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What is a Paystub?
A Paystub is a document that sums up your total earnings during a specific pay period. A pay stub is broken down into three categories:
- How much you are being paid.
- Taxes you’re paying.
- Other deductions.
The amount you’re being paid for the current period arrives on your first pay stub, which is quite easy to understand.
Fundamentals on a Paystub
Apart from personal information like name, address, social security number and employee ID, there is much information on your pay stub. Below mentioned is a pure breakdown on paystub:
- Pay Period: This is the calendar that checks your paychecks. You may also see pay dates on a pay stub, which is the day you received funds. For instance, let’s assume you get paid every two weeks; then the pay period date will look like this: 3/1/23-3/15/23.
- Working Hours: From this, you can view the number of hours you have worked for a specific period, which is common for part-timers and hourly workers. For example, if you work 20 hours a week and your pay period is two weeks, the total number of hours will rise up to 40 hours.
- Gross Pay: This is the money you earn before deductions or withholdings are taken out.
- Year-To-Date: This will be the total money you will earn in a calendar year. It is typically known as “YTD” and can be found next to the deductions, net pay and gross pay.
- Deductions: These are known to be the taxes and insurance premium that is deducted from your total gross pay. Some deductions are listed, which include the FICA and Medicare taxes.
- Net Pay: This is the total amount earned, subtracting the amount taken from taxes and other deductions.
Which of the Following are not Deducted on a Typical Paystub?
As for the question, which of the following are not deducted on a typical paystub, the answer to this question is mentioned below:
1- Federal Income Tax: Federal Income Tax is the tax on annual earning for individuals, corporations and other legal entities. This tax is deducted from employee’s paycheck as this deduction is in support of the various government programs.
2- State Income Tax: State Income Tax is the tax that you pay to the state government on your annual income. State Income gets deducted only in states that appoint income tax on residents. As not every state has an income tax, so it’s not applicable to all states.
3- Social Security Tax: A Social Security tax is paid by the employee and the employers which includes self-employed individuals to fund it for the U.S. social security program which provides retirement, disability and survivor benefits.
4- Medicare Tax: The Medicare Tax is a tax which is charged to an individual in order to fund the medicare system. This tax is deducted from an employee’s paycheck to fund the medicare system which provides healthcare benefits.
5- Retirement Contribution: The deductions for retirement plans, like 401(k) or IRA contributions are included in a paystub. These contributions are deducted before taxes can provide tax advantages.
6- Health Insurance Premium: If your employer is offering health insurance coverage then, your portion of the health insurance premium will be deducted from your paycheck.
7- Other Premium: This includes other premiums like life insurance or disability insurance.
8- Union Dues: If an employee is in a union, then his union dues may be deducted from his paycheck.
State and Local Taxes:
State and Local Taxes may also get deducted from your paychecks. State taxes rates go high depending on state-to-state. If, in any case, you need to pay state taxes, they are calculated in the same manner as federal income taxes.
If you live in a town that charges income taxes, then your account will have a certain amount withdrawn from each paycheck stubs which is labeled after the name of your locality. You will pay the same amount each pay period for both the state and local taxes as long as the amount you earn doesn’t change.
Conclusion
From the mentioned points you will get the answer of your question to which of the following are not deducted on a typical paystub? Remember that items like bonuses, overtime pay, expenses pay may show on the paystub but are not deducted.
FAQ's
Are federal income tax withholdings deducted on a typical pay stub?
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No, federal income tax withholdings are typically listed as a deduction on a pay stub.
Is Social Security tax deducted from an employee's wages on a pay stub?
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No, Social Security tax is usually deducted and shown as a separate line item on a pay stub.
Are insurance premiums typically deducted from an employee's wages on a pay stub?
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Yes, deductions for insurance premiums, such as health or life insurance, are commonly listed on a pay stub.
Are retirement contributions deducted on a typical pay stub?
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Yes, if an employee participates in a retirement plan, such as a 401(k), the contributions may be deducted and reflected on the pay stub.
