How to Read Your Paycheck

How to Read Your Paycheck

PERSONAL AND CHECK INFORMATION

In the first section of your check labeled ‘Personal and Check Information’ is where you will find your personal information such as full name, address, the client you are working for, and your Employee ID if you have one assigned to you. At the bottom of this section, there is a ‘Check Date’ section followed by a date. This should not be confused with the ‘Pay Period’ are the dates you have worked for the amount earned on this specific check. The ‘Check Date’ is the date in which you were paid for the ‘Pay Period’ listed directly above.

 

 

 

 

 


NET PAY ALLOCATIONS

In the next section below ‘Personal and Check Information,’ is the ‘Net Pay Allocations’ section. Here you will find your check information, the last four digits of your checking account if you are set up for automatic deposits, your net pay for the specific check and your net pay for year-to-date. ‘Net Pay’ is what you are paid after Federal, State, and local taxes are pulled from your income.

 

 

 

 

 

 

EARNINGS

In the second column is the space allocated for your ‘Earnings.’ This is where your check amount is broken down by regular pay hours, overtime, gross earnings, total hours worked expense reimbursements and/or other payments. Again, in this section, it will show you all of these descriptors by the current pay period and year-to-date. In the third column of this section, there is a descriptor called ‘Rate’ – this is your pay rate per hour. You should multiply the rate by the number of hours you have worked to get your ‘Gross Earnings’ for the current pay period. You can see as you go down the row for ‘Gross Earnings,’ you will see your year-to-date gross earnings. Gross Earnings are what you make prior to taxes being taken out of your check. However, take note, that if you have expense reimbursements or other payments added to your check in the bottom row of this section, these are non-taxed payments and will be added as is to the total of your check.

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WITHHOLDINGS

In the next section under ‘Earnings’ is the ‘Withholdings’ section. Here you will find all of the withholdings and their amounts per descriptor such as Social Security, Medicare, Federal Income Tax for the specific pay period and year-to-date. In the second column of this section is a descriptor labeled, ‘Filing Status.’ This is what you filed as on your W-4 Form.

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DEDUCTIONS

In the final section of the second column under ‘Withholdings’ is a section labeled ‘Deductions.’ Deductions are the items that you have opted into to allocate part of your income for such as insurance. As you continue down the row, you will see the amount taken out of your check for the specific pay period and year-to-date.

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NET PAY

‘Net Pay’ is what you are paid out of your total earnings after all withholdings and deductions are removed. At the bottom of your paystub, you can see what your net pay is for the specific pay period as well as year-to-date which means what you have been paid all year thus far.

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FULL PAYCHECK LAYOUT

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