Confused about ytd (year to date)

[Mosaud1998]

There are 2 different ytds. Which is starting to confuse me. I spoke to my manager but he didn't give me a clear answer. Maybe someone here can.

So the YTD shown on my check is around $27k/gross. I've been at the job for 4 months. The YTD shown on the YTD Compensation (what's YTD compensation...) with Emplyeer paid taxes added is $29k/gross.

Which YTD should I follow? The one on my paycheck or the compensation one?

[shoei]

Originally Posted by Mosaud1998

There are 2 different ytds. Which is starting to confuse me. I spoke to my manager but he didn't give me a clear answer. Maybe someone here can.

So the YTD shown on my check is around $27k/gross. I've been at the job for 4 months. The YTD shown on the YTD Compensation (what's YTD compensation...) with Emplyeer paid taxes added is $29k/gross.

Which YTD should I follow? The one on my paycheck or the compensation one?

Yard Compensation is not something to look at. It's going to include anything the employer would have to pay, such as PAYROLL taxes. YTD could also be reflecting future payments not yet made but they know they have to.

And it's not your manager's fault they couldn't answer you because truthfully, most managers won't know because this is something usually over a managers pay grade. Meaning, managers don't pay out payroll / payroll taxes or handle YTD et all. They just hand you your paycheck if you don't have direct deposit lol.

[Fritzer]

What do you mean employer paid taxes, like withholding? Go with whatever number is before any taxation.

[shoei]

Originally Posted by Fritzer

What do you mean employer paid taxes, like withholding? Go with whatever number is before any taxation.

He's talking about YTD as in Year to Date in earnings.

You're referencing take home / after taxes. Not what he's inquiring about.

[Fritzer]

Originally Posted by shoei

He's talking about YTD as in Year to Date in earnings.

You're referencing take home / after taxes. Not what he's inquiring about.

No I don't mean take home. I'm saying he should go with whatever is his YTD earnings before any compensations/withholding/taxation.

[TiMSport]

OP: Why don't you just speak with your accounting department?

[shoei]

Originally Posted by TiMSport

OP: Why don't you just speak with your accounting department?

He doesn't need to. It's exactly what I said. It's never gonna match up - employers year to date and what the employee made on their actual paycheck. YTD for EMPLOYERS will include anything in addition. Additional things the employee wouldn't pay for. I.E company payroll taxes for example or future taxes paid in advance.

I have employees ask me the same thing. Usually close to tax season or when they are filling out a credit application. Apartment, new car etc. Unsure why op is inquiring about his YTD however.

[TiMSport]

Yeah I guess and I also don't understand the purpose of the question. I don't get why on his paycheck the employer's YTD info is shown in addition to just his own YTD income. I suppose that's why I'm not an accountant or in charge of payroll at my company.

[Mosaud1998]

Originally Posted by TiMSport

Yeah I guess and I also don't understand the purpose of the question. I don't get why on his paycheck the employer's YTD info is shown in addition to just his own YTD income. I suppose that's why I'm not an accountant or in charge of payroll at my company.

I confused and thought someone here could help out. that's it

[chassis]

Employer paid taxes are 6.2% for OASDI (Social Security) and 1.45% for Medicare. Read carefully each word on your pay stubs or documents.

Does your employer contribute to your retirement savings plan (401k) or health spending account (HSA)? These will also be listed on your documents.

[shoei]

Originally Posted by TiMSport

Yeah I guess and I also don't understand the purpose of the question. I don't get why on his paycheck the employer's YTD info is shown in addition to just his own YTD income. I suppose that's why I'm not an accountant or in charge of payroll at my company.

It's just the way it's done. Usually, corporations hire an entity - most use ADP for example. They migrate all the employee and company info, set up payroll and the fees / taxes get paid by the company. Employers taxes will change every payroll - hours will vary, overtime, missed shifts (less hours for the pay period) etc.

Laundry list of reasons where the YTD won't match but it's almost always additional back owed fees or future taxes / fees paid in advance by the EMPLOYER. Zero to do with the OP.

I only know cuz I utilize ADP for my businesses.

[chassis]

Mosaud1998 look at your pay stub for “regular” earnings. You should be able to calculate your hourly wage x the number of hours worked, to arrive at the number on your paycheck. Or a similar calculation if you are a salaried employee.

Commissions may be handled on a separate line item, not sure.

Is your employer deducting any of your pay for retirement savings? Or do they contribute to your retirement savings? These amounts will be shown on the pay stub.

[Manny01]

This really is jurisdiction dependent, but generally speaking an employees YTD represents gross income to that employee.

If an employer also discloses a YTD number this generally represents total company expense for that employee. These numbers are usually different because of fringe benefits, employer paid payroll taxes, cash vs. accrual differences, etc. You can ignore employer YTD, it's not relevant to you at all.

[Mosaud1998]

Originally Posted by chassis

Mosaud1998 look at your pay stub for “regular” earnings. You should be able to calculate your hourly wage x the number of hours worked, to arrive at the number on your paycheck. Or a similar calculation if you are a salaried employee.

Commissions may be handled on a separate line item, not sure.

Is your employer deducting any of your pay for retirement savings? Or do they contribute to your retirement savings? These amounts will be shown on the pay stub.

nothing out for 401k. I opted out of that I believe.

[vreihen16]

Originally Posted by Mosaud1998

nothing out for 401k. I opted out of that I believe.

Biggest mistake of your life. It's NEVER too early to start funding a retirement account.....

[upstatedoc]

Originally Posted by Mosaud1998

nothing out for 401k. I opted out of that I believe.

The wisdom of youth

[JP10]

Originally Posted by upstatedoc

The wisdom of youth

Some youth haha, don't group me into that

[Nativetexan]

OP,

Regarding retirement, I hope you're saving something somewhere for it.

A 401k is a blessing to have access to, even if there is no employer match/contribution.

I would recommend going to the SSA website and looking up what your SS benefits will be when you retire. Then take 20% out for taxes.

Now take the left over number and figure out if you think you're comfortable living on that alone…if not…get to saving ASAP.

[upstatedoc]

Originally Posted by Nativetexan

Accountant here…

Typically "Employer YTD" and "Employer costs" are shown

1. as proof that the employer is paying SS and MC taxes for the employee.

2. To show the employee the fringe benefit costs responsible by the employer (insurance, retirement, travel, etc). This cost to the employer is usually forgotten by the employee but should be remembered as it is part of the cost of having said employee and is "indirectly part of their compensation".

We already have an accountant here but he's Canadian.

[shoei]

Originally Posted by upstatedoc

We already have an account here but he's Canadian.

What account is it? Can I buy anything on this account? I need ketchup chips on this account.

[Mosaud1998]

I think I'm opted in for 401k. I just don't remember. I gotta double check

[Nativetexan]

Originally Posted by Mosaud1998

I think I'm opted in for 401k. I just don't remember. I gotta double check

Max it out if you can.