What does YTD mean on the pay stub?
5.0k views |
Last modified 10/8/2020 6:22:30 AM EST |
Added by 123PayStubs Team
YTD simply means year-to-date. A year-to-date is a period of time between the beginning of the current year and the current date. The YTD is used in multiple instances such as pay stubs.
It is used in pay stubs to keep track of the wages, most probably employee's earnings or deductions from the start of the year to date. It is a period that starts from the first day of the calendar year or fiscal year to the current date.
For example, if an employee's YTD earning on June 1st is $10,000, then it means that from January 1st to June 1st, the employee has earned a total of $10,000. When you look at the YTD on the paycheck stub, you will find YTD for almost everything: YTD Gross, YTD Net Pay, and so on.
Here’s what the different YTDs mean:
- YTD Gross Pay: This is the total amount an employee has earned from the start of their work to date before taking out all required and voluntary deductions.
- YTD Taxes: This is the year-to-date amount of the deductions taken from employee's YTD Gross Pay for federal income taxes and FICA taxes (social security and Medicare).
- YTD Net Pay: This is the total amount an employee has earned from the start of their work to date after taking out all required and voluntary deductions.
- YTD Hours: The total number of hours the employee worked for the year to date.
The YTD not just tells how much employees have earned but can also help them plan for their future. Employees can check the YTD amount on pay stubs and see whether they are on track or not. Furthermore, YTD is useful for tax purposes.
Here's a helpful video on calculating YTD values: