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Most of us recognize the standard items on our pay stub, such as tax deductions, Social Security contributions, and our income. However, there might be additional codes that are less familiar, and Credit.com offers an explanation for those.
Loren Downey, payroll practice director at Namely, explains that companies usually include details about your health insurance, retirement contributions, and any wage garnishments. The code for a 401K plan is straightforward, representing your retirement savings, while 401KER typically refers to your employer's contribution to the plan. Credit.com offers further clarification on these items.
Things can get a little more complex when companies list codes specific to their internal processes or benefits offered to employees. For example, some businesses may use 'HS' for health insurance, while others may use 'HI.' According to Downey, it all depends on the company's preferences, so you may see different codes. In cases where child support or wage garnishment deductions are applied, they might show up as 'GARN' or 'CHSPPRT.' Downey notes that these codes are usually intuitive—for example, 'LEVY' could indicate a tax levy.
While these codes are fairly standard, employers might have their own variations, especially for expenses like bonuses or specific benefits. If you encounter an unfamiliar code, reaching out to HR is always a good idea. However, these are some of the most commonly used ones. For more details, check the link below.
Image courtesy of John Lambert Pearson.
