Sample Paycheck Stub

Why Are Pay Stubs So Important?

Employees may need to use paycheck stubs for things like loans and assistance applications. Paycheck stubs can help employees keep track of hours and budget expenses. They also help the employer by making sure employee information is correct. Some employers add a line on the pay stub stating it is the employees’ responsibility to inform them if there are any changes that should be made such as address and withholding information. That way it is on every single paycheck stub and it cannot be said the employee was not informed of their responsibility.

Some common abbreviations used on paycheck stubs:
Gross - Earnings before deductions
Net - Earnings after deductions
Current - Pay period earnings
YTD - Year-To-Date
REG - regular hours worked
OT - overtime hours worked
HOL - holiday hours worked
VAC - vacation time paid
SICK or FL - sick or family leave time paid for
FICA - Employee’s portion of Social Security paid
FICA-MED - Medicare deductions
SWT or Fed - Federal withholding Income Tax deductions
SWT or State - State Tax withheld
LT or Local Tax - County and/or City Tax deductions
WC or Work Comp - workman's comp contribution, usually paid by employer
INS or MED - insurance or medical savings account deductions
Life - life insurance deductions
401K or Ret - tax deferred retirement contribution
Garnish - garnishment being taken from employee’s check due to money owed
Gross Pay - the amount of money you make before deductions

Sample Paycheck Stub

A sample paycheck stub shows examples of what would be on an employee’s pay stub. Some deductions are taken before taxes such as insurance and 401(k). These would be deducted from the gross wages before deducting taxes. After tax deductions would be things like donations made through a company fundraiser or garnishments where the employee is still obligated to pay taxes on these deductions from their gross pay and take a deduction for some on their own personal income tax filings.

It is important to keep track of regular, overtime, sick, and vacation pay as it is taxed differently on company year-end returns. It is also necessary to record current and year-to-date (YTD) information. As this example is the employee’s first paycheck of the year, they are the same.

Do not print the employee’s full Social Security Number or bank account number on the paycheck stub. Employers must pay a percentage of the employee’s wage for FICA and Medicare. Some employers add a section listing these employer paid taxes. This sample paycheck stub will be helpful in deciding what should be on the employee’s pay stub, but each state may have other deductions that need to be tracked. Check with your local state taxing authority to find out more.

Continued Payroll Definitions
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