What are the deductions on my paystub?

Payroll deductions are wages withheld from an employee’s total earnings for the purpose of paying taxes, garnishments and benefits, like health insurance. These withholdings constitute the difference between gross pay and net pay and may include: Income tax. Social security tax. 401(k) contributions.

What are the four main deductions an employee will see on their paystub?

These range from FICA taxes, contributions to a retirement or 401(k) plan, child support payments, insurance premiums, and uniform deductions.

What are examples of post tax deductions?

Common post-tax deductions include:

  • Retirement funds. Some retirement funds are post-tax, like a Roth 401(k).
  • Wage garnishments.
  • Union dues, charitable donations, and contributions to 529 college savings plans.

How do I calculate my pay stub?

Based upon the length of the pay period represented by the pay stubs, (weekly, bi-weekly or monthly) the gross income is multiplied by the number of pay periods in a year. That is 52 x gross wages, 26 x gross wages, or 12 x gross wages, respectively. The result will be the annual income.

Why do I have post-tax deductions?

Post-tax benefit contributions are taken from an employee’s paycheck after taxes have already been deducted. This then means that the employer and employee will owe more income and employment tax, but the employee generally won’t owe any income tax on the benefits when they use the plan in the future.

Can I claim post-tax deductions?

Making a tax deductible contribution to your fund is easy. You can do it as a bill payment from your everyday bank account. The important thing to remember: The contributions must be post-tax if you want to claim them as a deduction on your return.

Is a pay stub the same as a paycheck?

Pay Stub — Is There a Difference? Yes, there is. A paycheck is a physical check, while a pay stub is a document that summarizes the amounts in a paycheck. As direct deposit is becoming more common, an employee is more likely to receive an email with a link to pay stub details versus a paper check.

How can I understand my pay stub?

Understanding Your Earnings. Look at the top of your pay stub. You will find basic information at the top of your paycheck stub, such as the name and address of your employer and the date that the paycheck was issued. You may also find information about the company that processes payroll for your company.

What are examples of deductions?

The definition of a deduction is the act of understanding something based on evidence. An example of a deduction is what a detective makes after he compares and interprets the details of an investigation.

What is FICA deduction?

FICA deductions refer to funds deducted from employee paychecks to help fund the Social Security and Medicare programs. Congress passed legislation setting the maximum amount of earned income taxable by the U.S. government for Social Security, known as the Federal Insurance Contributions Act.