Understanding Your Paycheck Withholding
Your pay stub breaks down your gross earnings into statutory taxes and elective deductions. Pre-tax contributions to retirement plans (such as traditional 401k or 403b) and healthcare savings accounts (HSA) reduce your gross pay subject to federal and state income tax withholding, immediately lowering your tax bill.
Frequently Asked Questions
What is the difference between bi-weekly and semi-monthly pay?
Bi-weekly pay occurs every two weeks on a specific weekday (26 pay periods per year), resulting in two months per year with three paychecks. Semi-monthly pay occurs twice per month on specific dates (24 pay periods per year).