The Anatomy of an Hourly Pay Stub
Hourly pay stub line items and what to verify on each
| Line Item | What It Means | What to Check |
|---|---|---|
| Regular Hours | Hours at your base rate | Matches your time records? |
| Overtime Hours | Hours beyond 40 at 1.5× | Correctly separated from regular? |
| Regular Earnings | Regular hrs × base rate | Math correct? |
| OT Earnings | OT hrs × 1.5× rate | Correct rate applied? |
| Gross Pay | Total before deductions | Matches hours × rate? |
| Federal Income Tax | Withholding based on W-4 | Reasonable for income level? |
| Social Security Tax | 6.2% of gross wages | Correct percentage? |
| Medicare Tax | 1.45% of gross wages | Correct percentage? |
| State Income Tax | State withholding | Correct state rate? |
| Health Insurance | Your premium share | Matches enrollment? |
| 401(k) Contribution | Your elected percentage | Matches election? |
| Net Pay | What’s deposited | Cross-check with bank? |
| YTD Gross | Year-to-date total earnings | On track for annual goal? |
Common Pay Stub Errors and How to Spot Them
Pay errors are more common than most workers realize. A 2017 Ernst & Young survey found that 54% of payroll professionals reported making payroll errors. Common mistakes include: incorrect overtime calculation, wrong withholding after a W-4 update, missed shift differential, or deducting benefits premiums at old rates after a plan change.
Your overtime rate should be exactly 1.5× your regular hourly rate. If you earn $24/hr, overtime should show $36/hr. Some employers mistakenly apply the premium to a blended rate that includes other compensation — verify each pay period that overtime rates match your contract.
Using YTD Figures to Project Annual Income
Year-to-date (YTD) figures appear on every pay stub. Divide YTD gross by the number of pay periods elapsed to find your average pay per period. Multiply by the total pay periods in the year to project annual income. This is especially useful for variable-hours workers who want to track whether they’re on pace for their income target.
What to Do If You Find a Pay Error
Document the error with your time records and pay stub. Report to your HR or payroll department in writing (email creates a paper trail). Under FLSA, employers must correct underpayments — and there’s no statute of limitations for collecting owed wages in the current pay period. If the employer refuses to correct errors, contact the Department of Labor Wage and Hour Division.
Verify Your Pay Against Your Hourly Rate
Enter your rate and hours to cross-check your gross pay against your pay stub.