Most of us are excited to receive our paychecks at the end of a certain period of time. Most of the time, we deposit our paychecks without question and without checking our pay stubs. If it hadn’t crossed your mind that the entries in the paycheck could get mistaken, then you will definitely receive it without question. Failure to check the correctness of your pay stub can lead to losses in your salary.
Understanding and checking your pay stub every time your receive one can help you determine whether you are receiving the right amount for your salary. It has been reported that half of the employees surveyed found mistakes on their paychecks. Understanding your pay stub can help ensure that you are getting the right amount of money on your paycheck.
You need to understand some things about your pay stub so that you can check if it is correct.
It is important to scan each section of your pay stub once you receive it. These sections include your employee information, the pay period, YTD or year-to-day, gross pay, and net pay. If you keep on checking that all these items are accurate, you will soon get used to checking your paycheck every time you receive one.
Not only the sections, but understand all the items in your pay stub. Your pay stub will not include everything. Some of them are listed below.
The pre-tax deductions are things that are taken out of your salary before you are taxed. These items could include your health insurance and retirement account money. You save money when they are deducted before taxes.
Employer contributions are what your company pays for like part of your insurance or part of your retirement fund.
There are also other amounts like state taxes, federal taxes, FICA taxes, health insurance, health savings account deductions, and retirement account that are taken from your paycheck.
Next, you need to check that all the numbers are correct. Human error is possible like entering your numbers wrongly. Printers don’t make the errors; it is the one who entered the numbers. Don’t blame your printer; it is just printing the errors already committed beforehand. There are only two possibilities; either you entered your numbers erroneously or somebody else made the erroneous entry. It is not impossible to control this. Always check your pay stub for errors. Make sure that there is no mistake with the number of hours and the rate. The tax withholding amount should be correct so make sure to check this.
Human errors do happen. You should have an understanding of your pay stub and take time to check it every time you receive one. This will not take much of your time. If you can read your paycheck, then you are assured that you are getting the amount that you deserve to get.