WorldExecutivesDigest.com | Ways to Ensure Your Pay Stub is Accurate | Everybody loves payday. Gone are the days when you are handed your paycheck at work, and you head directly to the bank on your lunch to cash it. With direct deposit, life certainly has become much easier. Today, most employers stipulate that employees agree to direct deposit. For those employees without bank accounts, employers usually allow funds to be deposited directly to a debit card.
The unfortunate thing about these arrangements is that it requires an extra step to track down a pay stub. Pay Stubs are statements from your employer that detail how many hours you worked, what pay rate you receive, and the deductions made from your pay. The stubs also show your Year-To-Date earnings, which can be useful for financial planning. Every employee needs to review the paystubs regularly. Companies can make mistakes and, if not caught, they can compound over the years. Here’s how you can verify the information on your paystub.
Know the Pay Period
When verifying your pay, the first thing to do is to know what period of time you are being paid for. Generally, companies are paying you for hours worked a week or two before payday. Some temp agencies pay sooner. As an employee, you need to know this information. Depending on your company check stub maker, the statement should include the period of time you are being paid for.
Track Your Work Hours
Now that you have the dates of the pay period track how much you worked during those days. If you work fluctuating hours, it helps to log exactly how many hours you worked each day into a calendar. A manual or digital log works. The log is beneficial for those positions where you are sometimes called in to work an additional shift or cover a shift for a coworker. Each day, get in the habit of recording your start and end times and calculate the total work hours. At the end of the week, do a quick tally. If you took a shift for someone, a small note of that could be valuable. On payday, take the total hours you were paid and verify with your log. If you identify a discrepancy, report it immediately. With your log in hand, it will be easy to correct.
Know What Is Deducted
If you’ve signed up for insurance or retirement, verify the accuracy of those deductions. Ideally, you can review this when first enrolled, and it should follow through each payday. If you have an annual enrollment and make a change, make sure the change is made, and the new amounts are deducted.
Check Your Withholdings
This, too, should be checked when first employed or whenever you make a change. The federal and state tax withholding is based on the number of exemptions you claimed on your W4. Some paystubs will indicate the number of exemptions next to the deductions, but not all. If you think the withholding is inaccurate, check with your human resources department. You can always complete a new W4.
Know Your Company Policies
If you are entitled to certain benefits, know under what circumstances they are to be paid. The company policy will dictate if you receive additional compensation for over eight hours in a day or forty in a week. The policy will also state the amount you will be paid for the overtime. Your log will tell you if you’ve fallen into one of these categories. Your paystub will indicate premium hours on a separate line.
Some companies pay additional compensation for working night hours, or Sunday’s or certain holidays. Ensure you know the policy and verify on your paystub that you have received the appropriate compensation for those premium hours. These, too, will be listed separately.
For hourly workers, verifying the work hours on each paystub is important and requires tracking those hours. It’s worth it. Errors can be made. Both hourly and salaried workers should verify deductions at enrollment and with any change. With pay and withholdings, data entry errors can be made. It’s best to catch them early.