More than 80 percent of U.S. employees have their paychecks directly deposited into a bank account and never lay eyes on the paystub.
But out of sight should not mean out of mind when it comes to monitoring take home pay.
There are a variety of reasons an employee should conduct a paycheck checkup on a routine basis, including making sure a raise or backpay 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. Even the Internal Revenue Service (IRS) notes the importance, devoting a week in late March to “Paycheck Checkup Week” in advance of the April 15 tax deadline.
With the change in federal tax law in 2018, more people were encouraged to review paystubs 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.
If you have addition questions, contact us at IPS.