Know your paycheck or paystub


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It is very crucial to understand your pay check or paystub. When you get your pay check you see all of this money taken out, you could get confused and frustrated. Lets get started understanding what your pay check stub is actually telling us. There are two main sections of your pay check stub. Earning and deductions. Earning part is quiet straight forward. Its shows your rate and number of hours you get paid for so number
of hours multiplied by your rate, you will get Gross Pay.
This is the money that you make before tax deductions. Let us move on to the deduction side. Here you will found some of the common tax deductions which will be subtracted from your gross pay. These taxes include your Federal Tax and State Tax Government uses these taxes for Schools, Roads, Hospitals, Military, Police department and many more. Then you got Federal Insurance Contribution Act (FICA) these taxes include social security and medicare. These taxes are used to fund federal government
programs for Disability, Retirement. Then you see other deductions, Which is Health Insurance. This may not shown on your pay check, depending on your company policy. Once we subtract these deductions your Net Pay comes into the picture. This is very important, this is the actual money that you get in your hand to spend for yourself.
From Birds eye view
Net pay = Gross pay – Tax deductions
We have covered all the basic points about your Pay check or pay stub which will help you to understand
it better
Time Offer: Get first stub FREE on purchasing of 2 minimum stubs for additional stubs you just have to pay $3.49/ paystub / per user or company

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