Do you know how to read your pay stub? Having an understanding of what your paycheck says is important but it is often overlooked.
Keep reading to learn why you should be checking your pay stub every payday.
1. Know the Basics
When you are looking at your paycheck there is a lot of information to take in all at once. But once you have learned the basics about what the different fields mean it will get easier to read.
Real check stubs should have your personal information in the top left-hand corner. This should include your name and home address. The dates of the pay period, filing status, and federal and state taxes.
If any of this information is not accurate, you should notify your employer to update it. This could affect you when filing for your yearly income taxes and might result in a delay of processing, or could even cost you money.
You should also familiarize yourself with the difference between gross and net pay. Gross pay is the total amount your employer pays you while net pay is the amount you take home after there are taxes and deductions.
2. Your Hours Worked
If you are an hourly worker you should keep track of how many hours you have worked during the pay period. Once you have received your pay stub you need to verify that the hours reflected on it are correct.
If the hours are less then what you worked then you are losing money that is owed to you. Make sure you address the situation with your manager or payroll. If you aren’t reading your pay stub when you get paid then you might be missing pay frequently.
If you have taken any paid time off then you should also keep track that it matches what is shown on your pay stub. Many stubs will also show you how many hours you have left in your bank and it can be easy to lose track of them when you get paid bi-weekly. You might assume you have more time left than you actually do.
You should also check to make sure that your benefits deductions are being processed correctly. If you don’t see your medical, dental, or 401(k) being removed on your stub then there is a chance your benefits haven’t been processed correctly.
If you are not monitoring your stubs then you might not realize that there is an issue until you have seen a doctor and receive a large bill in the mail. You are also missing the opportunity to grow your retirement savings if left unnoticed for too long.
Learn More Today About the Importance of Reading Your Pay Stub
These are a few of the reasons why you should be reading your pay stub on a regular basis. You should be familiar with the different fields of the stub so you know when you are being paid correctly and if all your deductions are being processed as they should be.
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