How to Read Your Paycheck

Everyone's total on their paycheck is different; however, a few things are the same for all of us. I'll breakdown my paycheck and hopefully this will shed light on your own!

Difficulty: Easy

Instructions

Things You'll Need:

• A Paycheck / Stub

1. Earnings: This is how much you made during this paycheck period. It is a GROSS calculation.

2. Medicare: This *obviosuly* is the percentage of your check that gets contributed to Medicare. My contribution is roughly 1.44%.

3. OASDI: This is your Social Security contribution. My contribution is roughly 6.19%.

4. Federal Income Tax: This is *obviously* the amount you contribute per check towards your Federal Incvome Taxes. My contribution is roughly 12.84%. Yours will be different if you are in a different tax bracket. I'm a single male :(

5. "Your State" SITW: This is *obviously* the amount you contribute towards your state's bottom line. My contribution is roughly 3.00%. Your contribution will be different depending on your state's tax rate and/or your filing status.

6. Deductions: Whether it is for Aflac, your medical insurance, your dental insurance, your 401K, or whatever, it is the amount deducted from your paycheck (pre-tax) towards an agreed upon arragement with your employer. Mileage may vary.