We all know when we get our pay stub that a healthy portion of our gross pay does not end up in our bank account – some of it is diverted to things like Social Security, Medicare, Federal taxes and sometimes state taxes. Hopefully some of it is diverted for a rainy day – like your 401k or your benefits.  By breaking down what’s on your pay stub you will see where your money is going and learn more about where your pre-tax savings opportunities may be.  So please take a moment to Check your Stub.  Is everything you signed up for at Open Enrollment being deducted? Is your 401K contribution correct?   

On your pay stub you may find the following abbreviations –  not everyone has all of them.

GOVERNMENT’S CUT

  1. FWH – Federal Withholding – the Fed’s cut –includes taxes, Social Security and Medicare as a total
  2. SOC – Federal Insurance Contributions Act(FICA) – your contribution to Social Security 
  3. MED – your Medicare contribution 
  4. MEDADD – Medicare additional tax
  5. SWH – State Withholding - some may have a state tax which will be indicated by the state’s abbreviation i.e. MO SWH
  6. CITY – some cities have a tax as well – you must be very lucky indeed to live in one of these cities 

SAVINGS

  1. 401K – how much $$ you are socking away for retirement – Pre-tax
  2. 401K-Ro – how much $$ you are socking away for retirement – Post-tax
  3. 401K-LN – if you have a 401K loan out this is where you see the payments listed – Post-tax

BENEFITS

  1. INS – employee premium for the health insurance program – Pre-tax
  2. HSAINS – employee premium for the HSA health insurance program – Pre-tax 
  3. HSABANK – your contribution to your Health Savings Account – you set the amount based on your needs – Pre-tax
  4. DENTAL – weekly premium of dental insurance – Pre-tax
  5. VISION – weekly premium of vision insurance – Pre-tax

SUPPLEMENTAL BENEFITS

  1. ACCID – premium for Accident insurance – Pre-tax
  2. CR.ILL – premium for Critical Illness insurance – Post-tax
  3. VOL LF – Voluntary Life insurance for yourself, spouse and/or children – Post-tax
  4. STD – Short Term Disability insurance – Post-tax

YOUR MONEY!!

  1. NETDEP – net deposit – what is left goes into your account . . . . 


Please let us know if you find an issue – other than the Government gets too much . . . . . we all have that issue.