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What are all these numbers does your pay stub look like gibberish let's dive in and learn how to read it Music hi it's Leslie Augusto, and today we're gonna talk about how to read your pay stub first of all pay stubs can look a little different this depends on the state that you're in and the payroll provider your company uses, so we're going to use a sample from gust oh but yours could be formatted a little differently so the main formula you're going to see on your pay stub is your gross pay — your pre-tax deductions — employee paid taxes — post tax deductions equals net pay and net pay is the money you take home at the end of the day okay let's define some terms gross pay is the big number it is your salary it's what you earn for the whole pay period pre-tax deductions are things like health insurance and 401 K these are contributions that are taken out before taxes are calculated on your pay stub then employee taxes these are state and federal income taxes Social Security and Medicare state disability in some states and local taxes in some areas then post tax deductions are things like garnishments if that applies to you do all the math subtract those out, and you're left with your net pay what about other numbers on your pay stub employers actually might include some reimbursements that's if you bought something for the business, and you just need to be paid back for it, you might also see employer contributions — insurance like health insurance or 401k and employer paid taxes employer paid taxes include FICA which is Social Security and Medicare and state and federal unemployment and that's it got small biz questions ask us to subscribe to our YouTube channel to quickly learn how to become a payroll Pro
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