What Are These Deductions On My Paystub?

Q. I have some unfamiliar tax deductions on my paycheck. What could these be?

A. This is a very loaded question. Every company could create acronyms that are unique and describe the exact same tax item as another company, yet with a completely different code. There are however 4 standard tax deductions that will appear on the majority of pay stubs received in this country.

1. Federal – Could be called FIT, fed tax, f tax or Fed TX. This is often the first deduction that shows below the gross wages line. This is a calculation for withholding that is deposited on your behalf with the IRS by your employer towards your federal tax liability. The calculation comes from your Marital status and allowance value settings on the Federal Form W-4 that you gave your employer at some time in the past. The numbers on this document should be reviewed regularly and especially in Read more »