Divorce Rich Snack: Decoding Payroll Stubs: Your Divorce Money Detective Guide
Understanding payroll stubs is a crucial yet often overlooked skill during divorce proceedings. Jacki breaks down how to read both your and your spouse's payroll documentation to ensure you're getting accurate financial information for support calculations and settlements.
• Difference between gross pay (what's earned before deductions) and net pay (what's deposited in your account)
• Federal and state tax withholdings and how to spot potential overwithholding
• Understanding Social Security withholding caps and their impact on paychecks throughout the year
• Health insurance, 401(k) and other deductions that affect net pay
• How to calculate reasonable federal tax withholding percentages
• Year-to-date totals and their importance in cross-checking against W-2 forms
• Box 5 on W-2 forms shows Medicare wages, often the best reflection of true gross earnings
• Importance of year-end payroll stubs for breaking down different income sources
• Four power tips: review all stubs, keep copies of everything, look beyond take-home pay, and learn the payroll system
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