Understanding your paycheck stub is something that is vital especially if you want to be sure that you accurately get your pay and also if you want to make sure that you are getting the pay you deserve after working hard for it. A paycheck stub might be something that is quite foreign to you especially if you’ve just recently received your first ever pay. Knowing its anatomy is essential so that you get to understand why you sometimes get less and where do these deductions go.
A sample paycheck stub contains some common elements that are needed for you to determine how much you have earned from your work at a time specified by the company and indicated on the paycheck you receive. Commonly, the paycheck you receive indicates the hours you have worked, your hourly rate, the total hours you have worked for a specific period, and the total amount you have earned from working on the total number of hours given on a specified period.
The pay period indicated on the how to make a paystub depends on the payment schemes of the company you are working for. Commonly, pay periods are usually one to two weeks long with total hours ranging from forty to eighty hours. Multiplying the total hours indicated on the pay period from your hourly rate will get you the accurate total of your gross pay for the period without any deductions from taxes and plans offered by your employers.
The more complicated part of a paycheck stub is the deduction of taxes, loans, and plans offered by your employers. The grand total or the gross pay is deducted with a series of taxes that you need to pay including the loans and the plans that you also need to pay via deductions from the pay you get.
Common taxes that get deducted on your gross pay include federal taxes, state income taxes, social security taxes, and Medicare taxes. You pay state income and federal taxes for the development of roads and public infrastructure, for the military, police, and schools. You only pay half of the Medicare and social security taxes on the other hand since the other half is paid by your employer. Tax deductions should be reflected on a sample paycheck stub so that you know how much is being deducted per tax.
Additional deductions included are health coverage, insurance, and other plans that your employers offer you. The amount that will be deducted for your insurance and plans will mainly depend on the type of coverage you choose. The total left after deductions have been made will be the net pay or the amount you will get for the period.
All of these details should be included in a sample paycheck stub so that employers who get their pay can check for themselves whether they are getting the right pay for the period.