"Turning Financial Literacy into Financial Freedom"
The Role of Deductions and Withholdings in Your Paycheck Deductions and withholdings are integral components of an employee’s paycheck, serving to allocate funds for various purposes before the net pay is issued. These amounts are deducted from gross wages and reflect both mandatory and voluntary contributions. Their primary role is to ensure that necessary taxes […]
Understanding the Overview of a Pay Stub A pay stub, also known as a paycheck stub or pay slip, provides a detailed overview of an employee’s earnings and deductions for a specific pay period. It serves as a crucial document to understand one’s compensation and financial obligations. Typically, a pay stub is divided into sections […]
Understanding the Difference Between Gross Income and Net Income Gross income refers to the total earnings an individual receives before any deductions or taxes are applied. It includes wages, salaries, bonuses, and other earning sources. Understanding gross income is fundamental for assessing overall earning potential. Net income, on the other hand, is the amount remaining […]
Components that Make Up Your Paycheck The components that make up your paycheck encompass various elements that reflect your earnings and deductions. Typically, gross pay constitutes the total amount earned before any deductions. It includes your regular wages or salary, calculated based on hours worked or a fixed annual amount. Additional earnings such as overtime, […]