How to Verify the Accuracy of Your Pay Stub

A pay stub details an employee’s earnings and deductions for a specific pay period. It serves as a record of wages earned, taxes withheld, and other contributions, offering transparency into how gross pay translates to net pay. Verifying its accuracy is a fundamental financial practice, impacting your financial planning and tax obligations. Ensuring its correctness can prevent issues such as incorrect tax filings, underpayment of wages, or miscalculations of retirement contributions.

Key Information on a Pay Stub

A typical pay stub contains information essential for understanding your compensation. It includes identifying details for both the employee and employer, such as names, addresses, and the employer’s identification number (EIN).

Pay period information specifies the start and end dates for which wages were earned, along with the pay date. Earnings are detailed, beginning with gross pay, the total amount earned before deductions. This gross amount is often broken down into components like regular hours, overtime, bonuses, commissions, or paid leave.

Deductions are itemized separately. Pre-tax deductions, such as 401(k) contributions or health insurance premiums, reduce taxable income. Post-tax deductions might include garnishments or union dues.

Mandatory tax withholdings include federal, state, and local income taxes, Social Security, and Medicare taxes. After deductions are subtracted from gross pay, the remaining amount is your net pay. Most pay stubs provide year-to-date (YTD) totals for all earnings and deductions.

Steps to Verify Pay Stub Accuracy

Verifying your pay stub’s accuracy involves reviewing each component against your personal records and tax information. Confirm your personal details, such as name, address, and Social Security Number. Also, check that your pay rate is correct according to your employment agreement.

Compare the pay period dates and reported hours or salary with your timesheets or work logs. For hourly employees, calculate gross pay by multiplying regular hours by your hourly rate, and any overtime hours by their appropriate overtime rate. For salaried employees, ensure gross pay aligns with your agreed-upon salary.

Review all tax withholdings. Federal income tax withholding should align with the information you provided on your Form W-4, Employee’s Withholding Certificate. The IRS provides an online Tax Withholding Estimator that can help you determine if the correct amount is being withheld based on your income, deductions, and credits.

Social Security tax is withheld at a rate of 6.2% on earnings up to an annual wage base limit, which is $176,100 for 2025. Medicare tax is 1.45% of all covered wages, with no wage base limit. An additional Medicare tax of 0.9% applies to wages exceeding $200,000 in a calendar year, without regard to filing status. Calculate these amounts based on your gross pay and compare them to the deductions on your stub.

Examine pre-tax deductions like 401(k) contributions or health insurance premiums, ensuring they match your enrollment forms or benefit statements. Similarly, verify any post-tax deductions against their respective agreements, such as union dues or garnishments. After confirming all earnings and deductions are accurate, calculate your net pay by subtracting the total deductions from your gross pay. This calculated net amount should match the net pay listed on your pay stub.

Finally, review the year-to-date (YTD) totals for all categories. Compare the YTD totals from your current pay stub to the YTD totals from your previous pay stub, adding the current period’s amounts. This step helps ensure continuity and catches any cumulative errors that might have occurred over several pay periods.

What to Do About Pay Stub Discrepancies

If, after thoroughly verifying your pay stub, you identify any discrepancies, the first step is to gather all relevant documentation. This includes previous pay stubs, employment agreements, timesheets or work logs, benefit enrollment forms, and your most recently submitted Form W-4. These documents will serve as evidence to support your claim.

Once you have compiled your documentation, contact your employer’s payroll or human resources department. It is advisable to initiate contact in writing, such as via email, clearly stating the specific discrepancy you have identified. Provide precise details, including the pay period in question, the exact amount you believe is incorrect, and reference the supporting documents you have gathered.

Formally request a clarification or correction of the error. Maintain a clear and professional tone in all communications. Keep detailed records of all interactions, including dates, names of individuals you spoke with, and summaries of discussions. If the issue is not resolved promptly within a reasonable timeframe, typically a few business days to a week, follow up with the department.

In situations where internal resolution efforts are unsuccessful, or if you suspect a more serious issue, you may need to consider escalating the matter. This could involve consulting with a state labor department or, in complex cases, seeking advice from legal counsel specializing in employment law. These external resources can provide guidance and assist in resolving disputes when direct communication with your employer proves ineffective.