What is a Pay Stub?
A pay stub is a document provided by an employer that details a worker's gross wages, deductions, and net pay. Pay stubs are produced in accordance with paychecks, so each worker receives a new one each pay period.
The Pay Stub displays the totaling of the payments an employee earns, deductions made, and take home salary, along with all applicable allowances.
What is earned by an employee?
- Routine Wage(s) [salary: Hourly/weekly/monthly/etc.]
- Ailment(s) payments
- LTAs/STAs – Long Term / Short Term Advances from the Salary
- Payments of Holidays
- Allowances [included in salary: medical, housing, utility, transport, project allowances as per job conditions]
- Bonus, if any
- Vacation(s) pay
What types of deductions are included in the Pay Stub?
- Local, State(s) and Federal Taxes
- Social Security
- Retirement Plan(s), as many as opted for / available
- Loan installments deductions
- Charity payments