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.

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What is a pay stub?
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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.

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Related Questions

  • Q:

    Can I file my taxes with my last paycheck stub?

    A:

    Employees that have received an incorrect Form W2 or have not received a W2 from their employers by February 15th may use a paycheck stub to determine income and withholding information. However, obtaining a W2 is always preferable as pay stubs may not contain all the necessary tax information.

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  • 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.

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  • 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.

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  • Q:

    What percentage of taxes are taken out of your paycheck?

    A:

    The percentage of taxes taken out a paycheck depends heavily on the employee's federal, state and local tax brackets for income and filing status, as well as the employee's withholding declaration on the W-4 form, notes Sure Payroll. Furthermore, all employees also have to pay 6.2 percent for Social Security taxes and between 0.9 and 2.35 percent for Medicare taxes, as of 2015, notes the University of Texas at Austin.

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