You must be on top of the world upon receiving the first job or if you are a newbie in a business, you are completely new to pay stubs. You are completely unaware of what on earth does paystub mean?
You may ignore the importance of a paystub in your initial days but it is more than just a slip of paper that is given along with your paycheck. Paycheck stub is equally important for both employees and so it is important to pay attention to the detail listed on the pay stub. 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 pay stub:
For reference, you can refer to this online pay stub generator.
Employer name and address:
The top left corner displays the employer’s details and address. It states your employment with a current company.
Employee name and address:
It states the name and address of the employee for whom the paystub is created.
SSN indicates your social security number. This pay stub states only the last four digits of your SSN.
It mentions the time span considered while creating the financial statements. Reporting period here is mentioned in form of a date range. Usually, the reporting period can be considered as weekly, bi-weekly, monthly, semi-monthly, monthly, and annually.
The pay Date is the date at which payment occurs. If payment is made through check then the pay date mentions the check date.
If you enter the employee id, the employee id will be mentioned on the paystub
The stub number will be mentioned at the top right corner above the employee id and below the text “Earning Statement”.
It mentions salary and salary rates. It mentions the current pay which is the actual income of the employee. If you want to calculate a bonus in income then add it to the gross earnings along with your salary.
The deduction section includes all the deductions to be deducted from employees. There is a number of 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. The amount of FICA tax is based on the amount paid. FICA taxes are included in payroll taxes.
This tax is imposed by the United States Internal Revenue Service (IRS). This tax I imposed for the annual earnings of individuals, corporations, and others. For more detail, you can visit the official website.
Mostly each and every state in the US collect income tax which is known as state tax in addition to the above-mentioned federal income tax. You should not mistakenly consider both federal and state taxes. This local tax is based on the income of the state. Each of the forty-three states can impose a state tax on individuals.
YTD stands for a year to date. It refers to the total earnings from the beginning of the first day of a 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 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 the current date. YTD Net Pay is the amount that we get after deducting YTD Deductions from YTD Gross
This mentions your current earning in the given reporting period. It’s similar to a total gross income.
It is the sum total of all the deductions and taxes.
Net pay is the net income earned by an individual in the current reporting period. Net Pay is the amount that we get by subtracting deductions from the total.
Thus, in this way you can easily know the details mentioned in your pay stub. Looking for online paycheck stub generator then you have reached the best place.
Related Article: Paycheck Stub Online – Why & How-to’s of Preserving them
What is an online pay stub?
An online paystub is an electronic document that contains detailed information about an employee's paycheck. It includes details about earnings, deductions, taxes, and net pay.
How do I access my online paystub?
To access your online pay stub, log in to your employer's online payroll portal. You can then view, download, and print your paystub.
What are the benefits of using online paystubs?
Online paystubs offer several benefits, including convenience, accessibility, and security. They are easy to access from anywhere with an internet connection, and they eliminate the need for paper paystubs, which can be lost or stolen.