Reading a Pay Stub
Wrap-up
The information on pay stubs is important. Make sure to read yours carefully and keep them in a handy place for future reference.
In this lesson you:
- Defined words commonly found on pay stubs
- Practiced reading a pay stub for information about income and deductions
- Calculated gross pay, net pay, and the percentage of income that goes to taxes and other deductions
On your own:
- Find an old pay stub. Yours may look a little different from the one in this lesson. What's your gross pay? What's your net pay? How much do you pay in deductions?
- Calculate the percentage of your income that goes to taxes (include federal and state taxes, Social Security taxes, Medicare tax, and any other tax you may pay, such as disability).
- Do you receive benefits, such as health insurance, a pension plan, or other employer- or union-sponsored retirement plan? If not, speak to your union representative or someone in your company's human resources department. The human resources department, often abbreviated as HR, handles employment policies and procedures. Find out what makes someone eligible to receive benefits.