Checking Your Check : Why Employees Need to Read Their Pay Stubs

Every time you get paid, you should read your employee pay stub. Check out this guide to learn why you need to read your employee pay stub.

There are about 155.76 million people employed in the United States.

Out of all of those employed, the majority receive a pay stub, but they might not all understand what all the fields mean.

In this article, we'll go over why it's important to understand your employee pay stub.

Check for Correct Earnings

The first reason why all employees need to read their pay stubs is to go over their earnings.

We're humans and make mistakes, so it's not uncommon for a few mistakes to happen here and there. If employees are hourly, they should verify the employer entered the correct number of hours.

Although salaried employees don't have that issue because their hours default 40 hours, it's a good idea to stay on top of their pay stub for any changes.

Taxes and Other Withholdings

Although not many people know what this means, employees need to stay on top of any taxes and withholdings on their pay stub.

Whether you like it or not, you have to pay your tax obligations. It's not uncommon for there to be a few errors in how much tax gets withheld.

If you notice not a lot of money is going towards your withholdings, there might be a problem. The last thing you want to do is deal with issues come tax season.

For federal tax, the amount taken out of your check depends on how many allowances you make on your W-4 form. The more allowances you claim, the less money will be withheld.

There are a few states that require you to pay state income taxes. You will most likely see this on your check.

All Americans are also required to contribute to Social Security and Medicare. As far as Social Security, employees need to contribute 6.2% of their gross into.

For Medicare, every working American has to contribute 1.45% of their gross income.

Benefits and Other Deductions

If employers offer benefits such as 401k, dental, health, vision, or others, a summary of the benefits will be listed on the pay stub.

It's important that employees learn how to interpret what their benefits are and how they affect their paychecks.

Places such as can help generate a pay stub that displays all of the benefits for employees to review.

Track Paid Time off

It's also important for employees to understand their time off and keep track of it.

If they took time off during a payroll period, they need to verify it once they get their pay stub to make sure it matches their records.

Not only should they make sure is reflected in their pay, but they need to know how much time off remains.

Why Employee Pay Stub Understanding Is Essential

It's important to share with all employees the importance of employee pay stub understanding.

When employees understand what they're looking for in their pay stub, they will have a better understanding of how their wages are broken down, their benefits, and tax withholdings.

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