What Important Information Is Available on a Pay Stub?

A pay stub serves as a detailed record of an employee’s compensation for a specific work period. It provides transparency regarding earnings, deductions, and net pay, acting as a financial statement from employer to employee. This document helps employees verify wages, understand withholdings, and maintain personal financial records. For employers, pay stubs ensure compliance with labor laws and provide a clear audit trail for payroll and tax purposes.

Identifying Details

A pay stub begins with identifying information for both the employee and the employer. The employee’s full name, address, and often the last four digits of their Social Security Number (SSN) or an internal employee ID number are included. An employee ID number is an internal company identifier used for payroll processing and tracking, distinct from an SSN which is for federal identification and tax purposes.

The employer’s name, address, and Employer Identification Number (EIN) are also prominently displayed. The EIN is a unique nine-digit number assigned by the IRS to businesses for tax identification. This number is for tax reporting and official business records, ensuring compliance with federal and state guidelines. Verifying these details on each pay stub is important for accuracy, particularly for tax filings and proper record-keeping.

Earnings and Pay Period Overview

This section details the total compensation earned before any deductions, known as gross pay. Gross pay encompasses all forms of earnings, including regular wages, overtime pay, bonuses, and commissions. For hourly employees, the pay stub will specify the hourly rate and the number of regular and overtime hours worked within the pay period. Salaried employees typically see their prorated salary amount for the period.

The pay period dates, indicating the start and end dates for which the wages were earned, are also clearly listed. This timeframe is important for understanding which work period the payment covers. The specific payment date, which is when the wages were issued or deposited, is also provided.

Withholdings and Deductions

After gross pay is calculated, various withholdings and deductions are subtracted to arrive at the net pay, which is the actual take-home amount. Mandatory withholdings include federal income tax, which is determined by the employee’s Form W-4, Employee’s Withholding Certificate. This form informs the employer how much federal tax to withhold based on filing status and other adjustments.

State and local income taxes are also withheld where applicable, often based on state-specific withholding forms similar to the federal W-4. The Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare, are another mandatory deduction. For 2025, employees contribute 6.2% of wages up to a Social Security wage base limit of $176,100, and 1.45% for Medicare tax on all wages, with no wage base limit. Employers match these contributions, bringing the total FICA rate to 15.3%.

Voluntary deductions are those elected by the employee, such as health insurance premiums for medical, dental, or vision coverage. Contributions to retirement plans like 401(k)s or 403(b)s are also common voluntary deductions. Other benefits like life insurance, disability insurance, Flexible Spending Accounts (FSAs), or Health Savings Accounts (HSAs) may also be deducted. These voluntary deductions can be pre-tax, reducing taxable income, or post-tax.

Involuntary deductions, also known as wage garnishments, can also appear on a pay stub. These are legally mandated withholdings, often due to court orders for child support, unpaid taxes, or other debts.

Cumulative Totals

Pay stubs frequently include cumulative totals, often labeled as “Year-to-Date” (YTD) figures. These totals represent the accumulated amounts for gross pay, federal income tax, state income tax, FICA taxes, and all other deductions from the beginning of the calendar year up to the current pay period. The YTD information provides a comprehensive overview of an employee’s earnings and withholdings throughout the year.

These cumulative figures are useful for personal financial planning and budgeting, allowing employees to track their annual income and the taxes they have paid. The YTD totals are also what will ultimately be reported on annual tax documents, such as Form W-2, Wage and Tax Statement, issued by employers at year-end.