How to Read Paystubs

Check your pay stub.

Reading your pay stub correctly allows you to keep your finances organized, your budget accurate, and to set goals for future spending and savings. Track your with holdings to ensure accuracy and catch any discrepancies right away. Without proper attention, your pay and with holdings could have recurring errors with each paycheck. Tracking each penny you earn by accurately reading your pay stub, allows you to see exactly where all earnings and with holdings are going each pay period.

Instructions

1. 

   Check your idenification box on your pay stub.

   Look at the top of your pay stub for the identification box. This contains your name, your employee identification number, your position or department you work for, and the location of your employment.

2. Figure your gross pay. This is the total income you earn in a pay period before factoring any taxes or deductions.

3. Figure your net pay. This is your income after taxes and other with holdings. This is also called your 'take home pay."

4. Locate federal and state tax with holdings These are any taxes you owe to the federal or state governments. These are taken out each pay period in increments, based upon the estimated amount that you would owe at tax time.

5. Calculate your insurance deductions. Medical, dental, vision, and life insurance may be deducted each month or each pay period. There is a year-to date-column on your pay stub, which shows you your contributions to your insurance for the year.

6. Locate Social Security with holdings. This is a set amount required by the government to be with held from each pay check. Your employer will also contribute to your Social Security with holdings.

7. Locate Medicare with holdings. Like Social Security with holdings, this is mandatory. A pre-determined percentage is with held from your income. This is divided equally over each pay period.

8. Calculate year-to-date earnings and with holdings. This is normally at the bottom section of your pay stub. The year-to-date deductions are a break down of total deductions you have paid to date for the calendar year.

Tips & Warnings

• Abbreviated terms:

• YTD--Year To Date

• FT--Federal Tax

• Med.--Medicare

• SS--Social Security

• Contact the Human Resource department immediately if you find an error on your pay stub.

References

• Clear point: What is included on a pay stub
• University of Utah: How to read your paycheck stub

Resources

• Central Washington University: How to read the new pay stub
• H&R Block: Understanding paychecks