A paycheck is a vitally important document. Your paycheck is not just a list of the money you’ve earned in any given time frame. It is also verification that your employer has paid into social security on your behalf. A paycheck is also an important tax document that you can use for multiple purposes including to open a bank account, apply for a loan and even rent an apartment. Making sure the paycheck contains accurate information is something every employee should do for every paycheck they get. Several items in particular should be checked carefully.
All Employee Retirement Contributions are Correctly Listed
Retirement is an important part of one’s working life. An adequate pension or other mechanism for retirement savings needs to be part your life plan. The type of retirement plan can greatly vary from person to person and company to company. Some companies offer employees a straight pension based on factors such as seniority. Other companies offer employees the opportunity to contribute to their retirement savings via a tax protected contribution. Make sure the amount listed on your paycheck is listed correctly. If you have a matching contribution, this should also be listed as well. Some companies list this separately while others include the entire contribution in a single number.
Any Overtime Hours are Correctly Listed and Compensated
Overtime regulations can vary widely from state to state. For example, if you live in California, any hours you work over eight in any given day are considered overtime. The same is not true in other places. Ohio overtime law states that overtime is only counted weekly not daily. Any employee should double check that the number of hours are listed correctly on his paycheck. The number of hours should include any fractions of an hour as well. Keep in mind any lunch breaks you may have taken during this time frame.
Your Job Title is Correctly Listed
If you have recently gotten a promotion, you need to make sure the new job title shows up on your paycheck as soon as possible. The extra pay may be listed but the new title may take some time. Contact payroll to notify them of this fact. If necessary, have your new supervisor contact them as well.
Your paycheck is not just the amount of money you earn. Your paycheck is contains a tremendous amount of important information about many aspects of your finances. Make sure it accurately reflects all aspects of your job.