Pay stub explained
Training 525 minutespay stub explained
You are 24 and work in a warehouse. Your contract says $2,500, but only $1,950 lands in your account. You have no idea where $550 goes.
Training goal: Understand every line of your pay
▶ Play this trainingSituation
1. You open your pay stub. At the top: "Gross pay $2,500". At the bottom: "Net pay $1,950".
- Decide the employer is cheating
- Budget from $2,500
- Budget from $1,950 and study the deductions
2. The lines read: income tax $375, pension contribution $125, health insurance $50.
- Count all deductions as lost money
- Check each line is right and where it goes
- Ask to be paid cash without deductions
3. The overtime line shows 4 hours, but your records show 12.
- Stay quiet to avoid trouble
- Email payroll with your time records
- Complain in the team chat
4. There is a "Year to date" column at the bottom. Why does it matter?
- Save every stub in a folder each month
- Throw them away, the employer keeps copies
- Look only at net pay
What you will learn
- Gross pay minus deductions equals net pay. Budget from net.
- Tax, pension and insurance: every line has a purpose.
- Check hours and overtime monthly and keep your stubs.
Your real-life step
Take your latest pay stub and write down every deduction. Check the hours against your own records.
Questions and answers
What is a pay stub?
A record of one pay period: earnings, deductions, taxes and the amount paid to you.
What is the difference between gross and net pay?
Gross is the amount before deductions. Net is what reaches your account after taxes and contributions.
What should I do if my pay stub is wrong?
Write to payroll with proof: time records, contract, messages. Keep the reply in writing.
More trainings in this module
Numbers are illustrative. A game, not financial advice.