What does YTD mean on the pay stub?
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Last modified 6/3/2020 8:31:12 AM EST |
Added by 123PayStubs Team
YTD simply means year-to-date. If you get your pay stub for February, the YTD shows the earnings from Jan 1. When you look at your pay stub, you will find YTD for almost everything: YTD Gross, YTD Net Pay, and so on.
It is used on pay stubs to keep track of the wages, most probably employee's earnings or deductions from their start of work 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.
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 taxes, insurance, and retirement savings plan.
- 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.
Now, you might wonder why is the YTD important? It just not 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. Further, YTD is useful for tax purposes.