Reading a pay stub examples

What is a pay stub?

A pay stub is a document that outlines an employee's earnings and deductions for a pay period.

Gross pay vs. net pay

Gross pay is the total income before deductions, while net pay is what you take home.

True or false: Overtime pay is included in gross pay.

True, because overtime pay adds to the total earnings before deductions.

What deductions might be on a pay stub?

Common deductions include federal taxes, state taxes, Social Security, and health insurance.

Fill in the blank: Net pay equals gross pay minus _____ .

deductions

Difference between hourly and salaried employees

Hourly employees are paid for each hour worked; salaried employees receive a fixed amount regardless of hours worked.

What is FICA?

FICA stands for the Federal Insurance Contributions Act, funding Social Security and Medicare.

True or false: You can have multiple pay stubs in a month.

True, because pay frequency can vary (weekly, biweekly, monthly).

What is a year-to-date (YTD) figure?

YTD shows total earnings or deductions from the beginning of the year to the present pay period.

What might 'withholdings' refer to?

Withholdings are amounts deducted from your paycheck, often for taxes or benefits.

What does PTO stand for?

PTO stands for Paid Time Off, time you can take off while still being paid.

What is a direct deposit?

Direct deposit is when your paycheck is electronically transferred to your bank account.

How is overtime calculated?

Overtime is typically paid at 1.5 times the regular hourly rate after 40 hours worked.

What is a deduction for health insurance?

It's the portion of your paycheck that pays for your health insurance premiums.

What does 'taxable wages' mean?

Taxable wages are the amount of earnings subject to tax deductions.

What is the purpose of a pay stub?

A pay stub helps employees understand their earnings, deductions, and taxes withheld.