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  • Stubbuilder
  • Mar 29, 2024

Understanding Your Paycheck Stub Abbreviations

Good news, you have received your monthly paycheck stub and now you are thinking about what all of the abbreviations mean? So it’s your lucky day as in this blog we have put together all the paycheck abbreviations under one roof.

Why Do I Need To Learn My Paycheck Stub Abbreviations?

There are several reasons why understanding the paycheck abbreviation is of such vital importance. Below mentioned are some of the vital abbreviations:

  • Understand Your Deductions: Basic pay stub deductions codes showcase taxes and contributions to different insurance programs. Learning about the abbreviations on your pay stub will help you figure out how these deductions affect your monthly income. This helps you in seeing how these deductions affect your monthly income.
  • Check for Errors: It is uncommon for employers and payroll systems to withhold the incorrect amount from pay stubs. You will be able to notice these irregularities if you understand what these abbreviations mean.

Errors include the following:

  • Amount of taxes paid
  • Unpaid overtime
  • Inaccurate benefit
  • As a Proof of Income , Use Paystub: Paystubs is the basic way to present a proof of income in case you want to:
  • Get a credit card
  • Apply for a loan
  • Get approval for a lease

Guide On Paycheck Stub Abbreviations

Most Common Paycheck Stub Abbreviations are:

  • Gross Pay: This is the full salary or hourly wages pre-tax deductions.
  • Net Pay: This denotes how much of your salary you will take home after all of your deductions have been deducted.
  • Federal Tax Amount: This amount denotes how much federal tax you will need to pay to the (IRS) Internal Revenue Service each month.
  • State Income Tax: This state-specific is not all the states have income-related taxes. State taxes are calculated through a percentage based on your income after the deductions. These taxes include the following:
  • Healthcare
  • Garbage collection
  • Infrastructure
  • Local Tax: This denotes the amount of taxes you will pay to your local government. It is a requirement for some cities, countries. Local taxes are helping fund public service like:
  • Police and Fire Departments
  • Libraries
  • Road Maintenance
  • Social Security: Social Security is a system of retirement, disability support programs which is set up by the U.S. government. It acts as a form of financial insurance if something happens to you that results in you being unable to work.
  • Medicare: Medicare is a U.S. government program that provides medical benefits to Americans aged 65 and older. This includes hospitals and surgical benefits. The law requires working Americans to contribute at least 1.45% of their gross income to the Medicare program.
  • (YTD) Year-To-Date: YTD can be broken down into two categories: To indicate the employee’s full income and Contributions during the year. This includes the following:
  • YTD Gross: YTD gross is the total income that the employee has earned during the year before any deductions are subtracted.
  • YTD Net: YTD net is the total amount paid to the employee after the deductions are made. In this scenario it is vital for the employees to make sure that their deductions are aligned and accurate, 

 

Header Abbreviations and The Codes

  • Social Security Number (SSN): This is a government issued number which is used to report the wages to the IRS. You can also use your SSN to track your eligibility for Social Security benefits. You will be needing this number to grab your hands on employment, file taxes and receive medical care.
  • Check No.: Employers use this number to identify and monitor each paycheck for their firm’s accounting records.
  • (EIN) Employer Identification Number: The EIN is a number assigned to a business by the U.S. government and the IRS. It also helps the IRS in identifying the tax returns and employers.

Earnings Abbreviations

With Sub Builder, you can customize your paystub by adding any custom earnings such as BRVM or PTO to your paycheck. All you need to do is select additional earnings while generating pay stub, and then adding the description and its rates.

  • Gross Pay: This is your whole salary before deductions are cleared.
  • Net Pay: This amount showcases what you will take home after taxes and deductions are subtracted.
  • HR: This indicates Hourly Rate. Your employer is required by law to pay their workers their hourly wages which is shown on the pay stub.
  • OT: This indicates overtime pay. This indicates work done past an employee’s fixed working hours.
  • Add Earnings: This section showcases additional earnings. Additional pay includes the following:
  • Overtime
  • Paid time off
  • Wellness bonus
  • Tips
  • Stipend for expenses

 

  • BRVMT: This means bereavement pay. It is defined as compensation an employee receives when they take off work after an employee’s family member has passed away.
  • CMP Pyot: This term showcases compensatory time payouts. It is used when the employers provide the workers with a paid time off balance any hours the employees worked beyond the regular schedule.
  • Hol\PTO: This showcases paid time off or holiday leave which is used to indicate that you have earned wages when you are on a vacation. Hol can also be considered as if you have worked on a day most employees get off. 
  • Jury: This abbreviation means compensation received for attending a jury duty and will be included when your taxable income is calculated.
  • Move Rem: This abbreviation means move reimbursements. It is used to compensate the employees who are legal to move to a new place of residence due to the firm’s transfer.
  • On-Call: On-call pay is the compensation which you receive after working outside the regular working hours. On-call payments are used in unprecedented shift-based industries like:

 

  • Health care professionals
  • Repair workers 
  • IT technicians

 

  • Sign-On: This abbreviation means a sign-on bonus pay. This is the additional compensation for a new employee when they accept a job. This can be a lump sum amount of money which shall be paid over time.

Conclusion

If you are on the lookout for real pay stubs then you should check out Stubbuilder which is an easy to use tool.