FAQ

A payroll stub shows specific details about an employee’s earnings and deductions for a particular pay period. It is mostly issued along with a check stub.

An employee’s paycheck stub is broken down into the following:

• Gross Earnings: The total amount had been earned by the employee before deductions like overtime had been made.
• Deductions: This section explains all deductions that are subtracted from employee pay, including taxes, social security contributions, Medicare, and retirement contributions.
• Net Pay: The amount the employee takes home after all deductions are made.
• Pay Period: The dates the employee is being paid for.
• Year-to-Date (YTD) Totals: This is the entire worth of the cumulative earnings and deductions by the year up to this point, which helps the employee keep track of how much he or she has earned versus how much has been deducted in taxes or other withholdings.

Employees find payroll stubs to be particularly convenient as they offer an at-a-glance view of how pay is computed and the creation of payment records for tax purposes, personal budgeting, and loan applications.

An individual can manage their payroll on his own without spending a penny but he has to have sound knowledge of the respective legal and tax obligations. To calculate employee pay, one needs to ascertain whether the person is hourly or salary-based.

For those on the hourly wage, the amount paid is derived by multiplying the number of hours the employee has worked in a particular duration by his average hourly rate. On the other hand, the salary-paid employee’s amount is calculated by dividing an annual salary by the pay periods in a year (usually depending on whether it is a weekly, bi-weekly, or monthly pay schedule).

Then, taxable deductions are included as income tax, social security, insurance, and other similar mandatory contributions. An interested party to these computations can check many online free payroll calculators that guide the appropriate tax rates according to different locations within the jurisdiction.

Make sure to track the tax withholdings and benefits in a neat and well-organized spreadsheet which prevents glaring errors in data entry.

To get a pay stub from your employer, check whether they even automatically provide it.

Most employers provide pay stubs with paychecks, either in printed or e-format. If your employer issues pay stubs electronically, they may do so through a payroll system or a company portal where you can log in to access pay information.

In case you still don’t get one or it is lost, the first step is usually to visit the HR department or the payroll administrator. You should request a physical copy or another electronic version if the company is engaged in digital record keeping. You need to request the pay stub at the earliest opportunity, especially if it is going to be used for personal record keeping or tax application, or loan request.