💰 What Gets Deducted?
When you get your first paycheck, you might be surprised - it's less than your hourly wage! That's because taxes and other deductions are taken out. Federal income tax, state tax (in some states), Social Security, and Medicare are common deductions.
- •Gross pay: Your total earnings before deductions
- •Net pay: What you actually take home (after deductions)
- •Taxes: Money that goes to government services
📄 Reading Your Pay Stub
Your pay stub shows your gross pay, all deductions, and your net pay. It also shows year-to-date totals. Understanding your pay stub helps you know exactly where your money is going and plan your budget accordingly.
- •Keep your pay stubs for tax filing
- •Check that deductions are correct
- •Use net pay (not gross) when budgeting