Four Key Things to Review When You Receive Your Paycheck
When you get a job, you will agree on the rate you will be paid for a given period of work. Once you get your first payment, you may be confused when the amount is less than what you expected. It is therefore wise you learn more about how you can resolve this confusion. Seek resources that will help you discover more on how the pay stub is structured. You will aim to know the procedure that is used to determine the amount of money you get to take home. Here are the four vital items to examine on your pay stub.
The gross pay is usually the first item on your paycheck, and you should start by understanding. You will discover that this is the amount you agreed with your employer you will be paid. It is periodic income prior to any deductions and taxation. The gross pay will include your hourly rate multiplied by the number of hours you have worked, allowances, tips, and bonuses. It smart you learn more on how your gross pay determines the taxes you are charged. The idea is to learn more about the taxation brackets and find which group you belong to depending on your gross pay.
Once, you get your paycheck, it is wise you examine the net pay. Therefore, it is your income after all deductions and taxes. Ensure that the net pay on your payslip is the same amount you received in your bank account. One of the reasons why you may get the wrong pay is a mistake in the preparation of pay-stub. To ensure that mistakes are corrected fast, make sure you examine your payslips.
To understand the paycheck, you should learn more about the mandatory deductions. Given that deductions reduce the money you take home, you may wish it is possible to avoid all of them. The challenge is that the law requires you to pay tax, medicare, and social security. Seek more information that will help you understand all mandatory deductions in your payslip. Ensure that your employer is remitting these deductions on the agreed time. The goal is to avoid any legal issues by complying with the set regulations.
Voluntary deductions are the final thing to check on your pay stub. Maybe you have purchased a medical or life insurance; thus, the premiums will be deducted from your salary. Hence, you are the one guiding the employer on how to handle these voluntary deductions.
To ensure that your paystub is accurate, you should slowly go through it.