What are Paycheck Stubs?
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A paycheck stub is a document provided by your employer to you that showcases your gross earnings, deductions from those earnings, and net pay. Pay stubs in partnership with paychecks, which showcases what was paid for and why both the employees and employers are knee towards it.
How are Paycheck Taxes Calculated?
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Paycheck taxes are then calculated based on your earnings and other factors. First, the federal income tax is taken out, this depends on your salary and how many allowances you claim on your W-4 form. Then comes social security and Medicare taxes are deducted. Depending on where you live from there the state and local taxes are also deducted. Your employers use tax rates and information from your W-4 form to figure out how much to withhold from each paycheck.
What does it Mean to Get a Paycheck?
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You are then paid for the work you have already done on a paycheck. it will display your wages for that pay period, any tax/deductions are then taken out from those earnings, and then the remaining sum of money is the amount you can take home (net pay).
