Understanding Paystub

You must be on top of the world on receiving first job or if you are a newbie in a business, you are completely new to paystubs. You are completely unaware about what on earth does paystub mean?

You may ignore the importance of paystub in your initial days but it is more than just a slip of paper which is given along with your pay check. Paycheck stub are equally important for both employees and so it important to pay attention to the detail listed on the paystub. It also gives clarification about your earnings. So in case if you feel you should be paid more or less, it gives you complete explanations about all this.

Following things are displayed on your paystub:

For reference you can refer this paystub.

Employer name and address:
Top left corner displays the employer details and address. It states your employment with current company.

Employee name and address:
It states the name and address of the employee for whom the paystub is created.

SSN:
SSN indicates your social security number. This pay stub states only last four digits of your SSN.

Reporting Period:
It mentions the time span considered while creating the financial statements. Reporting period here is mentioned in form of date range. Usually reporting period can be considered as weekly, bi weekly, monthly, semi-monthly, monthly and annually.

Pay Date:
Pay Date is the date at which payment occurs. If payment is made through check then pay date mentions the check date.

Employee id:
If you enter employee id, employee id will be mentioned on the paystub

Stub number:
The stub number will be mentioned at top right corner above employee id and below the text “Earning Statement”.

Gross earnings:
It mentions salary and salary rates. It mentions the current pay that is actual income of the employee. If you want to calculate bonus in income then add it in the gross earnings along with your salary.

Deductions:
The deduction section includes all the deductions to be deducted from employees. There are number taxes considered:

FICA Medicare and FICA Social Security:
The term “FICA” is short for the Federal Insurance Contributions Act. The Act was introduced in the 1930s to pay for Social Security; Medicare was added later. All employees and employers need to pay FICA taxes. FICA taxes consist of two elements: Social security and Medicare. Amount of FICA tax is based on the amount paid. FICA taxes are included in payroll taxes.

Federal tax:
This tax is imposed by United States Internal Revenue Service (IRS). This tax I imposed for annual earnings of individuals, corporations and others. For more detail you can visit the official website.

State Tax:
Mostly each and every state in US collects the income tax which is known as state tax in addition to above mentioned federal income tax. You should not mistakenly consider both federal and state tax. This local tax is based on the income of the state. Each of forty three states can impose state tax on individuals.

YTD Gross:
YTD stands for year to date. It refers to the total earnings from the beginning of first day of current financial calendar to the current date. YTD gross refers to the total income the individual earned from January 1 to the current date.

YTD Deductions:
YTD deductions refer to the total amount the individual spent on various taxes from January 1 to the current date.

YTD Net Pay:
YTD Net pay is the net income earned by an individual from January 1 to current date. YTD Net Pay is the amount that we get after deducting YTD Deductions from YTD Gross

Total:
This mentions your current earning in the given reporting period. It’s similar to total of gross income.

Deductions:
It is the sum total of all the deductions and taxes.

Net Pay:
Net pay is the net income earned by an individual in current reporting period. Net Pay is the amount that we get by subtracting deductions from total.

Thus, in this way you can easily know the details mentioned on your pay stub. Looking for online paycheck stub generator then you have reached best place.