Ah, it is the end of the week and you just received your paycheck. It is the day that everyone unanimously loves. Have you ever looked at your pay stubs and wondered what the heck those deductions even mean? Understanding your paycheck is important, so you have come to the right place!
Required Deductions:Â These are the deductions that every single person working in the United States must pay.
- Federal, state, and local taxes: Varies on where you live and your W-4 information.
- Medicare: Provides health insurance for Americans over 65 years old.
- Social Security Tax: Provides benefits for seniors and the disabled.
- State Disability Insurance: Not collected in every state; provides benefits for workers who can’t work due to injury or other disability
- State Unemployment Insurance: Varies between states; funds unemployment benefits
Other Deductions:Â These are deductions that are optional.
- Health insurance: Medical, dental and vision insurance.
- Retirement Benefits & 401(k): Allows you to save retirement money, tax free, through your employer.
- Life Insurance: Provides benefits to your family upon your death.
- Disability Insurance: There are short-term and long-term disability programs. Each provides benefits to you if you experience injury or illness.
- Additional deductions include Healthcare Saving Accounts, stock plans and commuter benefits.
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If you ever have a question regarding your paycheck, be sure to contact your Human Resources Representative. They will be happy to help you, and correct any discrepancies if needed. If your paycheck isn’t cutting it anymore, and you’d like to begin searching for a new opportunity, learn more about our registration process and how McCallion Staffing can help.Â
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