There’s no way to get access to capital in the U.S. without proving you can repay the debt. One of the most common ways to do this is to show how much money you make.
But you might be asking, how do I look up My Pay Stubs? Here’s a quick guide to understanding the best methods of managing your pay stubs.
My Pay Stubs
Your pay stubs are the holy grail of income verification. You need check stubs for just about any loan application and some credit cards.
Income verification puts you in the driver’s seat of negotiation when you’re looking to buy a new car at certain dealerships. It’s important to know where you stand financially so you fully understand your buying power.
Your pay stubs also have other key information that helps you plan for your future. Take a look at these key parts of a pay stub.
Gross Pay
This is the amount you receive before any taxes are taken out. Believe it or not, gross pay is a major consideration for many lenders.
They’re not worried about your take-home pay because these numbers could change based on your circumstances. Things like having a child or getting married could influence the amount of money you take home.
But your gross pay tells a different story. It reveals your level in your career. Different tax brackets reveal different future financial paths for employees.
For example, if your gross pay is $90,000, it’s not likely you’ll end up making $60,000 the following year. But someone at a lower tax bracket could easily move up or down by $10,000 if they’re an hourly employee.
Federal Taxes
Your pay stubs show the amount of federal taxes withheld each pay period. This is a big deal in making sure you qualify for social security payments if you’re part-time.
You’ll need a minimum number of hours and money paid to social security in order to qualify for this retirement benefit. The amount you pay in federal taxes is based on your tax bracket.
The lowest amount you can pay is 10 percent of your gross pay and the highest amount is 37 percent.
State Taxes
Each state sets its own personal income tax rates. There are even a few states where income tax isn’t collected at all.
But in most cases, you’ll pay income taxes in the state you work in. That means that if you travel across state lines to earn income, you’ll need to pay income taxes in that state, too.
Local Taxes
In rare situations, you’ll pay taxes to your local government. One key example of this is in New York City.
Because government services are so expensive, residents pay additional taxes to live there.
How Can I Get My Pay Stubs Online?
If you’re asking where can I check My Pay Stubs online, you’ll need to consult with your employer. Many employers allow you to gain access to W-2s and paystubs online.
You set up an account with their payroll software and receive notifications when new pay stubs are available. For more information and tips, visit our blog for updates.
