Pay Stub Abbreviations from All Major Payroll Companies

The deductions will depend on the employer’s dental care plan of choice. The said code also encompasses all types of pay or compensation, whether they refer to the employee’s regular rates, paid time-off, or overtime pay. The above-listed pay stub abbreviations are generally used by most payroll companies. You may also be able find more resources in your employee handbooks or HR department. Pre-tax deductions are deductions that reduce your taxable income. They are deductions that are taken out from your income before the tax is calculated.

Common frequently asked payroll questions (and answers)

We’ve run through the most commonly used payroll codes which may appear on your pay stub. Having a working knowledge of these codes enables you to better interrogate your payroll documentation, giving you better insight into how your pay in your pocket is calculated. There are some other codes that you might see on your pay stub which refer to deductions that occur at the post-tax stage. These are generally codes for penalties incurred for things like child support and bankruptcy. Here are some of the codes you’re most likely to come across.

Pay stub generators contain templates that often contain all the necessary fields in a regular pay stub, such as payroll codes. Earnings payroll codes are pay stub abbreviations that pertain to the employee’s job role and the pay period covered by a specific pay stub or payroll. An after-tax deduction is a payment automatically subtracted to an employee’s pay stub after the government withholds taxes. After-tax deductions include medical expenses, interests, and other losses to casualties. Written below are some abbreviations you might find on your pay stub.

Pre-Tax Deduction Payroll Codes

Payroll companies abbreviate the information that is printed on your pay stub to reduce it and make it easier for them to fit a lot of information on a single sheet of paper. NET is what you actually take home after taxes and other deductions. But if you know how to read your stub, you can spot them fast.

What types of payroll codes are commonly used?

Employers and independent contractors can fill out these blank fields with the correct information and produce accurate and reliable paychecks. Student loans are deductions used to pay off education or school-related debts incurred by employees while finishing their course or degree. If any of the information on your paystub seems incorrect or you don’t understand, you can contact your payroll department and have them correct it or explain it to you. They vary slightly depending on your employer, payroll provider, and state. But if you know what’s coming out of your paycheck and why, it’s a lot less stressful.

• When setting up a new local code for payroll/tax processing, please notify your ADP representative to validate the accuracy of the local code.
• As well as what’s coming in, your pay stub also includes a wealth of information about where your pay gets deducted before it reaches your wallet.
• These codes show you where your pay is being deducted for tax purposes.
• If a payroll code appears on your pay stub that you don’t understand, check in with your company’s accounts department or your own accountant.
• Pay Stub Abbreviations are the abbreviations that you come across on any pay stub.

Bonuses, commissions, overtime pay and severance pay are just a few examples. The codes you can see on your pay stub are payroll codes. Your organization can create its own payroll codes for internal processes, but there are some common ones that you will see across pay stubs that are very important to understand.

However, you might come across some uncommon terms and acronyms. Here are some of the general pay stub abbreviations that you will run into on any pay stub. The intention of this article is to provide general information about payroll abbreviations and how to understand your pay stub. Pay Stub Abbreviations are the abbreviations that you come across on any pay stub.

After-Tax Deductions – Pay Stub Abbreviations

These break down into a few different areas, which we’ll cover in more detail below. It’s important to have visibility on your earnings for a number of reasons. For one thing, it’s essential for when you are compiling your tax return, and a basic understanding of how your pay stub works makes that process a lot easier. For another, it’s extremely useful to be pay -stub-literate in any dispute over pay with your employer, as you are able to drill down into your earnings much quicker if you know what you’re looking for. It’s also handy for budgeting, as you can see where your deductions are going, for example into your 401K, and any of your other payroll-deducted savings or payments to employee benefits.

Therefore, after tax deductions don’t affect your tax amounts. Freelancers, gig workers, and small business owners usually handle payroll themselves or review what clients send over. If you know the terms on a pay stub, it’s easier to spot mistakes and keep everything accurate. It is worth noting that generating payroll codes is quite easy, and it does not require purchasing and using an expensive payroll system. State Unemployment Insurance changes annually and also varies by state. It is important that employees check with their state government’s tax rules and regulations on SUI and other mandatory salary deductions.

Pretax deductions are generally employee contributions to employer-sponsored benefits, such as group health insurance, group term life insurance, some types of retirement savings plans, etc. They are advantageous because they lower an employee’s taxable income. Take note of the fact that payroll codes can also be generated by any organization to cover a wide range of deductions and earnings. If a payroll code appears on your pay stub that you don’t understand, check in with your company’s accounts department or your own accountant.

After all, the codes generated for each payroll represent not only the total gross earnings of an employee but also the different taxes and deductions withheld from their income. Plenty of withholding tax abbreviations are present on your pay stub. These withholdings usually involve federal, state, and other added taxes. Sometimes you might get confused after encountering unfamiliar terms on your paycheck.

Abbreviations for Pre-Tax vs. Post-Tax Deductions

The abbreviations tell you exactly what’s being deducted and what it’s for. Abbreviations on your pay stub are shorthand for earnings, taxes, and deductions. They’re meant to save space, but they often confuse people. If you use a provider like ADP, these codes can get even more cryptic. But each one tells you something important about your pay, deductions, and taxes. Organizations that need help managing payroll have several options available to them, ranging from basic payroll software to more comprehensive solutions, like payroll outsourcing and co-employment.

It typically takes up 1–2% of an employee’s gross earnings. The values under the MED/INS payroll code pertain to employee contributions for their medical insurance premiums. The different payroll codes also vary adp payroll codes based on how and when they are used in an employee’s pay stub.

• Here are some of the codes you’re most likely to come across.
• There is much to learn about payroll codes, from the different types of codes used by employers to understanding how to read the meaning of each.
• But if you know how to read your stub, you can spot them fast.
• A paycheck stub abbreviation is a term or a code written in a payroll.
• There are also alternative codes for state taxes, such as SIT (State Income Tax) or SWT (State Withholding Tax).
• It stands for pre-tax deductions meant to cover vision insurance premiums.

Let’s say an employee has questions about the taxes withheld from their salary, their insurance, and their retirement contributions. Or, a former employee requests copies of their last pay stubs. Since most payroll codes are universally used across startups and large companies, they are also instrumental in maintaining the accuracy of employee information on each pay stub released by employers. There is much to learn about payroll codes, from the different types of codes used by employers to understanding how to read the meaning of each.

Federal Unemployment Tax Act or taxes paid for by taxpayers to help generate funding for the government’s unemployment program. This code refers to Social Security taxes, which are 6.2% of the taxable income. Kristen Larson is a payroll specialist with over 10 years of experience in the field. She received her Bachelor’s degree in Business Administration from the University of Minnesota. Kristen has dedicated her career to helping organizations effectively manage their payroll processes with Real Check Stubs. The header of your pay stub contains most of your basic information.