How to Balance Withholdings on Paychecks
- 1). Get a copy of your most recent paystub from your employer or download one from the company Intranet if you have online access. Locate the amount of your gross pay.
- 2). Create a spreadsheet you can use to list each deduction and tax withholding amount shown on the pay stub. If you do not have a spreadsheet, you can use a blank sheet of tablet paper instead.
- 3). Separate the spreadsheet or paper into three columns. List the gross pay shown on your pay stub in the first column.
- 4). Enter a description for each withholding amount shown in the required withholding section of the pay stub. Enter the descriptions and amounts in the second column on your spreadsheet or paper. The required taxes withheld from your paycheck include Federal Income tax, Social Security and Medicare. You may also see deductions for state and local taxes.
- 5). Add the amounts of all the required withholdings from the second column of your spreadsheet. Subtract that amount from the gross pay shown in the first column.
- 6). Enter the amounts for your optional withholdings in the third column on the spreadsheet or paper. Enter a description beside each amount. Optional withholdings include things like your 401k contribution, employee stock purchase plan, additional life insurance and health insurance.
- 7). Add the amounts in column three and subtract them from the subtotal calculated in Step 5. This figure should match the amount of your net pay. Contact your human resources department if you find any discrepancies.
