Good Financial Reads: A Closer Look at Your Paystub
Break Down Your Paystub, and Learn the Importance of Pre-Tax Savings
We always talk about how much we make in terms of gross income. However, no matter how much we get paid, the amount that we actually take home always feels too small. To add insult to injury, payroll companies give us pay stubs that are impossible to decipher, and good luck trying to ask your payroll department for an explanation…Understanding the breakdown of your pay stub will help you better understand your tax withholding and optimize your savings. So here is a breakdown of the major items in your paystub, from your gross pay to your take home income. Everyone is different, so little differences may apply to you.