5 Mandatory Deductions from Pay Stubs Decoded

single_blog_image

5 Mandatory Deductions from Pay Stubs Decoded

While you make Online Pay Stubs, you must be aware of each and every single thing which is reflected on your paycheck. This blog is all about the right section i.e deductions appearing on your real check stubs.

If you are an employee who is receiving paychecks regularly, then don’t just let it sit in your mailbox. Learn how to decode it as it is an important document.

Related Read: 7 Things Every Employee Should Know

Let’s have a look at the mandatory deductions which are made from your pay. You just have to know what they are and why there are taken as deductions. You don’t have to get into the calculations as they will be done by the free paycheck stub calculator online.

Deductions from Paycheck Stubs

Check out the deductions from paycheck stubs individually here:

FICA Med Tax

If you are thinking that you are being paid less than promised then you should know that the Federal Insurance Contributions Act (FICA) has a share in your pay. A fixed percentage of amounts is deducted from your payroll and is contributed to the Medicare Program. The amounts thus deducted are then utilized to run the program for those aged 65 years or older. So when you see your free check stubs showing this amount, this will strike you.

FICA Social Security Tax

As per the laws, every employee is obligated to contribute to the Social Security Program. Many beneficiaries including people with disabilities and retirees rely on the Social Security Tax. This tax can only be claimed when you reach your retirement age which is reportedly 67 for millennials.

State Tax

Depending on the state you work in, you will see State Tax column reflecting on the deduction side. It is also possible that you don’t see this tax mentioned specifically when you generate free pay stubs and this is just because your state does not require it.

For instance, Texas, Nevada, Alaska, Florida, and Washington are US States which does not require its employees to pay income tax.

Federal Tax

Besides FICA Medical Tax and Social Security Tax, employees are also required to pay Federal Tax as mandatory. This amount differs according to the number of allowances and tax rate. Your retirement contributions and pre-tax expenses on health insurance and more employee benefits are also taken into consideration for calculating the federal tax.

State Disability Insurance

All the Californian employees are bound to have this deduction in their paycheck. Having covered by SDI, you are benefitted through Paid Family Leave (PFL) & Disability Insurance (DI). You are eligible to receive a percentage of your salary while taking a family or disability leave.

Miscellaneous Deductions

When you make free pay stubs, it will also show other deductions which includes retirement, cafeteria plan and health insurance which are signed-up by you. These miscellaneous items are taken into account before your taxes and your taxable income can be reduced if you have signed up for them.

Hoping that you have understood the basics, it’s a great time to create free printable pay stubs now!

Related Posts

A paystub maker is your go-to tool whenever you want..

Read More

You can create wonders with free check stubs. This tool..

Read More

COVID-19 pandemic situation left us with unprecedented conditions. Companies with..

Read More

Latest Post

Five Things to Keep in Mind When Using the Federal...

Advance Pay Stub GeneratorCheck Stub Makerfree check stub maker with calculatorOnlinePayStubPay stub

Apr 4th, 2022

How to Write Better Paystubs in California

OnlinePayStubPay stubPaystub Generator for self Employed

Mar 29th, 2022

7 Different Methods to Create or Print Paystubs Easily

free check stub maker with calculatorFree Check StubsFree Paystub GeneratorFree Paystub MakerOnlinePayStubPay stubUncategorized

Mar 17th, 2022

Online Paystub – How it will change the workplace in...

Check Stub MakerOnlinePayStubPay stub

Mar 10th, 2022

File your taxes easily with a most recent pay stub

free check stub maker with calculatorFree Check StubsFree Paystub GeneratorFree Paystub MakerOnlinePayStubPay stubUncategorized

Jan 17th, 2022

Do you want to know What basically is a paycheck...

Check Stub MakerOnlinePayStubPaystub Generator for self Employed

Dec 28th, 2021

Check Stub Security with online paystub maker

Free Check StubsFree Paystub GeneratorFree Paystub MakerOnlinePayStubPay stub

Dec 14th, 2021

Salary vs Hourly Paystub in detail

Advance Pay Stub GeneratorFree Check StubsFree Paystub GeneratorFree Paystub MakerOnlinePayStubPay stubUncategorized

Nov 27th, 2021

How to Implement Remote Payroll Services Successfully

Advance Check Stub MakerAdvance Pay Stub GeneratorFree Check StubsFree Paystub GeneratorFree Paystub MakerOnlinePayStub

Nov 16th, 2021

Pay Stubs Are Necessary for Your Small Business

Advance Check Stub MakerAdvance Pay Stub GeneratorCheck Stub Makerfree check stub maker with calculatorFree Paystub MakerOnlinePayStub

Nov 12th, 2021