TAX-TIP ALERT: It’s Tax Time!

Need help? Interactive Web site deciphers a paycheck

They’re baaaack.

Income tax forms began arriving in mailboxes soon after Christmas. Following closely behind, W-2 forms and other statements listing gross pay, net pay, taxes and other adjustments, are gobbledygook to many.

What’s a taxpayer to do?

A good place to start is Anatomy of a Paycheck, a Web site featuring an educational, interactive presentation explaining the parts of a paycheck and earnings statement. It’s the brainchild of Wendy Wright, a Rochester Institute of Technology advanced technical-communication graduate student. Wright’s idea evolved into the presentation now featured on the Paychex Inc. Web site.

The presentation gives examples and explanations, grouped by paycheck and earnings statement, or pay stub. It defines terms such as earnings, pre- and post-tax adjustments, taxable compensation, and net or "take-home" pay. It also includes social security and Medicare tax rates, maximum withholding amounts and a step-by-step net-pay calculation example.

Uncertainty and dread are characteristics shared by death and taxes. Anatomy of a Paycheck, at least, helps alleviate some of the uncertainty around tax time.