Keys to understanding a pay stub

See what the key aspects are for properly managing your income.
When managing personal finances, one of the key factors for any user is to have a firm grasp of their own income. In order face the invoices and the everyday expenses, not is enough with conscious being of the cost of the same, but also is necessary know how much money goes to enter in the account, for what this available one our calculator of salaries, and when leaves to produce that deposit. The document that provides this valuable information to any worker is the paycheck. If you want to understand your paycheck and find out how to manage your income efficiently, read on.
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Basic concepts of a paycheck

The salary makes reference so much to the document that specifies all the details on the wage of an employee as to the amount that the company pays to the employee after the deductions corresponding, which knows as take-home pay. Therefore, a paycheck is a binding instrument that contains the company's wage obligations towards each of its employees.

The frequency with which a company issues paychecks depends on each worker's wage conditions: specifically, the liquidity period shown in the document itself. This period is most commonly weekly, monthly or quarterly, although it may vary depending on the type of contract. In addition to the date, the company's and employee's identification details and the company's stamp, there are three key components in a paycheck: accrued income (which represents the gross salary), deductions or withholdings, and the amount owed, or net salary.

  • Payments: these are the employee's salary and non-wage items, i.e. the amount owed to the employee for work performed. The former include the base salary and any other supplements, overtime pay or thirteenth salaries that the worker is entitled to. The non-wage items include the payment of allowances, potential compensation payments, and others.
  • Deductions or withholdings: there is a series of deductions that are applied to the gross total in order to yield the net salary. These are the deductions inherent to Social Security and the personal income tax withholdings that the company pays on behalf of the employee. The percentage of these deductions depends on the social security conditions and on the benefits that the worker is entitled to as per their employment contract.
  • Amount owed: from the point of view of income, this is the most important number for the employee. The cash receivable or net salary is the amount obtained by subtracting the deductions from the total accrued and, therefore, the amount that is to be paid into the employee's account.

The paycheck and bank account

To receive a paycheck, you obviously need to have a bank account into which to deposit it. However, it's important to know how to choose, since not all accounts offer the same features. Payroll accounts are designed precisely for this purpose; as a result, they usually offer ideal conditions for any user who wishes to direct deposit their paycheck.

BBVA offers the best features in its Va Contigo Account. Simply by direct depositing a paycheck for €800 or more, you can enjoy an account with no maintenance, administration, card issue, transfer, debit cash withdrawal or check issue (in euros) fees. When this requirement is satisfied, an advisory team is made available to the account holder that is ready to help as needed. The overdraft service associated with this account also offers a great advantage when it comes to paying charges and the account balance is not enough.

How can you effectively manage the income from your salary?

Since your paycheck is a legal document, it is essential to thoroughly understand its content and verify that all the details are correct. Similarly, managing income correctly is key when it comes to making the most of it. However, for many users it's hard to find the time needed to do all their transactions, check their paycheck and account movements and, on top of that, to make optimal financial decisions. Because of this, companies such as BBVA make advisers available to their customers so they can ask them any questions quickly and easily.

The BBVA Contigo Adviser is an exclusive service that allows BBVA customers to contact a team of managers without having to go to the branch. This service, associated with the Va Contigo Account, is available 24 hours a day through the BBVA mobile application or website to answer any questions regarding your paycheck or any financial transaction you wish to carry out. By making it possible to send questions through the app, the user can also access the conversation history and re-read any previous interaction. You can also contact the adviser by phone, or schedule an appointment to meet this professional in person.

The BBVA Contigo Adviser aims to simplify users' transactions and lets them, for example, sign remotely through the BBVA app or website.

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Now that you understand your paycheck, it's time to go a step further and sign up for those services that will allow you to improve how you manage your income. With the BBVA Va Contigo Account, you won't only be able to enjoy the advantages of the BBVA Contigo online Adviser, but you will also be able to do all your transactions easily at or in the BBVA mobile app, no matter where you are. Sign up online today and start enjoying all its advantages.

And if already have open an account in another company and wish bring it to BBVA, put at your disposal our Removals service that sees to all the process. So much available in as in BBVA's app, this service you allows, also, change your income (for example, your salary or pension) or your bills (water, gas, telephone, internet, schools, etc.) in a comfortable way, fast and with no cost type.

BBVA is not liable for the content, truthfulness, accuracy, adequacy, integrity or timeliness of the information included in the articles, which were prepared by third parties external to BBVA. The article is for information purposes only. It is not binding or compulsory and it does not constitute a commercial offer or contractual commitment on the part of BBVA.

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