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What Is a Paycheck Stub? Your Questions are Answered Here



What is a paycheck stub? If you’re new to the business, this is a question you’ve likely encountered. Click here for a detailed answer!

Did you change jobs that now pay you via paycheck? Will you now receive pay stubs or paycheck stubs at your new job?

Because of the effects of the COVID-19 crisis in the economy, many have become unemployed now. Some have no choice but to get new jobs, so they can survive this crisis. A recent survey says 49% of Americans expect to live paycheck to paycheck this year.

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So what is a paycheck stub? How do they work? Keep reading to learn about using a paycheck stub and how to read it.

1. What is a Paycheck Stub?

First, let’s address an important question: what is a paycheck stub?

A pay stub or paycheck stub is the part of the paycheck that contains the details about an employee’s pay. It lists down the wages earned in a pay period, taxes, and other deductions. It contains a summary of how your total earnings got distributed.

A typical paycheck stub has three sections. The first section shows your total earnings from the pay period, including overtime. It will include the hours worked and pay rate as well.

The next part includes taxes, deductions, and contributions. If you have benefits like health insurance, you can also see them here. The deductions are taxes and deductions after tax like disability insurance.

It also includes withholding, which refers to the money your employer needs to take out of your paycheck on your behalf. That includes state and federal income taxes, Social Security, and worker’s comp.

The final part has your net pay or the amount of money you take home after all those deductions.

2. How Does a Paycheck Stub Work?

You may want to understand how a paycheck stub works. For the first and most important reason, you or your employer can use it to settle issues with employee pay.

If you get paid with a paper check, it’ll often come with a paycheck stub. If your employer pays you via direct deposit to your bank account, you get an online copy of your pay stub online.

You can use it to understand the deductions made to your wages too. You can also use it to compute what you earn per pay period. When it’s time to fill out the W-2 form for your taxes, you can also use your paycheck stub.

3. Why you Need a Paycheck Stub


There are many reasons why you need a paycheck stub and more why you need to learn how to read one. Have you ever doubted the computation of your pay? If you have, you only need to look at your pay stub to see how the payroll department did it.

Pay stubs verify your employment and salary history. You’ll need to have a copy of your most recent pay stub when you apply for a loan. Banks and lenders will ask you to bring proof of employment, and that’s often your latest pay stub.

It’s also useful if you want to change new jobs but are unsure about the new salary offered to you. You may enter an interview for a new job and get asked how much you expect to earn. Use your last pay stub as a basis of how much you were earning before.

Note that it’s illegal in some states for employers to ask for the prior salary of candidates in job interviews.

Make it a habit to keep your paycheck stubs. You can use it to confirm the deductions in your paychecks or verify your salary.

4. What are Common Wage Deductions?

Some wage deductions you’ll see on your paycheck stub may include:

  • Federal income taxes
  • State income taxes
  • Social Security
  • Medicare
  • Health savings accounts
  • Insurance
  • Retirement savings plans
  • Flexible spending accounts

The federal government takes a portion of your income from every paycheck. This is your withholding tax, which gets managed by the IRS. Depending on where you live, your state may not need to collect state income tax.

Every working American also needs to give a part of their paycheck to Social Security. The federal government also obliges all working US citizens to contribute to Medicare. If you have a 401K plan or other retirement savings plans, a part of your salary goes to your retirement account.

These are only some of the deductions to your wage. These deductions from your gross pay are automatic. These deductions often come in codes on your paycheck stub.

You need to know how to check and compute these deductions to know if you’re getting and contributing the right amount.

5. How and Where to Get a Copy of your Paycheck Stub

paycheck stub

You can use a copy of your paycheck stub for a credit application or as a verification of your employment. If you don’t have any copies of your paycheck stub with you, you can get one from your employer. You can also use the company’s website or a payroll service site your company uses.

If you can’t find it, ask the Human Resources or Payroll Resources department. They may provide copies of your paycheck stubs or give you login access to the site. If it’s a small business, and it doesn’t have a website, talk to your employer.

If you’re a first-time business owner, you can create one or use a paycheck stub template. If you have a pay stub from work you’ve done before, you can imitate their layout or use it as a basis for your template. The important thing is that it shows the vital information we discussed earlier on it.

Get to Know How a Paycheck Stub Works

What is a paycheck stub? We hope we provided the answers you seek and that you picked up something useful from this guide. We also hope you understand the information on your paycheck stub better now.

Do you have more questions about your paycheck stub? Are there other concerns you have about how you can bring up discrepancies with a paystub? Check out our other guides for more answers.

