It is safe to say that both employer and employees have been having a difficult time trying to navigate the pay stub world because it concerns both of them. Regardless of the position you hold within a business or company, don’t feel bad about yourself if you are still trying to understand the details of pay stub deduction codes because it is a problem most people are encountering. The good news is you just need a little basic knowledge and all your troubles will go away. Continue reading to learn more about the different pay stub deduction codes and their uses.
Pay stub deduction codes are the codes you see in a column when you look at your pay stub that shows what your employer is taking from you to ensure you are paying your taxes and contributing to various systems. Given you are adult earning an income in the America, it is your responsibility to pay federal income tax which is one of the pay stub deduction codes you will see on your pay stub; you have no choice whether to pay this or not.
In addition to federal income tax pay stub deduction codes, majority of states also levy a state income tax on their working adults but seven states do not and have come up with other ways of taxing their citizens. Social security as it is commonly known but will appear on your pay stub as deduction called FICA is another deduction code; this is paid by both employees and employers, commanding up to six point two percent of what you earn monthly. Kindly visit this website https://careertrend.com/13372157/how-to-get-a-copy-of-my-pay-stubs for more useful reference.
As you continue analyzing your pay stub you will come across a deduction called Medicare which of course is another type of social security although it is specifically allocated for Medicare use. Medicare is a one point five percent deduction of your pay that is meant for only Medicare and nothing else. Life insurance, health insurance and dental cover are some of the benefits often offered by most employers to their workers which they have to contribute to monthly, if you are a beneficiary of such, you will see pay stub deduction codes on your pay stub.
The benefits you are extended by your employer will appear differently on your pay stub depending on what you have enlisted for. Pay stub is not as intimidating as it usually seems but if you are not satisfied you can read and research further for your satisfaction. After reading this article you now know what pay stubs are and what they are used for.