Everyone working receives paychecks after regular intervals, that money is dumped into their bank account to inflate the fund. Obviously, all earning doesn’t go to saving and a significant part of your earning is spent to meet necessary bills and deal with emergency crisis. Meanwhile, you pay no attention to the check stub. By doing so, you actually fail to understand where your payouts went. It may make you feel that you received less than what you deserve. A close inspection of your pay stub will be highly beneficial and help you identify your employer’s mistake (if any). Therefore, you must have a clear understanding of your pay stub in order to know what you are looking for.
A pay stub or check stub has different areas. Let’s take a closer look at each of the areas to understand their significance.
Top of Check Stub
The check stub has information (such as name, address and other information) about employers and the check stub date is also mentioned. Just below those details, you will notice your working hours mentioned in hours, the rate at which your payment has been made and the total payment. This figure is inclusive of payable taxes and other deductions and so exceeds the amount your paycheck was meant for.
Net Payment & Deductions
On further examination of your paycheck, you will find details about deduction of state and federal taxes. The same area also mentions the deductions for Medicare and social security. You may notice variations in your federal tax figure as it is subject to number of exemptions claimed by an individual in times of filling the W4 form that a working individual receives from his/her employer. Net pay is calculated after deductions and this actually stands for what you will get after encashing the paycheck.
Meaning of YTD
There is an area of your pay stub where you will notice YTD along with some amounts. YTD stands for “Year to Date” and implies what amount you have been paid by your employer that year. There will be a clear mention of YTD gross earnings, YTD net earnings and YTD deductions. Such detailing will enable you to track your personal records.
If the organization you work at has any offer of retirement and insurance and you have signed up for these options, the deducted figure will find a mention on the paycheck. The paycheck also shows balances and PTO (Paid Time Off) and when you earn them, these hours will increase from one paycheck to the next if these are not used.
Small Stubs for Small Business
If you run a small business, it is important to create pay stubs for your employees. Use Online Check Stub Maker for this purpose. It is easy to understand and simple to use. If the employees have clear understanding of all information, they will not be confused. There is pay stub calculator to automatically generate the net amount after calculating the deductible figures. Such ease of use and instant calculation will bring you relief over payday. As an employer, you should try it to bring more professionalism into running of your business.