Personal Resource Center

How to Understand Your Paycheck

Tips to understand your paycheck, exemptions, deductions, and more.
Scale icon
Did you know? Exemptions allow you to adjust how much money the government withholds from your paycheck for taxes.

The importance of reviewing your paycheck

At the end of the day, you're probably mostly concerned with just the bottom line. But you should review pay stubs every pay period to make sure there aren't any errors. The wrong number of allowances could mean you'll have too much — or too little — withheld for taxes, and an incorrect 401(k) contribution could mean missing out on extra money every time you get paid.

And, in our digital world, make sure you've signed up for direct deposit with your employer. Direct deposit removes the hassle of receiving a paper check and allows you to instantly get your money deposited into your checking account on payday.

If you'd like other tips on managing your finances, don't miss these articles on budgeting tips to help you save money and checking accounts.

Important disclosure information

  1. TurboTax, “What Is a W-4 Form?" Turbo Tax, updated January 27, 2024, accessed May 14, 2024 Back
  2. H&R Block, "States With No Income Tax," accessed May 14, 2024. Back
  3. Social Security Administration, "Fact Sheet: 2024 Social Security Changes," accessed May 14, 2024. Back