May 13, 2024
Providence House continues to build our resident’s Workforce Development skills. Last week, we focused on understanding employee paychecks. This week, we will learn skills for understanding your paycheck.
Topic: Understanding Your Paycheck
Remember: you don’t take home every dollar you earn. You have to pay taxes, and employers must pay them from your paycheck.
EMPLOYMENT FORMS
In order to get paid when you start a new job, you will fill out several employment forms. When you complete a Form W-4, you determine how much of your salary your employer will withhold for taxes. The amount is based on how many allowances you claim. You get an allowance for yourself, one for your spouse, and one for each dependent.
METHOD OF PAYMENT
You may be able to choose how the company pays you. The most traditional method of payment is a paper paycheck. But many employers also offer direct deposit and pay straight into your bank account. Other employers provide payroll cards and electronically load your payment onto a plastic card.
PAY STUB
There are two parts to your paycheck—the paper check and the paystub that explains everything that is on your paycheck. The information on your pay stub is usually listed in two columns. One is for this pay period (“current”), and one is for all of the pay periods since January 1 of this year (“year-to-date”).
GROSS VS NET
In both columns, you see your gross pay or the total amount of money you earned. You also see your net pay, the amount of money that you get to take home after taxes and deductions are taken out. Net pay is the dollar amount on your paycheck. It is also known. as take-home pay.
DEDUCTIONS
Your pay stub shows all of your deductions. Your retirement savings plan, health plan, etc. are usually paid with pretax dollars. Then taxes such as federal income tax, Social Security, and Medicare are deducted. Most states also collect state income tax. In some areas, you must pay local taxes as well.
YOUR RESPONSIBILITY
You are responsible for making sure that this information is correct. The best way to do this is to understand what is being withheld and what it is being used for. If you have questions about anything on your paystub, talk to your supervisor, someone in human resources, or your employer.
Questions about the Workforce Development program at Providence House? Contact Dr. Whittney Polley, Director of Education at 318-221-7887 or wpolley@theprovidencehouse.com.