One of the things that make us excited in this life is receiving our paychecks. Not very many people question the entries in their paychecks and happily deposit it in their bank accounts. The reality is that there are times when human error can cause mistakes in the amount that is reflected in your paycheck. You may be losing money because of errors in your paycheck if you don’t check your pay stubs.
If you want to prevent loss from an erroneous paycheck, then you need to understand and study your pay stub every time you receive one. Employees were surveyed and it was found that 50% of them had at one time or another found mistakes in their paychecks. To ensure that you are getting your hard-earned money to the last cent, then you need to understand the items that are on the pay stub.
The tips here will help you examine your pay stub.
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.
You also need to understand everything in your pay stub. There are many things that are not included in your paycheck. You can find these out below.
There are pre-tax deductions that are removed from your salary. Health insurance and retirement account money are some of these items. 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.
State taxes, federal taxes, FICA taxes, health insurance, health savings account deductions, and retirement account are amounts taken from your paycheck.
Next, you need to check that all the numbers are correct. You can enter the numbers wrongly. Printers don’t make the errors; it is the one who entered the numbers. Mistakes are made before they are printed. There are only two possibilities; either you entered your numbers erroneously or somebody else made the erroneous entry. This is something you can control. You should check your paycheck 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 out!
It is always possible for people to make errors. This is the reason why you need to understand and to check your pay stub. It only takes a few minutes to do this. IF you don’t want to lose money on pay stub errors, then you should make sure to check it every time.