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Tips For Small Business Owners




This article talks about the tips for small business owners. Here you will find advice from successful business owners like how to adapt to adversaries, getting a Contract Management System, and delegation.

Running a business is challenging. It can be frustrating for business owners to know just how complicated running a business is. Contrary to popular belief, it is not easy as just setting up your business and waiting for it to be successful. We are all too familiar with the success stories of the CEOs of multi-billion global companies. Mark Zuckerberg, Bill Gates, and Steve Jobs are just some household names that have inspired many due to their unprecedented stories of success.

Their tales of triumph would always begin with, “It all started with a dream.” Blah blah blah. I am sure that you have heard of all those cliched stuff that makes for a great inspirational story. However, what they do not tell is that it is not a black-and-white story. There are multiple factors that affected their success.

Here we have compiled a list of advice from business owners that have achieved success. Take note that there is no perfect formula and these are just advice that majorly helped these companies.

Set a Clear Mission and Vision Statement

Before you set forth with creating your company, one important thing that you have to do is to set a clear mission and vision statement. The vision and mission statements of a company has a lot of uses. The purpose of your organization and its future endeavours are all dependent on the goals that you’ve set.

First of all, it will provide you with the purpose that your company will need when it faces adversary. Your Mission and Vision statement would also play a crucial role for your decision making.

As a business owner, your main task will be to make the big decisions. Use your Mission and Vision statement to help you decide which avenue to take. Always ask yourself as to which action would help you accomplish your goal better.

Research Existing Competition

Go around your local area and check whether you have any competition. Take note of what they are doing and ensure that you do something better. There is nothing wrong with getting ideas from your competition as long as you don’t exactly plagiarise their tactics. Just get the general gist and tweak it to your advantage.

Be Innovative

Most of the companies  in the Fortune 500 list achieved their success because their products/services were able to fill a void in the market. They re-invented the wheel so to speak. You don’t necessarily have to come up with an entirely new and original idea. You can take existing ideas and then give it a dash of creativity.

One thing that you have to know is that the market is very volatile. It will experience a lot of changes. You don’t necessarily have to keep up with all of the shifts but you do have to know how to adapt to these market changes.

Perhaps the best example of this would be Blockbuster and Netflix. Blockbuster used to be a mega-company that dominated the Video Rental agency. For a small fee, you can watch any video that you want. It was the norm for anyone to pass by a Blockbuster store to borrow a film to watch for that night. However, the rise of popularity of the Internet and streaming sites spelt out its demise. Without adapting to the market, it has become a warning sign to businesses that adaptability is key to staying on top.

Netflix, on the other hand, went the other way of Blockbuster by changing its business format and became a streaming site. Today, the annual gross income of Netflix is a whopping 16 Billion Dollars.

Invest In A Contract Management Software

You need organization in your life. No matter how small or huge your business is, you need to organize your systems. One important aspect that you have to take care of are your contracts. It is an important asset for your company.

When you have a Contract Management Software in place, you will have a full visual of your contracts and their performance. This means that you will most likely have a better grasp of how to manage your company. It will also allow you to mitigate the risks that you might otherwise take.

Learn To Delegate

You can’t do it on your own. You need to trust your employees with some of the key processes of your company. One mistake that new business owners often make is that they do not give specific tasks to each person which leads to chaos and miscommunication. Having a proper organizational structure will allow you to improve the accountability of everyone in the office. You will also be able to pinpoint any non-performing members of your organization and make the appropriate action.

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Trends You Need to Know About in Business Education




Business is a fast-changing world, with quantum leaps in technology and globalization making yesterday’s “next big thing” rapidly obsolete.

Business education is changing too — and probably not fast enough. Academia tends to be slow to shake off the shackles of tradition, evolving more incrementally and less radically.

There are few fields in which educators need to remain so informed of the latest trends and technologies, in order to provide their students with an education that is up to date and relevant to the constantly moving target that is today’s business world.

Here are five top trends in business education that are happening now.

1) The Workplace Of Tomorrow Will Need Soft Skills Like Creativity, Communication And Problem Solving.

Advances in artificial intelligence, robotics and computing will replace many workers in the near future. Yet they will also create a demand for skills unique to humans, including creativity, critical thinking, communication, problem solving, innovation, collaboration and adaptability.

Technical skills will always be needed and shouldn’t be overlooked by any business student, but the coming trend in business is big thinkers with the skills to harness the powers of human creation.

2) Digital Learning Platforms, Online Education And Hybrid Formats Will Become The New Normal.

