub is the next thing to do when reading it. People can make mistakes when generating a pay stub, so there is a good chance that yours will have some errors. Sometimes, you can also have underreported the hours worked. These situations will lead to less money in your bank account. You will avoid the errors on your pay stub when you first account for your hours worked alone. Using a fake pay stub template can also show you the deductions that are supposed to be made. These methods will prevent you from getting underpaid since you will elimimate all the errors in 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.
You should also report errors that you come across on your pay stub immediately. You must let HR manager know the errors on your pay stub once you notice it. In this situation, you will need to prove the errors that are why keeping your records is essential.
You will learn the simple ways to read your pay stub when you read the above article.