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Pay Day! Where is My Money Going?

Author: Isaac Ehlers | Image: Isaac Ehlers

It is Friday, which also means PAY DAY, and everyone is waiting on their bank account to reflect that!   However, sometimes what we are expecting is way less, why is that?  Today I’ll explain where our money is going.

Let’s review our mock paystub!

  1. Pay Period
    • Here you can view the listed dates from when payment started and ended


  1. Company Information
    • This section is primarily to determine where this paystub comes from if you have multiple employers.


  1. Employee Information
    • This section stated your name, social security number, and typically your tax filing status


  1. Pre-Taxed Income Earned
    • This lists the types of wages you earned in the pay period, most common are:
      1. Normal Wages- You typical work day hours
      2. Overtime- Work spent outside your typical work hours, for most people this is paid more than normal wages
  • Paid Time Off – If paid, PTO (Paid Time Off) is also listed as a type of income. This could include vacation time off or sick leave.


  1. Deductions / Taxes
  1. State: Varies from state to state, depends on there the income is earned!
  2. Other taxes also exist, such as:
    • Insurance
    • Retirement Saving Plans; 401(k), Traditional IRA
    • Flexible Saving Accounts (FSA)
    • Health Savings Accounts (HAS)
  3. Post Tax Income
    • This is also known as ‘Take Home Pay’ or ‘Net Pay’, as this is what you get out of your work for the pay period after taxes are deducted


  1. Year-to-Date Gross
    • This is your TOTAL income earned throughout the year, prior to taxes, up to this date of the paystub


  1. Year-to-Date Deductions/Taxes
    • This is the TOTAL deductions/taxes that are taken/withheld from your gross income earned throughout the year, up to this date of the paystub


  1. Year-to-Date Net Pay
    • This is your TOTAL ‘Take Home Pay’ throughout the year, post taxes, up to this date of the paystub