Are you wondering how to interpret your pay stub from your employer? And what do all those numbers and categories mean?
Look no further, because we’re diving in to answer the question, what is a paystub? And what you can do with that information.
What Is a Pay Stub?
A pay stub is a record of the wages you earn each pay period, including your gross pay, employee details, and more. This can be digital or paper-based, and it tells you how much money you’re earning each paycheck.
It also includes the amount of money you’re paying as taxes, and for any other deductions, such as health insurance or other things you’re paying for out of your paycheck from your employer.
But what is a year-end paystub? This is the same as the last pay stub or the one that comes with your last December or early January paycheck. This will include all the wages you earned in that calendar year, which will help you file your taxes.
The information on your year-end pay stub will be different from what is on your W-2 because it includes your non-taxable income and gross wages.
What Information Is on a Pay Stub?
Different states have different requirements for what must be included on your pay stubs. Some states do not require employees to have access to pay stubs. Others have different laws about whether they can give employees access to pay stubs on paper or electronically.
In general, your pay stub should have the dates for your pay period, your gross wages for that period, any taxes or deductions, and then your net pay. If you work overtime, it should also distinguish the number of regular hours vs. overtime hours you worked.
How Does This Help Me?
You can use your pay stubs as proof of your employment for a new loan or lease. So if you’re trying to rent an apartment, or buy a home or a new car, your bank might ask for your pay stubs as proof of your salary.
Having access to your pay stubs can also help you keep records of what you’ve earned, and what you’ve contributed towards your taxes, retirement accounts, and social security.
Whether you’re looking for a way to prove your employment for a new lease, or you’re an employer looking to design your employee pay stubs, this paystub maker makes it easy to find what you’re looking for.
Reviewing Your Pay Stubs
So, what is a pay stub? It’s a paper that details the payment information that your employer should give you every time you get paid. This information can help you apply for new leases and loans.
It should include the gross pay before taxes, any taxes that were taken out, any other deductions such as insurance or retirement, and finally your net pay that is the check you can cash.
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