A company paystub at a glance can get confusing. So many business boxes and complicated federal
acronyms to comprehend, all cramped within a specific pay period. Let’s explore the company
paystub anatomy to understand the pay stub further for your business. Below are some of the key
factors that you will be able to find on your paystub.
Employment details: This section will include all information pertaining to the
employer and employee. Company name, address, employee information, specific pay date, bank
account details, etc. are all mentioned here.
Employee Gross salary: This amount can be found on the employment contract of
employee. Gross salary is what the employer pays without mentioning the mandatory deductions
incurred. This is also known as base income on which the income tax is calculated by the
Pay Stub Federal Taxes: Unfortunately for the employee, an amount of the income
gets re-allocated to paying federal taxes. The amount is solely based on what the employee
has filled out in the W-4 form at the time of employment.
Pay Stub State taxes: Depending on the state the employee resides in, or where
the company is set up, there is a set of tariffs due that the employee needs to produce
from their income.
Employee Sick/Holiday pay: Any employee paid sick leave or company paid
days that the employee has accumulated will be mentioned here on the company paystub. This
helps both the employer and the employee keep track of how many off days were taken by the
employee and how much remains.
Company Local/Government Taxes: Companies and individual employees must stay
to date on the latest rules and regulations so as not to overpay to the government.
Some states impose a certain amount of income tax on the employee such as New York,
California, and Colorado to name a few.
Business Insurance & Company Benefit Deductions: Employee work benefits such
dental, vision, health insurance, etc are deducted directly from the salary paid by the
The more the employee benefits, the more they are likely to be satisfied with their job and
loyal to the company.
Employee Back Pay: In the event that an employer held back some money from
previous pay periods, for whatever reason, this is where an employee will notice them.
They could be money owed or reimbursed even. This is also a way to retain employees.
Employee Net Salary: This is the best part for an employee. This section refers
to the net salary amount, that is the employee take-home pay after all the deductions and
have been taken out of a company pay stub.