Learn What Information is Included on a Pay Stub

Learn What Information is Included on a Pay StubLearn What Information is Included on a Pay StubA pay stub, also known as a paycheck stub or pay slip, is the document that itemizes how much employees are paid. You will receive a pay stub for each pay period. It shows your total earnings for the pay period, deductions from the total, and your net pay after deductions. Yournet pay, also referred to as take-home pay, is how much you have leftover after taxes and other items havebeen deducted from your pay. When employees are paid with a paper check, the pay stub will be attached to the paycheck. If employees are paid by direct deposit to their bank account, the pay slip should be available online to print, if a paper copy isnt provided by the employer. If you are provided with online paycheck stubs, your employer will advise you on how to login to view and print them. Its a good idea to get into the habit of reviewing your pay stub and keeping either a physical or a digital copy, in cas e you ever need to verify your pay or deductions. This is especially important when you start a new job, so you can confirm thatall thedeductions in your first paycheckare correct. When youre applying for a loan, renting an apartment, or buying a house, you may be asked to provide copies of your paystubs from a certain period of time. Reqesting recent and current paystubs is one waythatemployers verify employment. Its also a good idea to save copies of your pay stubs in case your employer gets something wrong, and you need to refer to the document while ironing things out with Human Resources. What Is Included on a Pay Stub? Pay stubs include the details of each pay periods wages including the following, depending on your personal circumstances Gross pay This is your pay before deductions for federal, state, and local taxes, as well as Medicare, Social Security, and any insurance or retirement contributions. Gross pay is what employers list when making a salary offer, e.g. $50,0 00 a year, divided by pay period.Federal taxes withheld Federal tax withholding will depend on yourtax bracket. U.S. personal income taxes operate on a graduated scale, starting at 10 percent and increasing to the top rate of 37 percent (as of 2018). How much you pay will depend on how much you earn. State taxes withheld States set their own personal income tax rates. Some have bracketed tax rates similar to the IRS, while others use a flat rate- and some states have no state income tax at all. State taxes can be complicated. For example, if you live in one state, but work in another, both states cant tax the same income- but that doesnt mean that non-residents are off the hook. Seethis piecefor more information on state taxes and how they might affect you.Local taxes withheld Some metro areas, like New York City, set their own local taxes, which pay for local government services. Benefit insurance deduction(s)Health, dental, vision, life, disability- you might wind up contributing to any or all of theseemployee benefits. If so, your share will likely be included on your pay stub.FICA You might have seen this on your pay stub, but didnot know what it meant. FICA stands for Federal Insurance Contributions Act. In short, its your contribution to Medicare and Social Security.Retirement or pension plan contribution If your employer offers a retirement plan (e.g., a 401k, 403b, or pension), your contributions will show up onyour pay stub. Wage garnishments Wage garnishment is when your employer withholds a certain amount of your paycheck to pay off your debt (for example, a tax bill or child support payments).Back pay If your employer owes you back pay- for example because of an adjustment to your employment (hourly to salaried, or vice versa)- you might see the payout listed on your stub.Net payThis is the amount you receive after deductions- your actual paycheck, so to speak. If youre evaluating a job offer or starting a new job, youcan calculate your net payto g et an estimate of how much youll earn. The pay stub may also include year-to-date totals of gross and net earnings and deductions. If you have questions about any of the items on your pay slip, check with your manager or companys Human Resources department for clarification. They can advise you on your current deductions and on how to make changes to what is withheld from your gross pay. How to Calculate Your Net Pay There are websites whichyou can use to calculate the deductions that will be withheld from your pay to estimate the amount of your paycheck Paycheck Calculators How to Change Your Withholding Tax When you start a new job or want to change the amount of tax that is withheld from your paycheck, you will need to fill out a W-4 Form.Heres how to complete the form. How to Get a Copy of Your Pay Stub Copies of pay slips are often required for credit applications or to otherwise verify employment. If you havent saved copies of your pay stubs, check to see if you c an view and print them from the employee section of your company website or from the payroll service site that your employer uses. If you cant locate copies, ask the Payroll or Human Resources department of your employer if they can provide you with copies of your pay slips or a login to access them online.