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How to Understand your Check Stubs

A check stub can be a payroll check or a carbon paper whose purpose is to keep records of the current payments. People are ignorant of this important item, and therefore they tend to take a long time before cross-checking it and therefore they have problems with their funds. Details of your earnings, taxes, withholdings and other issues of interest are some of the contents of the check stubs that you should not miss. Regularly cross-checking your pay stubs is important since it helps you to manage your finances and be aware that end month you will receive a specific amount of money. Therefore I will elaborate on some of the ways you can cross-examine your check stubs.

Financial information is usually provided on the top side of the check stub. This is very clear because it outlines all the details of your earnings including the names of the employer and even the specific date and time the payment was made. The check stubs also provide the gross payments showing how your earnings are before any deduction are, then it shows the net salary after taxes are deducted.

The next step of understanding your pay stubs is analyzing the amount of money to be deducted from the gross payment of your in the form of taxes and withholdings. You should be ready to part with some money to taxes, but the ones that you must lose are federal and state taxes. Withholdings, in this case, will include the likes of social security and Medicare. Taxes are paid directly to the government, and they ate similar everywhere, but for the state taxes, they change depending on the laws of the states. The social fund is set aside by the government to take care of you at an older age, and the medical care helps you when you experience health challenges.

When you understand your check stubs, there are other additional features that you should also go through effectively. For example you should check the “Year to Date” at the bottom of the page which shows the total payment that you have received in a year from the employer. The “Year to Date” also depicts the taxes and the withholdings that you have paid to the government. You can also check out for benefits like tax relief, insurance deductions, time off and retirement plans.

The check stubs assist you to plan your spending and therefore enabling you to save a lot of your finances. When these finances end, you are not surprised because you had done appropriate accounting. The pay stubs are your pieces of evidence that the employer surely paid you for the job that you did.