A pay stub contains essential information about an employee's earnings, deductions, and other payroll details. This information is crucial for understanding your pay, verifying tax withholding, and personal record- keeping.

Core components of a pay stub

Contact and employee details

• Employer's name and address
• Employee's name, address, and sometimes employee ID or social security number
• Pay period start and end dates
• Pay date

Earnings and hours

• Pay rate (hourly, salaried, overtime, etc.)
• Hours worked (regular, overtime, double time)
• Gross earnings (total income before deductions)
• Year-to-date earnings (cumulative earnings for the year)
• Total hours worked during the pay period
• For hourly employees, detailed breakdown of hours at different rates

Deductions and contributions

• Federal, state, and local taxes withheld (income tax, Social Security, Medicare)
• Employee contributions to benefits like health insurance or retirement plans
• Other deductions such as union dues or charitable contributions
• Employer contributions (such as part of health premiums or retirement match)
• Garnishments such as court-ordered child support

Net pay

• Take-home pay after all deductions
• Usually labeled as "Net Pay" or "Net Income"

Additional information

• Paid time off or accrued leave balances
• Piece-rate units earned (if applicable)
• Overtime or additional compensation details

Why it matters

Pay stubs serve as a document to verify earnings and deductions, assist with tax filings, and prove income for credit or loan applications. Employers are generally required to provide employees with this detailed breakdown to promote transparency and compliance.