Presented by Paystrubmakr.com By John Wolf
Understanding your pay stub tax information and uses.
You can call it a pay stub, paycheck stub or pay-slip, it is a piece of paper. It is where your salary and the deductions that are related to your wage are written each time you are paid; you can have a pay stub every payment period like one week, two weeks or a whole month, if you are working as an employee or when you get paid as a contractor.
A pay stub will show the total earnings for a specific pay period, the deductions, and the net paid after the removals for taxes.
It was common to have a checkbook for payroll that would have the paycheck and paystub made on one page so the employees will cash the check and keep the stub. These days it is a direct deposit from the employer’s bank account to the employee’s bank account. An online version that the employee can print should be available to the employer. As a small business owner or self-employed, you can go online to PAYSUBMAKR.COM. You need to fill in the necessary information, and the website will calculate your deductions altogether, then you can print it.
If you are on salary, it is essential to make yourself a habit to review your pay-stubs and keep a copy of it for any case you may need to check or show the proof of your earnings as an employee.
What is written on a pay stub?
A pay stub should include the general information like dates, names, and addresses related and the values of the pay period wages.
Just fill this form and you get your pay stubs
Gross pay: or gross salary is the total amount paid as wages by an employer, before deducted state and federal taxes, social security and health insurance. As an example, if your yearly salary is $50,000 and your pay period is each month your Gross pay will be $50,000 divided by 12 that is $4,167 from which the taxes, social security, and health insurance will vary according to your status. And tax brackets.
Tax brackets: The range of incomes taxed at a given rate. Taxation is based on principle, you make more you pay more. The tax bracket is the scale by the US government for different levels of income. It fluctuates between ten percent to 39.6% (2017)
State taxes: are different in every state there is a tax rate as the state government decision. It has its brackets too. Some have the bracket like the IRS some have a flat rate, and others have no taxes at all. 7 State Income Tax Myths
Local taxes: Some metro areas do have their taxation system. New York City is one of these metros.
Insurance deductions: Mainly general health, and some dental, vision, disability and in some cases even life insurance. You should see the details on your pay-stubs.
FICA: Federal Insurance Contributions Act which is the contributions to Medicare and Social Security
wage garnishments: Debt or child support payments withheld by the employer are called garnishments. You will see the amounts on your paystub as the net pay.
Back-pay: Any money that your employer owes you and he is paying back to you on the same paycheck with the wage.
Net-pay: This is the sum of money you take home after all deductions.
A Year To Date: A follow up that will appear on your paystub and help you or a possible lender in case of a loan to follow up you total year earned and deductions made.
You can watch our help video HERE.
Pay stub uses
Generating online pay-subs makes things easy for small businesses HR managing, with no need for long hours calculations of withholding of taxes and social security deductions. The pay-stubs generator makes the production of the payroll’s paystubs easy and, with just introducing the personal data and the rate per period and one click for printing, you have it done and saved on your PC.
Your HR person will find it easy to archive and review when you need to see the total gained by one or more employees. It will be helpful for evaluations of salary changes and promotions.
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