Your check stub is more than just a record of your paycheck—it’s a crucial financial document that shows your earnings, deductions, and taxes. Reviewing it carefully ensures that you’re being paid correctly and that there are no errors that could affect your taxes or benefits.
Unfortunately, many people overlook important details on their check stubs, which can lead to pay discrepancies, tax issues, or incorrect deductions.
In this guide, we’ll cover the most common mistakes people make when reviewing their check stubs and how to avoid them.
1. Not Checking Personal and Employer Information
One of the simplest but most important steps is verifying your personal information on your check stub. Errors in your details could cause problems with your taxes, Social Security benefits, or direct deposit payments.
What to Check:
✔️ Your name is spelled correctly
✔️ Your Social Security number (if included) is accurate
✔️ Your employer’s name and address are correct
✔️ Your employee ID number (if applicable) matches company records
💡 Tip: If any information is incorrect, notify your employer or HR department immediately to avoid payroll and tax complications.
2. Ignoring Your Pay Rate and Hours Worked
One of the most common payroll mistakes is incorrect wages. Whether you’re paid hourly or salaried, always confirm that your pay matches what you agreed upon with your employer.
What to Check:
✔️ Hourly employees: Verify your hourly wage and total hours worked.
✔️ Overtime pay: Ensure you’re receiving time-and-a-half (or double time, if applicable) for overtime hours.
✔️ Salaried employees: Confirm your paycheck reflects the correct salary amount for the pay period.
💡 Tip: If you notice discrepancies in your pay, contact HR or payroll before the next pay period to correct the issue.
3. Overlooking Overtime and Bonus Payments
If you work overtime or receive bonuses, it’s crucial to double-check that you were paid correctly. Employers sometimes miscalculate overtime pay or forget to include bonuses, leading to missing wages.
What to Check:
✔️ Overtime hours and rate (usually 1.5x your regular hourly rate)
✔️ Holiday pay or special shift differentials
✔️ Bonuses, commissions, or incentive pay
💡 Tip: Keep track of your own hours and compare them with your check stub to ensure accuracy.
4. Not Reviewing Tax Withholdings
Your employer withholds federal, state, and local taxes from your paycheck. If the wrong amount is withheld, you could owe more at tax time—or end up with a smaller refund.
What to Check:
✔️ Federal Income Tax (FIT): Based on your W-4 form selections.
✔️ State and Local Taxes: Some states don’t have income tax, but if yours does, ensure it’s being withheld.
✔️ FICA Taxes (Social Security & Medicare): These should be 6.2% for Social Security and 1.45% for Medicare.
💡 Tip: If your withholdings seem incorrect, update your W-4 form with HR to adjust your tax settings.
5. Forgetting to Check Pre-Tax and Post-Tax Deductions
Your check stub will include deductions for benefits like health insurance, retirement plans, and other withholdings. Some deductions are pre-tax, reducing taxable income, while others are post-tax, taken after taxes are applied.
What to Check:
✔️ Pre-tax deductions:
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Health, dental, and vision insurance premiums
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401(k) or retirement contributions
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Health Savings Account (HSA) contributions
✔️ Post-tax deductions:
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Wage garnishments
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Union dues
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Charity donations
