A pay stub is a valuable source of information when building financial models and evaluating cash flow. It provides insight into income, tax, retirement savings, various insurance costs, etc. A periodic paycheck review can be a productive exercise, demonstrating how your earnings translate into net pay.
This flowchart helps lead you through a series of considerations when reviewing your paycheck. It covers:
- Hours worked and vacation time
- Tax withholdings
- Voluntary payroll deductions
- Pre-tax vs. after-tax expenses
- Employer-paid benefits
