5 Tips for Understanding Your After Taxes Salary
Did you know that over 80 million American workers have experienced paycheck errors in 2016? And while you may have been part of this large percentage, it’s important that you are fully understanding your payslip.Let’s face it. Nothing compares to payday. But how certain are you that all of your deductions are accurate?
Are you unsure of what to be keeping an eye out for on your payslip? Here are 5 tips on understanding your payslip better.
The first step in understanding your payslip is understanding your withholdings. Prior to employment, your company should have had you fill out a W-4 form that recorded how many dependents and deductions you wanted to file.
Fortunately, withholdings could be updated frequently. So if you’ve had a life change or change in marital status, you can usually change this before your next pay period.
Paid Time Balance
Understanding your payslip comes with understanding your paid time balance. During orientation, Human Resources management should have explained your benefits and how much time off you get annually.
This should include but is not limited to:
- Paid Time off
- Paid Holiday
- Personal Time
- Sick Time
- Vacation Time
In addition, you want to be sure to keep track of your time off because the correct balance may not always reflect on your payslip.
Sites like PayrollServiceAustralia are great if you’re looking for a payroll service that will break down how much of your paycheck is withheld for taxes. The different kinds of taxes you should look out for are:
- Social Security
- Federal Withholding
- State Taxes (depending on the State)
Year to Date Earnings
Want to forecast how much you’re going to make throughout the year? Every paycheck allows you to view your year to date earnings.
While gross earnings differ from net earnings, you are able to see exactly how much you’ve earned and how much was deducted from your paycheck annually in order to calculate your correctly when tax season comes around.
Whether you’re on an hourly wage or salary, you’re going to want to know exactly how much you’re getting paid. When reading through your payment information, you are not only going to see earnings and deductions but also which bank account your money is going to.
In addition, if you decided to change your method of payment throughout the year, the payment information section will also inform you whether you are currently using direct deposit or will be receiving a paper check.