Subscribe Feed (RSS)Sample Paycheck Stub 101
When you receive your first sample paycheck stub, you may feel that you have not been able to take away as much money as you had initially expected. This is because certain “deductions” are done in your paycheck. These may include Social security tax, Medicare tax, State tax or even some local tax. It may also have the cost of health insurance and few of the plans which have been sponsored by employer.
You can check each of the sample paycheck stubs to determine if the deductions done in it are proper. Sometimes even payroll departments can also make errors too. You should keep the pay stubs safe so that you have them handy to show them as a proof of your earnings.
Some of the common items you may see on your sample paycheck stub are:
• Rate—The rate which you are paid hourly
• Hours—Total number of hours you are being paid for.
• This Period—how much amount is being paid for this duration?
• Year to Date—Amount you earned this year.
• Gross Pay—Amount earned before deductions.
• Net Pay—Amount you earned after deductions. This is the amount you’d get as pay.
You may see you have many of the following deductions don in your pay sub check from the gross pay:
• Federal and State Income Tax—it amounts to the largest deduction. This money helps the Government pay for roads, schools, police departments…etc.
• Social Security and Medicare Tax—this deduction actually pays for one half of your Social Security (other half is payed by employer).
• Health Coverage—the agreed amount you need to pay in plan.
• Life or Disability Insurance—the amount you normally pay for your insurance. It is upto you as to how much coverage you need to have.
• Retirement Plan—you may choose as to how much you need to take out or add to the plan.
