It is the expectation of everyone after working to get a paycheck as agreed with your employer before starting a job. One thing that you need to know is that every paycheck usually comes with a pay stub. The pay stub for those who don't understand is a piece of paper that shows all the deductions that are made on your pay. Due to the fact that pay stub earning and deductions come with codes, some people find it challenging to understand how to pay stub works. To make it clear for such a person, the following are some of the explanation on the different deductions made on the pay stub. Visit this website to get started.


First, you pay for the Fica Med Tax. You may have realized that what you were promised is not exactly what you received. Some of your money goes to the Federal Insurance Contributions Act (FICA). The federal government deducts some money from your salary to contribute to the Medicare program. There is the need to know that you are eligible for this program once you attain sixty-five years.


Fica SS Tax is a common deduction on your pay stub. It is important that you get to know that everyone who is employed is legally obligated to contribute to social security. In case you have been wondering what this is for in your pay stub, you need to know that Fica SS Tax is for this purpose. The social security supports eligible beneficiaries especially those with disabilities and the retired employees. You need to know that you can claim that when you reach the age of 67 which is the retirement age.


State tax deductions are also common in the pay stub. You will find that there is a state taxable column on your pay stub. If you find a specified amount, you need to know that your state allows the state taxes deductions. In case it is blank, that means that your state does not allow state income taxes. It is therefore important to know if your state allows the state income tax or not to ensure that the right deductions are made on your paycheck. Click for more info.


The other type of deduction common in many people's pay stubs is the Federal Tax. This is taken and recorded as the federal tax on your pay stub deductions. There are several factors such as allowances and tax rates that affect this form of deductions. Also, the employee benefits that you receive, retirement contributions and the pre-tax on health insurance also plays a significant part in what you are supposed to pay as federal tax.


There is the need to have an idea of the deductions that are made on your pay stub.

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Read more at https://www.huffpost.com/entry/how-to-handle-employee-pa_b_11914184.