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. This document, whether provided in paper or electronic format, offers transparency into how compensation is calculated and what amounts are withheld. Understanding the information presented on a paycheck stub is important for managing personal finances, verifying accurate payments, and ensuring compliance with tax regulations.

Identifying Information

Every paycheck stub begins with identifying details for both the employee and the employer. This section typically includes the employee’s full name and address, used for record-keeping and official communications. Some stubs may also display an employee ID number, a unique internal identifier distinct from a Social Security Number for privacy.

The employer’s name and address are also present, indicating the source of the payment. The pay period dates, encompassing the start and end of the work cycle, are listed. The pay date, specifying when the payment was issued, completes this initial section.

Gross Pay Details

Gross pay represents an employee’s total earnings before any deductions are subtracted. This figure is the starting point for all payroll calculations. For hourly employees, gross pay is calculated by multiplying their hourly rate by the number of hours worked, including any overtime hours paid at a higher rate.

Other forms of compensation also contribute to gross pay, such as bonuses, commissions, tips, and shift differentials for working undesirable hours.

Deductions and Withholdings

Following gross pay, the paycheck stub details various deductions and withholdings. These subtractions fall into two main categories: mandatory and voluntary. Mandatory deductions include federal income tax withholding, determined by the employee’s W-4 form, which instructs the employer on how much tax to remit to the IRS based on filing status and other adjustments.

State and local income taxes are also withheld where applicable, with rates varying by jurisdiction. Federal Insurance Contributions Act (FICA) taxes, comprising Social Security and Medicare taxes, are another mandatory deduction. For 2025, the Social Security tax rate is 6.2% on earnings up to $176,100, while the Medicare tax rate is 1.45% on all taxable wages, with an additional 0.9% for earnings exceeding certain thresholds.

Voluntary deductions typically involve amounts withheld for employee benefits and other elective contributions. Common examples include premiums for health, dental, and vision insurance coverage, contributions to retirement plans (such as 401(k)s or 403(b)s), flexible spending accounts (FSAs) or health savings accounts (HSAs) for healthcare expenses, wage garnishments, or union dues.

Net Pay and Summary Information

Net pay, often referred to as take-home pay, is the final amount an employee receives after all mandatory and voluntary deductions are subtracted from gross pay. This is the amount that is either directly deposited into a bank account or issued as a physical check. Understanding net pay is important for personal budgeting and financial planning.

Paycheck stubs also provide year-to-date (YTD) totals, which show the cumulative amounts for gross earnings, taxes withheld, and various deductions from the beginning of the calendar year to the current pay period. These YTD figures are valuable for tracking overall financial progress and are used for tax planning purposes. Some stubs may also display accumulated leave balances, such as sick time or vacation time.