How to Read a Pay Stub in the State of California

Knowing how to read a pay stub can help prevent loss of money due to an accidental or intentional error, especially if your pay is deposited directly into your bank account. Here are some pointers on what to look for and how to understand those seemingly mysterious numbers and abbreviations that are included in the typical weekly pay stub in California.

Basic Building Blocks of a Pay Stub

Under California labor laws, every employee pay stub must contain the following information:

• Pay Period: the dates for which the worker is being paid.
• Gross Pay: this is the total amount for all hours worked before deductions for taxes, insurance, etc.
• Total Hours: for workers paid an hourly wage, the employer is required to list the total number of hours the worker was on the clock for the pay period in question (this does not apply for salaried employees).
• Hourly Rate(s): the amount of the hourly wage (for example, $15 per hour) must be listed on the stub. If there were varying rates – if the employee received overtime or a raise during the pay period covered – this information must be indicated.
• Deductions/Withholding: every worker employed on a W-2 basis has federal, and (if applicable) state income taxes deducted from their pay as well as taxes for Social Security and Medicare (listed under FICA). Additional deductions may include Workers Comp, unemployment insurance, medical/dental benefits, retirement contributions, child care, etc. All of these deductions must be itemized separately.
• Net Pay: This is more commonly known as “take home pay,” and is the amount the worker actually receives after taxes and other deductions
• Personal Identifying Information: Every pay stub must list information that identifies the payee, including name and last four digits of the worker’s social security number (or other identification number – for example, a guest worker from another country on an H-1B or L-1 visa)
• Employer Information: the name and address of the company, contractor or individual who hired the worker

How to Read Pay Stub: Where to Start

Understanding all of the above is an excellent place to begin when figuring out what is on your pay stub. This includes all of the standard financial and tax information that appears on all such documents. There may be other information proprietary to the specific employer; if you do not understand it, you can consult with someone in the human resources department.

Pay stub vs Paycheck

While learning how to read a pay stub, you may find terms such as “pay stub,” “pay slip” and “paycheck stub” used interchangeably. While these are indeed synonyms, the pay stub is distinct from the actual paycheck to which it is attached. You cannot deposit a pay stub without a paycheck, but you may be able to deposit your check without the stub. Keep in mind, however, that some banks do require that a pay stub be presented if you apply for a loan.

Keep Your Pay Stubs Safe

Generally, employees should keep pay stubs for one year, should they need to verify their income for any reason. These will also help you in keeping track of tax payments and deductions throughout the year and check them against your yearly W-2 statement.

Join a Free California Pay Stub Class Action Lawsuit Investigation

If you are a California worker and received a pay stub that was missing any required information, you may qualify to join this California paycheck stub class action lawsuit investigation.

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