Did you know that more than 80 percent of U.S. employees have their paychecks directly deposited into a bank account and never lay eyes on the pay stub?
But out of sight should not mean out of mind when it comes to monitoring your take home pay.
There are a number of reasons an employee should conduct a paycheck checkup on a routine basis, including making sure a raise or back pay is received as promised. By the time a W-2 arrives with a record of annual taxable income in January, it’s too late to consider any corrections.
At IPS, we recommend and regularly remind our clients to tell their employees to review their paychecks. Remember when there was a change in federal tax law in 2018? People were encouraged to review pay stubs to determine if the correct amount of taxes was being withheld. The message is clear – the earlier people conduct a paycheck checkup, the more time available for withholding to take place at an even rate during the year.
So how should you get employees started with a paycheck checkup? Offer them IRS links to the withholding calculator and how to fill out and refile a W-4 form if taxes need to be adjusted.
If you have addition questions, contact us at IPS.