What Information Is Available on a Paycheck Stub?

A paycheck stub serves as a detailed record of an employee’s earnings and deductions for a specific pay period. It provides transparency into how gross wages are calculated and what amounts are withheld before an employee receives their net pay. Understanding the information presented on a paycheck stub is important for managing personal finances, verifying accurate payments, and maintaining proper financial records.

Employee and Employer Information

A paycheck stub begins by clearly identifying both the employee and the employer. The employee’s full name, address, and often a portion of their Social Security Number or a unique employee identification number are typically displayed. This information ensures the stub is correctly attributed to the individual receiving the pay.

The employer’s details, including their legal name and address, are also present on the stub. In some instances, the employer’s identification number (EIN) may be included. This identifying data is necessary for record-keeping, ensuring proper attribution of wages and withholdings for tax and regulatory compliance.

Gross Earnings Breakdown

The gross earnings section of a paycheck stub details all compensation earned before any deductions are applied. This part typically specifies the pay period’s start and end dates, along with the actual pay date. It provides a comprehensive view of how the total gross pay is accumulated.

Gross earnings can encompass various forms of compensation. This includes regular wages for standard hours worked, or a fixed salary for salaried employees. Overtime pay, calculated at a higher rate for hours exceeding the standard workweek, is often itemized separately. Additional payments such as bonuses, sales commissions, or holiday pay also contribute to the gross total. Other elements like paid time off, sick leave, or even imputed income from certain benefits might also be listed.

Required Deductions

Required deductions are mandatory withholdings from an employee’s gross pay, dictated by federal and, where applicable, state or local laws. Federal income tax withholding is a primary deduction, with the amount determined by the employee’s Form W-4, Employee’s Withholding Certificate. This form, submitted to the employer, provides information about the employee’s tax situation, such as filing status and any adjustments for dependents or other income, to help ensure the correct amount of federal income tax is withheld.

Social Security and Medicare taxes, collectively known as FICA (Federal Insurance Contributions Act) taxes, are also mandatory. Social Security tax has a specific rate on earnings up to an annual limit, which is split equally between the employee and employer. The Medicare tax has a specific rate on all covered wages, with no wage limit. An additional Medicare tax applies to wages exceeding certain thresholds. State and local income taxes are also withheld if applicable.

Voluntary Deductions

Voluntary deductions are amounts withheld from an employee’s pay based on their personal choices or agreements. These deductions can significantly impact an employee’s net pay and often fall into two categories: pre-tax and post-tax. Pre-tax deductions are subtracted from gross income before taxes are calculated, thereby reducing the employee’s taxable income. Common examples include contributions to traditional 401(k) retirement plans, health insurance premiums, Health Savings Accounts (HSAs), and Flexible Spending Accounts (FSAs).

Post-tax deductions are taken from an employee’s pay after all applicable taxes have been withheld. These deductions do not reduce taxable income. Examples of post-tax deductions include contributions to Roth 401(k) or Roth IRA retirement plans, certain life or disability insurance premiums, union dues, and charitable contributions made through payroll. Wage garnishments, which are court-ordered withholdings for debts like child support or unpaid taxes, are also post-tax deductions and are mandatory once ordered.

Net Pay and Summary Figures

Net pay represents the final amount of money an employee receives after all required and voluntary deductions have been subtracted from their gross earnings. This is often referred to as the “take-home” pay. Understanding net pay is essential for personal budgeting and financial planning, as it reflects the actual funds available to the employee.

Paycheck stubs also typically include year-to-date (YTD) totals for gross pay, all deductions, and net pay. These cumulative figures provide a comprehensive overview of an employee’s earnings and withholdings throughout the year. YTD totals are useful for tracking financial progress, verifying annual contributions, and preparing for tax season.