What Information Is Contained on a Pay Stub?

A pay stub, also known as a pay or wage statement, serves as a comprehensive record of an employee’s compensation for a specific pay period. It details how gross earnings are calculated and what amounts are withheld, providing a transparent look at how take-home pay is determined. This document is important for personal financial management, allowing individuals to track income and understand deductions.

Essential Identification and Period Information

Pay stubs typically begin with identification details for both the employee and employer. Employee information includes name, address, and often an employee ID number. The last four digits of the Social Security Number may also be present.

Alongside employee details, the employer’s name, address, and Employer Identification Number (EIN) are generally present. An EIN is a unique nine-digit federal tax ID assigned by the IRS to businesses, functioning similarly to a Social Security Number for an individual. This section also specifies the pay period’s start and end dates, along with the actual pay date when funds were issued.

Components of Gross Pay

Gross pay represents the total amount earned by an employee before any deductions. This section itemizes various forms of earnings for the current pay period. Regular wages or salary are typically listed, often including the hourly rate and hours worked for hourly employees.

Overtime pay, earned for hours beyond the standard workweek, is usually shown separately, reflecting the higher premium rate. Compensation based on commissions or one-time payments like bonuses are also itemized. Other earnings, such as tips, shift differentials, or expense reimbursements, may also appear. The sum of these earnings categories constitutes the total gross pay for the pay period.

Understanding Deductions

Deductions are amounts withheld from an employee’s gross pay, leading to their net or take-home pay. These can be categorized as mandatory tax deductions or voluntary deductions, which can be pre-tax or post-tax. Federal income tax is a mandatory deduction, with the amount withheld based on the employee’s Form W-4 elections and income.

State and local income taxes are also mandatory in many jurisdictions. Social Security and Medicare taxes, collectively known as FICA taxes, are mandatory withholdings. For 2025, the Social Security tax rate is 6.2% for both the employee and employer, applied to wages up to $176,100. The Medicare tax rate is 1.45% for both parties on all covered earnings, with an additional 0.9% applying to wages exceeding $200,000.

Voluntary pre-tax deductions are taken from gross pay before taxes are calculated, which reduces the employee’s taxable income. Examples include health, dental, and vision insurance premiums, and contributions to traditional 401(k) or 403(b) retirement plans. Contributions to Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) are also typically pre-tax.

Voluntary post-tax deductions are withheld after taxes have been calculated and do not reduce taxable income. Examples include Roth 401(k) contributions, union dues, and certain life or disability insurance premiums. Wage garnishments, which are legal orders for employers to withhold a portion of earnings for debts like child support or unpaid taxes, are also post-tax deductions.

Net Pay and Summary Information

Net pay, often referred to as take-home pay, is the amount an employee receives after all deductions have been subtracted from their gross pay. This figure represents the final compensation deposited or paid to the employee for the pay period. It is calculated by taking the gross pay and reducing it by the total of all mandatory and voluntary deductions.

Pay stubs also typically include year-to-date (YTD) totals for various financial categories. These cumulative figures show total gross pay, total deductions for each category (such as YTD Federal Tax or YTD Social Security), and YTD net pay from the beginning of the calendar year up to the current pay date. These YTD totals are useful for tracking overall earnings and monitoring tax withholdings.

Additional Information Found on a Pay Stub

Beyond the core earnings and deductions, pay stubs often provide supplementary details. This includes information on accrued leave balances, such as vacation, sick leave, or paid time off (PTO). These balances indicate the amount of time an employee has available for future use.

Some pay stubs may also list employer contributions to benefit plans, such as health insurance premiums or matching contributions to a 401(k) plan. While these amounts are not deducted from the employee’s pay, they are listed for informational purposes. Occasionally, pay stubs may include memo fields for specific messages or notes from the payroll department.