Paycheck Stub
Why Are Pay Stubs So Important?Employees may need to use paycheck stubs for things like loans and assistance applications. Paycheck stubs can help employees keep track of hours and budget expenses. They also help the employer by making sure employee information is correct. Some employers add a line on the pay stub stating it is the employees' responsibility to inform them if there are any changes that should be made such as address and withholding information. That way it is on every single paycheck stub and it cannot be said the employee was not informed of their responsibility.
Some common abbreviations used on paycheck stubs:
A sample paycheck stub shows examples of what would be on an employee's pay stub. Some deductions are taken before taxes such as insurance and 401(k). These would be deducted from the gross wages before deducting taxes. After tax deductions would be things like donations made through a company fundraiser or garnishments where the employee is still obligated to pay taxes on these deductions from their gross pay and take a deduction for some on their own personal income tax filings.
It is important to keep track of regular, overtime, sick, and vacation pay as it is taxed differently on company year-end returns. It is also necessary to record current and year-to-date (YTD) information. As this example is the employee's first paycheck of the year, they are the same.
Do not print the employee's full Social Security Number or bank account number on the paycheck stub. Employers must pay a percentage of the employee's wage for FICA and Medicare. Some employers add a section listing these employer paid taxes. This sample paycheck stub will be helpful in deciding what should be on the employee's pay stub, but each state may have other deductions that need to be tracked. Check with your local state taxing authority to find out more.
Why Are Pay Stubs So Important?Employees may need to use paycheck stubs for things like loans and assistance applications. Paycheck stubs can help employees keep track of hours and budget expenses. They also help the employer by making sure employee information is correct. Some employers add a line on the pay stub stating it is the employees' responsibility to inform them if there are any changes that should be made such as address and withholding information. That way it is on every single paycheck stub and it cannot be said the employee was not informed of their responsibility.
Some common abbreviations used on paycheck stubs:
- Gross: Earnings before deductions
- Net: Earnings after deductions
- Current: Pay period earnings
- YTD: Year-To-Date
- REG: regular hours worked
- OT: overtime hours worked
- HOL: holiday hours worked
- VAC: vacation time paid
- SICK or FL: sick or family leave time paid for
- FICA: Employee's portion of Social Security paid
- FICA-MED: Medicare deductions
- SWT or Fed: Federal withholding Income Tax deductions
- SWT or State: State Tax withheld
- LT or Local Tax: County and/or City Tax deductions
- WC or Work Comp: workman's comp contribution, usually paid by employer
- INS or MED: insurance or medical savings account deductions
- Life: life insurance deductions
- 401K or Ret: tax deferred retirement contribution
- Garnish: garnishment being taken from employee's check due to money owed
- Gross Pay: the amount of money you make before deductions
A sample paycheck stub shows examples of what would be on an employee's pay stub. Some deductions are taken before taxes such as insurance and 401(k). These would be deducted from the gross wages before deducting taxes. After tax deductions would be things like donations made through a company fundraiser or garnishments where the employee is still obligated to pay taxes on these deductions from their gross pay and take a deduction for some on their own personal income tax filings.
It is important to keep track of regular, overtime, sick, and vacation pay as it is taxed differently on company year-end returns. It is also necessary to record current and year-to-date (YTD) information. As this example is the employee's first paycheck of the year, they are the same.
Do not print the employee's full Social Security Number or bank account number on the paycheck stub. Employers must pay a percentage of the employee's wage for FICA and Medicare. Some employers add a section listing these employer paid taxes. This sample paycheck stub will be helpful in deciding what should be on the employee's pay stub, but each state may have other deductions that need to be tracked. Check with your local state taxing authority to find out more.
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| paycheck_with_401k_comp..docx |
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