A Guide to Understanding Your Pay Stub
One of the things that make us excited in this life is receiving our paychecks. Most of the time, we deposit our paychecks without question and without checking our pay stubs. The reality is that there are times when human error can cause mistakes in the amount that is reflected in your paycheck. You may be losing money because of errors in your paycheck if you don’t check your pay stubs.
To protect yourself so that you can earn the exact amount that you deserve to get, then you need to understand your pay stub and study it every time to make sure that it is correct. Employees were surveyed and it was found that 50% of them had at one time or another found mistakes in their paychecks. To ensure that you are getting your hard-earned money to the last cent, then you need to understand the items that are on the pay stub.
Here are some tips to help you when examining your paycheck.
The first thing you should do is to scan each section. Your employee information, the pay period, YTD or year-to-date, gross pay, and net pay are the sections that you should scan. Ensure that the items in your pay stub are all correct.
You also need to understand everything in your pay stub. There are some things that are not in your pay stub. Some of them are listed below.
One of the things taken out from your salary are pre-tax deductions. Health insurance and retirement account money are some of these items. It will save you money if they are not taxed.
Another thing excluded is employer contributions which are some things that the company pays for and this includes part of your insurance and part of your retirement fund.
There are also other amounts like state taxes, federal taxes, FICA taxes, health insurance, health savings account deductions, and retirement account that are taken from your paycheck.
Check for the correctness of the numbers in your pay stub. Human error is possible like entering your numbers wrongly. Printers don’t make the errors; it is the one who entered the numbers. Mistakes are made before they are printed. It is either you made a mistake when you input your hours or somebody else made an erroneous entry. This is something you can control. You should check your paycheck for errors. Check the number of hours you have worked and the rate if they are right. The tax withholding amount should be correct so make sure to check this.
The possibility of human error is high. You should have an understanding of your pay stub and take time to check it every time you receive one. It only takes a few minutes to do this. If you check your pay stub all the time, then you are sure that you are not losing any money.