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The days of getting a traditional four-year bachelor’s degree followed by a two-year MBA at a brick-and-mortar university are in decline. While there is undeniable value in a broad-based foundation in business education, rising costs have burdened students with enormous student debts and led many to question whether the return on this investment makes it worthwhile.

Also, the rapidly changing business climate has raised many doubts about whether a one-time education is adequate to equip business grads for the changes sure to come in the years ahead. Online education, continuing education, digital learning platforms and hybrid formats that include both classroom and remote education are widely seen as the wave of the future.

3) Expect To See More One-year Mba Degrees — And More Hiring With No Degree At All.

Fast-track MBAs for working professionals are another growing trend, in which people with a given amount of professional experience can attend courses for one year and emerge as certified business management professionals.

In addition, more forward-looking companies are abandoning the requirement for any college degree at all, recognizing that targeted alternative training and real-world job experience can be more valuable than a college diploma.

4) Entrepreneurship Is And Will Remain A Growing Field.

Apple, Google, Microsoft, Amazon and Facebook are the five most valuable companies in the world — all of them tech companies and all founded by entrepreneurs (several of whom were college dropouts).

The chances are good that all of these companies have affected your life in a personal way. They employ hundreds of thousands of people and have a combined market capitalization of around $5 trillion. And each of them was founded by a small handful of forward-looking people harnessing new, disruptive technologies.

Machines and robots cannot replace this kind of uniquely human innovation. Business schools will and must increasingly teach the skills needed to start new enterprises that can literally change the world, in big ways and small.

5) If You’re Betting On The Future, Think Ai, Stem And Big Data.

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Having said all of the above about human innovation, let’s not forget that the machine-based “thinking” behind artificial intelligence (AI) — like the driverless cars that our grandchildren will someday take for granted — are a supremely important component of future business development. And someone will have to create, hone and perfect these technologies.

Studies in science, technology, engineering and mathematics (STEM) are among the surest ways to climb aboard this inevitable wave.

The same is true of “big data” — the hyper-explosion of information that is available to us all, but is too much to grasp without intelligent analytics and insightful processing. Talented professionals will be needed in the years to come to turn millions of data points into actionable business plans that will work in the real world.

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Starting A Tech Company? 5 Clever Ways To Afford All the Tech You Need For Your Business




Permit fees, employee expenses, equipment, and advertising are only some of the business startup costs you should keep in mind when building your business. However, these costs may vary on an industry basis.

If you’re starting a tech company, your inventory and equipment may be the highest startup costs. You might be thinking twice about building your startup due to lack of funding, but this shouldn’t stop you.

Don’t know how to fund a tech business? We’ve got you covered. We’ll tell you everything about your options. Read on for your guide to choose the best funding to start building your tech startup today.

Can You Get Funding You Need When Starting a Tech Company?

Most technology entrepreneurs think twice about building their startup due to lack of funding. However, affording the basic startup costs is easier than you think. Today, founders can even secure funding that won’t cost them a thing.

Don’t know what we’re talking about? Here are the top 5 funding options you should consider to start a tech company.

1. Small Business Loan

Small business loans are one of the most popular funding options for companies big and small. Before applying for a loan for a small business, you should search for lenders who specialize in funding companies in your industry. Choosing a financial institution that understands your business model will allow you to secure more funding at better terms.

2. Equipment Loan

Equipment can be one of the biggest costs tech startups face. Certain lenders offer equipment loans to cover these assets. It will depend on the type of machinery you need and your company financials.

3. Small Business Grants

Small business grants are given to startups and business owners by private companies, the Federal and State government. While it may take some time to receive a grant, these funds come with no strings attached. You won’t have to repay the institution.

4. Inventory Backed Loan

So you bought the inventory to fulfill your orders, but you need to buy equipment or other supplies to produce the items. You can request an inventory backed loan to cover these additional costs.

The lender will use your inventory as collateral on the loan. Typically, financial institutions offer 75% of the inventory appraised value or 50% of its cost.

5. Account Receivable Loan

Maybe your startup idea was a hit and you don’t have enough capital to fulfill all the orders coming in. You don’t want to turn these customers away. An account receivable loan can allow you to secure the funding you need.

Lenders offer early payment of an outstanding invoice in exchange for a fee. In this loan, your invoice will be the collateral on the loan.

The Bottom Line

Starting a tech company can be the best decision you’ll ever make. It will all come down to developing the right business plan to turn your vision into reality. While lack of funding may be holding you back, there are many funding options available.

It’s vital to do your research and choose the type of funding that fits your business plan. You may consider consulting with an expert to get a clear idea of the best approach depending on your business financials.

Want to learn more ways to turn your business idea into a reality? Check out our Business section to find more insightful articles.

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