What Does SOH Mean on My Paycheck?

Understanding a paycheck can feel like deciphering a complex code, with many abbreviations and figures. Employees often encounter various deductions, taxes, and contributions on their pay stubs, leading to confusion about how gross earnings translate into net pay. Among these, “SOH” sometimes appears, leaving many to wonder about its meaning. This article clarifies what SOH typically represents on a paycheck and how it affects earnings.

Decoding SOH

The abbreviation “SOH” on a paycheck generally refers to “State Unemployment and Health” or variations thereof, often encompassing state-mandated contributions for unemployment insurance and, in some cases, state disability or health-related programs. While the exact acronym and its components can differ based on the specific state where an individual is employed, it broadly signifies state-level payroll taxes or contributions. These are distinct from federal taxes like Social Security and Medicare.

SOH typically represents contributions that fund state-run social safety nets. For instance, state unemployment insurance (SUI) is predominantly an employer-paid tax in most states, designed to provide temporary financial assistance to eligible workers who become unemployed through no fault of their own. However, some states may also require a portion of these contributions, particularly for disability or family leave programs, to be directly withheld from an employee’s wages. This distinction between employer-paid and employee-paid contributions helps understand the direct financial impact on a paycheck.

Key Components of SOH

When “SOH” appears on a pay stub, it often aggregates several state-specific programs. Two common components frequently associated with such state-mandated payroll items are State Unemployment Insurance (SUI) and State Disability Insurance (SDI).

State Unemployment Insurance programs provide temporary income to individuals who lose their jobs involuntarily and meet eligibility criteria. These benefits are funded primarily through taxes paid by employers, although a few states may require minimal employee contributions.

State Disability Insurance (SDI) programs exist in a limited number of states. SDI provides partial wage replacement for workers who are unable to work due to a non-work-related illness, injury, or in some cases, pregnancy and childbirth. Unlike SUI, SDI contributions are often funded, at least in part, by employee payroll deductions in the states where these programs are active. Some states may also include contributions for paid family leave programs under a similar umbrella, which offer benefits for caring for a seriously ill family member or bonding with a new child.

SOH and Your Earnings

SOH on a paycheck directly relates to an employee’s gross and net pay. Gross pay is the total amount earned before any deductions, while net pay is the actual take-home amount after all withholdings.

If SOH represents an employer-paid tax, like most State Unemployment Insurance (SUI) contributions, it typically does not reduce an employee’s net pay, though it may be listed for transparency. These employer contributions are a cost borne by the employer for maintaining their workforce and complying with regulations.

Conversely, if components of SOH, such as State Disability Insurance (SDI) or Paid Family Leave (PFL) contributions, are employee-funded, they will appear as deductions from the employee’s gross wages. These deductions reduce the employee’s taxable income for state purposes and consequently lower their net take-home pay. Pay stubs are generally required to detail these deductions, often listing them under “Deductions” or “Taxes,” sometimes with state-specific abbreviations. Understanding these entries allows employees to reconcile gross earnings with the final amount deposited.