Common deductions comprise contributions to retirement plans (e.g., 401(k)), health insurance premiums, life insurance premiums, and other benefits. Additional tax-related information, such as Social Security and Medicare contributions, may also be included.ĭeductions: This segment lists the amounts subtracted from the employee's gross earnings as deductions. Taxes: Pay stubs provide a breakdown of taxes withheld from the employee's earnings, such as federal income tax, state income tax, and local taxes.
It may specify earnings by hourly rate, salary, or other applicable payment methods. Pay stubs serve as valuable records of an employee's compensation and find utility in verifying income, calculating taxes, and monitoring deductions.Ī typical pay stub includes the following essential information:Įmployee Information: It consists of the employee's name, address, and identification number.Įmployer Information: This section includes the employer or company's name, address, and contact details.Įarnings: The paystub itemizes the employee's gross earnings for the given pay period, representing the total amount earned before any deductions. It is commonly issued by employers along with paychecks or direct deposit notifications. A pay stub, also referred to as a paycheck stub or pay advice, is a crucial document that provides comprehensive details about an employee's earnings and deductions for a specific pay period.
