What is a pay stub?
Credit:ComstockStockbyteGetty Images
Q:

What is a pay stub?

A:

Quick Answer

A paycheck stub is the portion of a paper paycheck that the employee keeps after cashing their payroll check. Information typically included on the paycheck stub includes the number of hours worked, the amount paid to the employee, a breakdown of taxes paid and a list of various deductions.

 Know More

Full Answer

Paycheck stubs serve as proof of income and are often requested by various government agencies, lenders and landlords. Since they contain all income information including the total amount earned for the year, stubs are a reliable way to track salary, taxes paid, bonus information, insurance premiums, overtime pay and vacation pay. According to ClearPoint Financial Solutions, pay stubs include federal, state and local tax information.

Learn more about Income Tax

Related Questions

  • Q:

    What is federal tax withholding?

    A:

    Federal tax withholding is an amount held from a regular employee's paycheck that goes toward his federal tax obligation. The amount an employer withholds from each paycheck is based on information provided by a worker on a W-4 form, according to the Internal Revenue Service.

    Full Answer >
    Filed Under:
  • Q:

    What are IRS tax tables for Circular E?

    A:

    Employers use the tax tables in IRS Circular E to calculate an employee's federal tax withholding per paycheck, according to the Internal Revenue Service. Tax tables are designed to accommodate employees claiming up to 10 exemptions and differ based on pay period, whether weekly, bi-weekly, bi-monthly or monthly.

    Full Answer >
    Filed Under:
  • Q:

    Is severance pay taxable?

    A:

    According to Forbes, severance pay is taxable in the year in which the employee receives it. Prior to an employee receiving a severance check, the employer should take out appropriate state and federal taxes. Severance pay is reported on the employee's W-2 form, according to Turbo Tax.

    Full Answer >
    Filed Under:
  • Q:

    How much do employers pay in payroll taxes?

    A:

    Payroll taxes are shared by employer and employee, with the employer's portion amounting to a total of 7.65 percent for the 2013 tax year. Payroll taxes are made up of Social Security and Medicare taxes.

    Full Answer >
    Filed Under:

Explore