It’s the small things you do that count. Here are five tips to change how you’re paid to save you time and money each payday.
1. Have Your Payroll Department Save for You
Put your payroll department to work for you by requesting your paycheck be deposited into multiple bank accounts. For example, have them transfer a set amount, say $100, from each paycheck into a savings account for your next vacation while the rest goes into your checking account for expenses. Just set it and forget it!
2. Prepare for the Future
Now is the time to start taking advantage of retirement savings programs at work. One dollar put aside today can grow exponentially more valuable by the time you retire. Even better when you save for retirement, you’ll pay less in taxes now. And that’s not the only incentive. Many employers will match the amount you contribute as well, so if you’re not taking advantage of matching programs at work you’re throwing away free money.
3. Give Yourself an Instant Raise
The first day of a new job can be blur. Among all the training and introductions, you also filled out a form that greatly impacts the amount of every paycheck. The federal Form W-4 tells your employer how much money to take out of each paycheck for federal income taxes. Review it to make sure you’re not having too much tax withheld from each check. Don’t worry, the IRS has a tool to help make it easy for you to give yourself a paycheck checkup.
4. Plan for Medical Expenses to Save Big
Going to the doctor is never fun and the big bill at the end can make it even worse. Find out if your employer offers a Health Care Flexible Spending Account. With minimal planning you can save up to 37% off your medical expenses. You can even pay for everyday items like Band Aids, or contact lenses, and more with these special spending accounts.
5. Get Paid Electronically
Ask your payroll department what electronic payment options your employer offers. Direct Deposit is easy and a smart way to be paid, while payroll cards be a great alternative if you don’t have a bank account. Many employers are even offering to pay you on-demand – no more waiting weeks to receive your pay! Picking the right option can save you both time and money while also helping the environment. Talk to your payroll department, they can help you figure out which payment method works best for you.
Bonus: Turn Your Paycheck Knowledge Into Money for School!
Turn your paycheck knowledge into a scholarship for school! Take our paycheck quiz and score 100% to be entered into a random drawing from the American Payroll Association and sponsor Paychex to win one of three education scholarships.
After taking a close look at how your paycheck is being calculated, be sure to take the “Getting Paid In America” survey, available through September 10. You’ll be automatically entered to win a bonus paycheck and your dream vacation from the American Payroll Association.