Have You Checked Your Pay Stub Lately? (05-09-16)
While there are some employees who still receive a hard copy payroll check, the majority receive their payroll checks via direct deposit. This can be an extremely efficient and cost effective way to pay employees, regardless of the size of your company. For many companies, it is a requirement for employees to be paid in this manner.
So what is the problem?
The problem is that a majority of people simply rely on the amount posted into their bank account and never go through the online process of actually looking at the backup to the amount. Assuming something as important as your paycheck is correct could cost you dearly.
The list below is just a few things that could go wrong if your pay stub is left unchecked.
Everyone fills out a W-4 withholding form in order to receive payment. Your choice does not have to be the same forever. You can complete an updated one at any time. We advise clients to complete a new form every year or as their personal and financial situations change.
Regular Hours and Overtime Hours
If you are paid an hourly wage and work overtime hours, checking your pay stub is a must! Mistakes aren’t intentional but they do happen.
Sometimes companies add a bonus to your paycheck or write you a separate check for a bonus. The taxes withheld from a bonus might be the same as your W-4 request or they could be a flat percentage.
If the amount of your garnishment changes, for example child support,then it is your responsibility to let your Human Resources know. The result of not following through with a change like this could cause you to be underpaid or overpaid in your obligation, neither of which is good for you.
You signed up for your company health insurance or supplemental coverage. Check those deductions against what you believe they should be and question them if you don’t understand.
Did you get a promotion or salary increase during your last review? Be sure to verify that the increase you were told you would receive made its way to your check. Which brings us back to #1. Did the pay increase change your financial situation to the point where you would need to update your W-4?
While some of these points may seem like a no brainer, the fact is that people don’t check their pay stubs often enough. One father was several thousand dollars ahead in his child support. If he had not found it when he did, he wouldn’t have been repaid. Another man has to verify his hours on every check due to overtime calculations. A woman didn’t notice that her insurance premiums were not being deducted. She found out she had no insurance when she went for treatment. Chances are you are being paid properly. However, isn’t it worth a few minutes of your time each pay period to make sure?
If you have any questions about your pay stubs, please Contact Us today.