However, you might come across some uncommon terms and acronyms. Here are some of the general pay stub abbreviations that you will run into on any pay stub. The intention of this article is to provide general information about payroll abbreviations and how to understand your pay stub. Pay Stub Abbreviations are the abbreviations that you come across on any pay stub.
Let’s say an employee has questions about the taxes withheld from their salary, their insurance, and their retirement contributions. Or, a former employee requests copies of their last pay stubs. Since most payroll codes are universally used across startups and large companies, they are also instrumental in maintaining the accuracy of employee information on each pay stub released by employers. There is much to learn about payroll codes, from the different types of codes used by employers to understanding how to read the meaning of each.
Pay stub generators contain templates that often contain all the necessary fields in a regular pay stub, such as payroll codes. Earnings payroll codes are pay stub abbreviations that pertain to the employee’s job role and the pay period covered by a specific pay stub or payroll. An after-tax deduction is a payment automatically subtracted to an employee’s pay stub after the government withholds taxes. After-tax deductions include medical expenses, interests, and other losses to casualties. Written below are some abbreviations you might find on your pay stub.
Earning Abbreviations and Acronyms
Federal Unemployment Tax Act or taxes paid for by taxpayers to help generate funding for the government’s unemployment program. This code refers to Social Security taxes, which are 6.2% of the taxable income. Kristen Larson is a payroll specialist with over 10 years of experience in the field. She received her Bachelor’s degree in Business Administration from the University of adp payroll codes Minnesota. Kristen has dedicated her career to helping organizations effectively manage their payroll processes with Real Check Stubs. The header of your pay stub contains most of your basic information.
What types of payroll codes are commonly used?
The deductions will depend on the employer’s dental care plan of choice. The said code also encompasses all types of pay or compensation, whether they refer to the employee’s regular rates, paid time-off, or overtime pay. The above-listed pay stub abbreviations are generally used by most payroll companies. You may also be able find more resources in your employee handbooks or HR department. Pre-tax deductions are deductions that reduce your taxable income. They are deductions that are taken out from your income before the tax is calculated.
Employers and independent contractors can fill out these blank fields with the correct information and produce accurate and reliable paychecks. Student loans are deductions used to pay off education or school-related debts incurred by employees while finishing their course or degree. If any of the information on your paystub seems incorrect or you don’t understand, you can contact your payroll department and have them correct it or explain it to you. They vary slightly depending on your employer, payroll provider, and state. But if you know what’s coming out of your paycheck and why, it’s a lot less stressful.
Abbreviations for Pre-Tax vs. Post-Tax Deductions
- In this article will cover pay stubs abbreviations from all major payroll companies like ADP, QuickBooks, Paychex, Ariba, E-Verify and Paycom.
- Sometimes you might get confused after encountering unfamiliar terms on your paycheck.
- Most pre-tax deductions come in the form of retirement plan contributions, medical and dental benefits, and disability insurance.
- They vary slightly depending on your employer, payroll provider, and state.
After all, the codes generated for each payroll represent not only the total gross earnings of an employee but also the different taxes and deductions withheld from their income. Plenty of withholding tax abbreviations are present on your pay stub. These withholdings usually involve federal, state, and other added taxes. Sometimes you might get confused after encountering unfamiliar terms on your paycheck.
Other Common Abbreviations You Might See
The abbreviations tell you exactly what’s being deducted and what it’s for. Abbreviations on your pay stub are shorthand for earnings, taxes, and deductions. They’re meant to save space, but they often confuse people. If you use a provider like ADP, these codes can get even more cryptic. But each one tells you something important about your pay, deductions, and taxes. Organizations that need help managing payroll have several options available to them, ranging from basic payroll software to more comprehensive solutions, like payroll outsourcing and co-employment.
- You will frequently find earning-related abbreviations throughout your pay stub.
- For instance, if an employee uses up a portion of their sick pay or decides to contribute to their employer’s life insurance premiums, then they will know which codes to look for in their paycheck.
- If you’re interested in creating your own pay stubs, check out our templates here.
- It doesn’t just contain your wages and hours but also breaks down more information about how you earned your pay and enumerates the reasons why you may have deductions from your wages.
We’ve run through the most commonly used payroll codes which may appear on your pay stub. Having a working knowledge of these codes enables you to better interrogate your payroll documentation, giving you better insight into how your pay in your pocket is calculated. There are some other codes that you might see on your pay stub which refer to deductions that occur at the post-tax stage. These are generally codes for penalties incurred for things like child support and bankruptcy. Here are some of the codes you’re most likely to come across.
Income Pay Stub Abbreviations
Therefore, after tax deductions don’t affect your tax amounts. Freelancers, gig workers, and small business owners usually handle payroll themselves or review what clients send over. If you know the terms on a pay stub, it’s easier to spot mistakes and keep everything accurate. It is worth noting that generating payroll codes is quite easy, and it does not require purchasing and using an expensive payroll system. State Unemployment Insurance changes annually and also varies by state. It is important that employees check with their state government’s tax rules and regulations on SUI and other mandatory salary deductions.
Pay Stub Abbreviations from All Major Payroll Companies
It typically takes up 1–2% of an employee’s gross earnings. The values under the MED/INS payroll code pertain to employee contributions for their medical insurance premiums. The different payroll codes also vary based on how and when they are used in an employee’s pay stub.
These break down into a few different areas, which we’ll cover in more detail below. It’s important to have visibility on your earnings for a number of reasons. For one thing, it’s essential for when you are compiling your tax return, and a basic understanding of how your pay stub works makes that process a lot easier. For another, it’s extremely useful to be pay -stub-literate in any dispute over pay with your employer, as you are able to drill down into your earnings much quicker if you know what you’re looking for. It’s also handy for budgeting, as you can see where your deductions are going, for example into your 401K, and any of your other payroll-deducted savings or payments to employee benefits.
