- Jul 24, 2023
Read Your Paycheck Stub Abbreviations Like A Pro!
Do you sometimes feel that your paycheck stub is written in an auxiliary language? Nevertheless, you’re making a paystub or receiving one; there is much more going on than meets the eye with those tiny letters on your paycheck stub, so it can be hard to understand them all. In this blog, we will be decoding all these abbreviations and making you a pro at reading them all!
Basic Things which are Involved in a PayStub:
It’s great to have a basic understanding of your pay stub and what information it holds. Many companies include a detailed paycheck, while others only include the standard report. Here is the list of items that appear on a paystub that you need to know:
- Gross Pay: This is the amount you have been paid before any taxes or deductions are taken.
- Net Pay: This is the amount paid after all deductions and taxes have been subtracted from your gross pay.
- Federal Tax Amount: The amount collected by the Internal Revenue Service and the amount you pay to the federal government for your income tax.
- State Income Tax: This is the tax amount that your government collects.
- Local Income Tax: This is the local tax assembled by your government which is required in some cities or countries.
- Social Security: This money goes towards your social security taxes, which is the best choice when you retire.
- Medicare: This amount goes towards Medicare taxes, handy when a financial situation arises.
- Year-To-Date: This information showcases the total of your paychecks and other subtractions done so far in a calendar year.
You will find your name, address, pay period, company address, and even social security number. These two abbreviations you will likely to see in the header abbreviation:
- Check No.: Check Number
- SSN: Social Security Number
PayCheck Stub Abbreviation for Earnings:
This is the part you will be primarily concerned about, as it shows the money you’re receiving. Below mentioned is a typical checklist of paycheck stub abbreviations:
- Add Pay: Additional Pay
- BRVMT: Bereavement Pay
- Cmp Pyot: Compensatory time payout
- CNT Pay: Contract Pay
- Hol: Holiday Pay
- Jury: Jury duty Pay
- Misc: Miscellaneous Pay
- Move Rem: Move Reimbursement
- OnCall: On-call Pay
- PTO: Paid time off
- Sick: Sick pay
- SignOn: Sign-on bonus pay
- Severance: Severance pay
- Tui Reimb: Tuition Reimbursement
- Vac: Vacation pay
- YTD: Year-to-date earnings
PayCheck Stub Abbreviations for Deduction
Deductions are the paycheck things you will be primarily familiar with as they take away most of your earnings. The deducted amount includes taxes, insurance premiums, benefit costs, and contributions to a retirement plan.
Here are the most basic standard paycheck stubs abbreviations, which include taxes deductions:
- FICA- Med: This is the Federal Insurance Contributions Act- Medicare which you contribute 1.45% of your earning.
- FICA-SS: This is the Federal Insurance Contributions Act- Social Security which you contribute to mandatory social security payments.
- Fed/FWT/FIT/FITW: Federal Tax Withholding.
- St Tax/SWT/SIT/SITW: State Tax Withholding.
- Local Tax: Local Tax Withholding.
Apart from these deductions, before-tax deductions appear on your pay stubs. Here are the most basic common paycheck stubs abbreviations that deal with before-taxes deductions:
- 401k/Retirement: 401k or Retirement Withholding
- DCR: Dependent Care Reimbursement
- Den/Dental: Dental Premium
- INS/MED: Insurance, Medical Insurance
- FSA: Flexible Spending Account
- HCR: Healthcare reimbursement
- HSA: Health savings account
- LTD: Long-term disability withholding
- STD: Short-term disability withholding
- VIS/Vision: Vision Insurance Premium
Here are the most basic common paycheck stubs abbreviations that deal with after-taxes deductions:
- Bankruptcy: Bankruptcy
- CHD SU: Child support
- Garn: Garnishment flat rate
- Garn %: Garnishment percentage
- StdnLoan: Student Loan
- TX Levy: Tax levy
- IRS Levy: Internal Revenue Service levy
Why is it Important to Understand Salary Deductions?
Every paystub have a year-to-date column for each withholding section allowing you to track how much you have paid in taxes, Social Security, and Medicare in a year. Many employers include an equal list of contributions, retirement plans, and health insurance policies.
Being able to read your paycheck stubs confidently is a skill everyone must possess. If you acquire this skill, you will be able to understand where your earning is going & precisely what you’re receiving.