What is Gross YTD? Here's What Everything on Your Paycheck Means

paychecks what is gross ytd paycheck year to date column

Pay stubs are often mysterious documents employees pretend to understand but really don’t. Terms like YTD, deductions, pre-tax, post-tax, and more of these are plenty to confuse someone who is unfamiliar with the terms.

Rather than nod your head and act like you know the answer to “what is gross YTD?”, why not let us explain it? Let's go over these terms and help you understand not just what you earn, but also what you take home.


Basic Paycheck Information

First, let’s start with the basic facts. Your name and your address get listed and allow you to use this document for income verification, if necessary. This is helpful when you’re trying to apply for housing, attempt to get a loan or trying to prove your identity.

Along with your name and address, they post the number of hours you worked with the dates of the current pay period. Some businesses pay their team members every week. Other companies distribute checks every other week. Still, other employees only get paid once a month.


What Is Gross YTD?

Gross pay is a term that describes the amount of pay you receive before they take any deductions out. For example, if you make $25.00 an hour, and work 40 hours per week, your gross pay is the product of $25 x 40 hours equaling $1,000.00. That is your gross pay for the week.

To understand Gross YTD, multiply your weekly gross pay times 52 weeks for the year. That product will be your Gross YTD and give you an annual number to work with. To continue with our example, the answer would be $1,000 gross pay each week times 52 weeks equaling $52,000 for the year.

This is often the number of agencies use to determine individual qualification for various programs involving housing, tax deductions, loan approval, and other procedures, despite having several deductions taken out of this amount.


Deductions From Your Earnings

Deductions are necessary, even though no one wants anything taken out of their paycheck generally. However, this is a classification used for retirement savings and court fees (if there's an order in place), as well as federal and state taxes.

Some deductions are mandatory but others are voluntary, especially retirement savings you signed up for. These benefits are sometimes provided by your employers and they may match your contribution. It helps to have benefits like this that allow you to prepare for the years you're not going to work.

If you don’t have a retirement plan through your employer, you might choose to divert part of your check into a savings account with a third party. This, however, will not show up on your pay stub since it's not originated by your employer. Either way, these deductions reduce the amount you take home to spend.

If you contribute to a retirement savings plan with your employer, you'll see a running tally of how much you’ve paid in throughout the year.

Data like this helps you plan ahead and determine if you want to increase this amount. If you’re not on track and you can afford to invest more from your check, you can make this choice effectively.


Vacation and Sick Pay Hours

If you’re able to earn vacation and sick time from your employer, this will also show up on your pay stub. You should be able to view exactly how many hours you earn each pay period and how many you currently have for the year.

If sick times accrues at a different rate than vacation hours, both of these numbers show up on the pay stub. There will be a total accumulation to calculate with. When you’re planning a vacation or setting up a doctor’s appointment, it's important to make sure you have the time available.

It can also help you manage the use of this time since some businesses only allow you to accrue so many hours before they stop adding up. Employees who work overtime hours can use this documentation to make sure they’re getting the right amount of time added into their accruals.

Otherwise, they might end up getting shorted time they’ve earned. Viewing this document every pay period helps everyone stay accountable and on track.


Resources to Understand Paystubs

Remember that you can also use online tools to understand your check stub. Use a YTD calculator to punch in your weekly numbers to simplify the process.

This will instantly let you know what to expect and give you the data you’ll need to file your taxes. Provided there are major changes through the rest of the year, it’s a valuable number to work with to plan next year’s budget.

Access these tools for free whenever you need more details on your current financial situation. It gives you insight on how hard you're working, whether you're getting paid what you're worth and whether or not you should consider making any changes. Data like this is valuable and will make your hard work more profitable.


Contact Us for Help

We are happy to answer questions and help you read and understand your pay stub. The online tools can shed light on whether or not you’re on track to reach your financial goals. If you’re trying to buy a home, pay off a car or qualify for a loan, you need this document.

Understand what you’re reading, and ask questions about what you don’t. There is no need to lack information when so many professionals are available to give assistance.

Contact our representatives today and let us help you move toward feeling educated. You work hard for your money every week. Why not use the available information and resources to understand where it’s going?

Only you can spend your money wisely, so learn how to read the paperwork your employer gives you. Questions like “What is Gross YTD?” will no longer make you feel nervous. Instead, you’ll feel more in control.

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