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Your paycheck stub serves as proof of income and government agencies, lenders and landlords often request them to verify your earnings. A pay stub contains all your income information, so...
That information helps you understand how much money you have coming in, and what is being taken out for deductions. “Make it a habit to review your pay stub at least once a month.
Understanding Pre-Tax vs. Post-Tax Deductions. Pre-tax deductions are when your employer pulls money out of your check before the IRS gets its claws on its share of your income.
A salary statement, commonly called a payslip, pay stub, paystub, pay advice, or sometimes paycheck stub or wage slip, is a document received by an employee that either includes a notice that the direct deposit transaction has gone through or that is attached to the paycheck.
The amount to be withheld is based on both the amount wages paid on any paycheck and the period covered by the paycheck. Federal and some state withholding amounts are at graduated rates, so higher wages have higher withholding percentages.
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The Current Tax Payment Act compelled employers to withhold federal income taxes from workers' paychecks and pay them directly to the government on the workers' behalf. At the time of the act, Social Security payments and a World War II Victory Tax were already being withheld.
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