Guide on How to Read a Pay Stub
The part of a paycheck that lists all the details about an employee’s pay is what is called a pay stubs. 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. When there are errors on your pay stub, you may not get the full payment that you deserved. Here are the simple tips to read your pay stub.
First, make ensure you differentiate between your net pay and gross pay. 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.
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. This kind of situation can lead to a big refund or a huge tax bill. For this reason, make sure you understand the taxes you pay if want read your pay stub.
The third tip for reading your pay stub is checking its accuracy. Pay stubs are generated by people, so there are high chances that they will make mistakes. Sometimes, you can also have underreported the hours worked. You will not get the payment you deserved when these errors occur. 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. Your pay stub will not have any errors if you consider the methods above, so you will receive your total payment. It is advisable to read your pay stub daily because fixing it after a long time can be tedious.
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.
You will learn the simple ways to read your pay stub when you read the above article.
Advanced reading: Go Here