Understanding Your Paycheck Stub

Are you among those people who have trouble understanding their paycheck and never bother to do so? The most common reaction of many people when they get paid is to look at the total amount on your paycheck. In fact it would be the first and last things they look after getting paid.

Keeping a documented proof of your wages will help out to improve your overall personal finances. A standard paycheck stubs consists of useful information which is if understood properly can help you track how much money you earned, how much money you took home, and how much of your earnings were given to any withholdings. Basically it contains a lot of useful information that can help you plan for the future. 

So if you are among them, don’t worry! We've compiled a list for you of exactly how to read pay stubs:

The most basic as well as important point you'll notice while reading a paystubs is both your information as well as your employer's at the top of  your standard paystub. Just under this, it should state what the period is for the payment at hand.

After this, just below the information portion is the next important part in your paystubs is the part that displays you your hourly rate and hours worked. And, if you aren't an hourly wage worker than this section will show you your salary. It will give the details of what you made in overtime, and will also show you bonuses or commissions for the pay period. 

Now is the section which is usually difficult for many people to understand is the federal taxes. Federal taxes break down into two main categories: income tax and FICA. FICA taxes include Social Security and Medicare contributions. Your total earnings per pay period determine your income tax rate.

Many companies propose some level of health insurance for its employees. If you contribute in your company’s insurance program, they usually withhold your cost from your paycheck.

Then you'll observe the number you adore looking at, your net income. This is the number you get to put into your bank account after all of the other taxes and deductions and contributions having been considered.

With Pay-Stubs.com pay stub generator instantly create pay stub online. This easy checkstub maker handles calculations automatically with no software needed and make creating paystub experience hassle-free for you.