by Susan Paige
How often does your employer send out your paycheck, and how long does it take him/her to get them to you? How much should you expect to receive per hour or week? Can you trust your boss to give you accurate information?
This article looks at how to understand your pay stub checks correctly to ensure that you don’t receive less than you expected. The study reveals some important facts about the average amount paid each month and why you might be receiving fewer dollars than previously.
A recent study shows that over half (53%) of private sector employers now offer their employees access to electronic payment records, such as direct deposit or bank account statements. Many also provide additional benefits such as vacation allowances, retirement plans, and medical insurance.
Without wasting any more time, let’s continue reading the rest of the article.
What is a Pay Stub?
Your pay stubs are simply a record of what you earned during a particular period of time. They include information on the date of the check, the type of check, the number of hours worked, the hourly rate, and the total amount of money received for those hours.
Pay Stubs are usually sent by mail every two weeks but can vary depending on the company. Some companies may only send pay stubs once a year, while others will send them monthly.
The most common types of pay stubs are:
Weekly – This type of pay stub lists all the hours worked in one week, along with the hourly wage and the total amount earned.
Bi-weekly – This type of paystub lists all the hours worked between two different dates, including the hourly wage and the amount earned.
Monthly – This type of payroll report includes all the hours worked in a given month, along with the hourly rate and the total amount earned for that month.
Quarterly – This type of report covers all the hours worked in four consecutive months, including the hourly wage, the amount earned, and the total amount earned in that quarter.
Yearly – This type of annual report covers all the hours spent working throughout an entire calendar year, including the hourly wage rate, the amount earned, the total amount earned, and the tax withheld from the employee’s paycheck.
Why do I need to know my Pay Stubs?
Knowing your pay stubs helps you keep track of your income and expenses. It allows you to plan ahead for upcoming bills and other financial obligations. You can use this information to determine if you have enough money coming into your household to cover your current living expenses.
You can also compare your pay stubs against previous years’ reports to see if your earnings have increased or decreased. If they have decreased, you can ask your employer for an explanation.
If you’re not happy with your pay, you can always talk to your supervisor about it. Your boss should be able to explain why your pay has changed.
If you find out that your payment has been reduced, you can contact the Human Resources department to discuss the situation further.
Understanding your Pay Stubs
There are many things to consider when reviewing your pay stubs. Here are some tips to help you understand your pay stubs better:
1) Look at the Date of the Check
The first thing you want to look at is the date of the check. Make sure you read the date carefully so you don’t miss anything important.
2) Read the Amount Earned
Next, make sure you read the amount earned. Be careful because there could be mistakes here. For example, you might receive $1,000 instead of $10,000.
3) Compare the Amount Earned With Previous Years
The next step is to compare the amount earned with previous years. If you notice that your pay has decreased, you’ll want to ask your employer for an answer.
4) Review the Hours Worked
Another way to review your pay stubs is to look at how much time was spent working each day. Did you work more than 40 hours per week? If so, did you get paid overtime?
5) Review the Tax Information
Taxes are another important part of your pay stubs. The IRS requires employers to withhold taxes from their employee’s paychecks. These taxes are then deposited into the government’s general fund.
6) Review the Total Amount Earned
Finally, take a look at the total amount earned. Are you making more money now than last year? If so, congratulations! If not, you may want to ask your employer why your pay has decreased.
7) Review the Hourly Wage Rate
Finally, review the hourly wage rate. Is this higher than what you expected? If so, you may want to speak to your supervisor about the change.
8) Review the W-2 Form
Your final step in understanding your pay stubs is reviewing the W-2 form. The W-2 form shows the amount of federal income tax withheld from your paycheck.
9) Review the Summary Page
Reviewing your pay stubs summary page will give you a quick overview of your pay. In addition to showing you the amount of wages earned, the summary page also shows the number of withholding allowances taken out of your paycheck.
10) Review the Schedule C
Reviewing your schedule C will show you all of the deductions made by your business. This includes any amounts deducted for rent, utilities, insurance, etc.
How to Make Sense of Your Pay Stub?
The first thing to do is to check if your employer has provided you with a copy of your pay stubs. If they have not, then ask for one. You can request this from your supervisor or human resources department. They will usually provide you with a form that you need to complete and return to them.
If your employer provides you with copies of your pay stubs, then you should read through them carefully. This will help you to see what you are actually being paid and whether there are any deductions that may affect your total earnings.
If you find anything wrong, then contact your employer immediately. It could be that your employer has made an error in calculating your wages. In this case, he/she will correct the problem. However, if you feel that your employer has deliberately withheld money from you, then you should report this to the appropriate authorities.
You should also keep track of all payments that you make. For example, you should note down when you receive your salary, bonuses, overtime payments, tips, and other forms of income.
When you receive your pay stubs, you should compare them against your previous pay slips. This will enable you to see if your earnings have increased or decreased.
If you notice that your monthly wage has dropped, then you should speak to your manager or HR representative. Ask them if there is something wrong with your job or if there is a mistake on your pay slip.
You should also look into your company’s policy regarding deductions. Some companies deduct certain amounts from your paychecks, which include:
– Social Security taxes
– Medicare taxes
– Federal Insurance Contributions Act (FICA) taxes
– State Income Taxes
– Unemployment Insurance
– Workers’ Compensation
– Vacation Pay
– Sick Leave
– Holidays
– 401(k) plan contributions
– Other deductions
Your employer may also deduct money from your paycheck for things like:
– Tuition Reimbursement Program
– Health Insurance Premiums
– Life Insurance premiums
– Retirement Plan Contribution
– Loan Repayments
– Child Care Expenses
– Dependent Care Assistance
If you need to generate a pay stub quickly and easily, you can do it by going to the website I’ve linked. It’s fast and easy, and it has worked perfectly for me in the past.
Pay Stubs – How to Read Them
The most important thing to remember when reading your pay stub is that it is only a summary of how much money you earn during a particular period.
It does not show you exactly how much you were paid each hour, nor does it tell you how many hours you work per week.
This information is available elsewhere, such as on your pay slip.
The following table shows some examples of what a typical pay stub looks like:
Example 1:
Employee Name: John Smith
Date: 01/01/2022
Time: 8:00 AM
Total Earnings: $1000
Hours Worked: 40
Wage Rate: $10.50 per hour
Weekly Hours: 40
This example should show you how to read some of the
Closing Thoughts
Your pay stubs are just a quick way of seeing how much you earned over a specific period of time.
They are useful because they give you an idea of how much money you have been earning throughout the year. However, they cannot replace your actual pay slips. These documents contain more detailed information about your earnings.
If you have any questions about this article, don’t hesitate to leave a question in the comment section. We’d be happy to help you out and provide valuable information.
So, what do you think ?