What Is OTH on Your Paycheck and What It Includes

The abbreviation “OTH” on paychecks often leads to confusion for employees trying to decipher their earnings and deductions. This line item represents various financial adjustments that influence net pay. Understanding what “OTH” signifies on a pay stub is important for managing personal finances and ensuring compensation accuracy. This article clarifies the meaning behind “OTH” and the different types of income and deductions it may encompass.

Understanding “OTH”

“OTH” on a paycheck stands for “Other.” Employers use this generalized category as a catch-all for financial adjustments that do not fit standard classifications. Unlike regular wages, federal taxes, state taxes, or FICA, “OTH” provides a flexible designation for less common or specific items. Its purpose on a pay stub is to group diverse financial transactions, making the primary sections of the pay statement clearer and less cluttered. This allows payroll systems to process and display unique circumstances without creating an exhaustive list of individual line items.

Common “OTH” Deductions

The “OTH” category includes various deductions that reduce an employee’s gross pay. Health insurance premiums, if not itemized separately, appear here, reflecting the employee’s contribution to medical, dental, or vision plans. Similarly, contributions to retirement plans, such as a 401(k) or pension, might be grouped under “OTH” if not explicitly listed with their own codes. These deductions are often pre-tax, meaning they are subtracted from gross income before taxes are calculated, which can lower an individual’s taxable income.

Wage garnishments are a frequent deduction found under “OTH.” These are legal procedures where an employer withholds a portion of an employee’s earnings to satisfy a debt, such as court-ordered child support, student loans, or unpaid taxes. Federal law, Title III of the Consumer Credit Protection Act, limits the amount that can be garnished, typically to 25% of disposable earnings or 30 times the federal minimum wage, whichever is less. However, for child support or alimony, up to 50% or 60% of disposable earnings can be garnished.

Other deductions under “OTH” include repayments for company loans, union dues, or charitable contributions elected by the employee. Costs for uniforms or specific tools required for a job, if paid through payroll deduction, may also be listed. These voluntary or involuntary deductions are subtracted from an employee’s pay, impacting net take-home amount. Some deductions, like Roth IRA contributions or certain insurance premiums, may be post-tax, meaning they are taken out after taxes have been withheld.

Common “OTH” Earnings

Beyond deductions, “OTH” can represent various types of earnings or additions to an employee’s pay. Expense reimbursements, such as for business travel, mileage, or supplies, may appear. These reimbursements are non-taxable if part of an accountable plan and substantiated with proper documentation. If an employer provides a per diem for lodging, meals, and incidental expenses during business travel, it may be listed under “OTH.” Per diem payments are non-taxable if they are equal to or less than the federal per diem rate and the employee provides an expense report.

Certain types of bonus payments, particularly non-regular or discretionary ones, might be categorized as “OTH” if not specifically itemized. For example, a one-time performance or referral bonus could be included. Taxable fringe benefits, non-cash benefits provided by an employer considered part of an employee’s gross income, may show up as “OTH” earnings. Examples include personal use of a company car, educational assistance, or club memberships.

Non-regular pay adjustments, such as retroactive pay increases, severance pay, or specific allowances not covered by standard wage categories, can fall under “OTH.” This category provides employers with flexibility to record and report a wide array of compensation elements that contribute to an employee’s total earnings.

Getting Specific Information

To understand a specific “OTH” entry on a paycheck, the most direct approach involves reviewing the detailed pay stub. Many employers provide comprehensive digital or physical pay statements that offer a breakdown or explanation of codes. These detailed stubs often include a legend or a separate section clarifying abbreviations and their meanings. Employees can usually access these through an online payroll portal or by requesting a physical copy.

If the detailed pay stub does not provide sufficient clarity, contact the employer’s Human Resources (HR) or Payroll department. These departments manage employee compensation and can provide precise information regarding any specific line item. Have the pay stub in question ready when making inquiries, as this allows the department to quickly locate and explain the entry.