Every working American receives a paycheck, and you probably don’t give it much thought before depositing it into your bank account. In fact, you might not even think about depositing it thanks to direct deposit. However, it’s important to check your paycheck and make sure your employer is withholding the right taxes every time. While you might be thinking, “Nothing ever changes, and my paycheck stays the same, so I don’t need to check it,” you should think about all the life changes that could potentially alter your check.
Life changes that affect your paycheck:
- Having a baby
- Getting married
- Getting divorced
- Starting a new job
- Getting a bonus
- Moving to a different state or city
Isn’t this something my payroll department does?
Yes, but there are other variables. For example, if you are transferred to a different state for your job, and your Human Resources department does not notify your Payroll department quickly enough about your transfer, your taxes may be withheld incorrectly.
Modeling your paycheck can help you with more than just double-checking someone else’s work. You can be more prepared for things like getting married and having a baby by determining what your take-home pay will be post-life change. This allows you to accurately complete a budget, and be better prepared.
Ok, I get it. This is something I should do. How do I do it?
We recommend using the calculators found on paycheckcity.com. They’re the most accurate online paycheck calculators out there. We also have 9 different calculators to fit every situation – salary, hourly, bonus – we even allow you to compare two scenarios side-by-side!
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These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.