As a payroll company, we're obviously experts on paychecks. One day we started having a debate about how much we knew - or didn't know - about our paychecks before we started working in the payroll industry. So we decided to do some research to learn what the average person knows what goes in and out of their paychecks.
We created a survey and then shared it on Facebook. We even paid a couple bucks to have Facebook promote it for us so it would reach more people. We got a lot of really great responses.
Our questions and the answers are outlined below...
It seems like people are either very confident about what they know or have no idea. So we asked what exactly comes out of your paycheck every week? We got various answers but most seem to know about Federal Income Tax, Healthcare Plans, and State Income tax. Maybe because these require form to be filled out when you're hired, so these deductions are in the front of our brains. But where do these taxes actually go!? This is where people seem to get stuck. Paychecks are trickier than they appear and it is important to know where your money is going.
Some people knew all the specifics...
"Lists the gross/net amt, shows any personal or vacation time, shows YTD totals of deductions including taxes"
Others, not so much...
"Not much at all"
"It's too small"
Although more people are going to direct deposit/ paperless you should still review your paycheck every week for accuracy. Now with all the knowledge of what taxes and deductions should be taken out you can be sure that you're getting paid the correct amount and that your deductions are correct. You should also keep your paystubs filed for a year to verify accuracy on your W-2 during tax season.
Everyone shared what tax bracket they thought they're in. But - interestingly enough - only 38% of people surveyed were confident in their answer.
Click here to take the survey (it's anonymous). We'll include your data when we decide to update our findings!