Do you know where your money is going? If your employer isn’t providing you a pay stub, then you might be missing out on vital information.

There isn’t a federal law requiring a stub be issued, but most states have laws that require it.

If you aren’t getting one and need to know what a pay stub is, you’ve come to the right place.

So what is a pay stub? Keep reading to learn what a pay stub is and what it tells you about your paycheck.

What is a Pay Stub?

A pay stub is a way for your employer to let you know how much money is on your paycheck and anything that gets taken out of your pay. It provides a line by line account for any taxes and withholdings that change the amount of money you take home at the end of the day.

You should receive one every time you get paid. Your paycheck typically happens on a bi-weekly or monthly basis. Your stub should be attached to a paper check. If you have your paychecks deposited electronically, your employer can provide a pay slip detailing everything.

Your employer will use a pay stub generator to print this information.

What Information Does Your Pay Stub Include?

There is a lot of information on your pay stub, but it isn’t rocket science. Here’s the information that you will find in your payslip.

Gross and Net Pay

The most important numbers you will find are your gross and net pay.

Your gross pay is the total amount of money you made during a pay period before taking out anything. Your net pay is what you see in your bank account after everything is taken out.

Tax Withholdings

You have to pay taxes. When you are employed at a company, this happens before you get paid. There isn’t a need for you to do it yourself.

The standard taxes you will see withheld are federal, state, and local taxes.

Insurance Deductions

If you work full time, then there is a good chance your company offers insurance. If you take advantage of this, you will see this number in your deduction totals.

Investment Withholding

Many companies offer investment withholding. These can be pensions, IRAs, and 401ks. Any money withheld and sent to investment accounts appear in this section.

Wage Garnishes

If you owe any debt, have child support, or owe back taxes, then you can have your wages garnished. This happens when you have payment problems. The government will take your money before you can spend it if they think you won’t pay.

Back Pay

Sometimes an employer will owe you money. This discrepancy can happen if there are changes in your pay rate or you move from hourly to salary.

Don’t Let Your Questions Go Unanswered

Now that you’ve answered the question: what is a pay stub, you should have all the information you need to make sense of it. If you are still unsure about something, then let your employer know. They can tell you anything you need.

Are you looking for more ways to keep track of your finances? Click here to learn about seven apps that can help you manage your money.

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