- Mar 25, 2023
Paycheck Stub Common Mistakes to Look for
A paycheck stub is a document that lists the details of your pay for a specific pay period, including your gross pay, taxes, and deductions. Reviewing your paycheck stub to ensure all the information is correct and you’re being paid accurately is important.
However, mistakes can happen, and knowing what to look for when reviewing your paycheck stub is essential. In this blog, we’ll discuss common mistakes to look for on your paycheck stub.
Common Paycheck Stub Mistakes to Look for
Incorrect personal information
Your paycheck stub should contain your name, address, and social security number. Ensuring this information is correct is crucial, as errors can cause issues with your taxes and other documents. Ensure that your name is spelt correctly, your address is up to date, and your social security number is accurate.
Incorrect pay rate or hours worked
Your paycheck stub should list your pay rate and the hours you worked during the pay period. Ensure your pay rate is correct and you were paid for all your hours. If you’re a salaried employee, ensure your salary is correct, and you’re being paid according to your employment agreement.
If you worked overtime during the pay period, your paycheck stub should reflect the additional pay. Ensure that you were paid the correct overtime rate, typically 1.5 times your regular pay rate. Ensure that your employer complies with all federal and state laws regarding overtime pay.
Your paycheck stub should list the taxes withheld from your pay, including federal, state, and local taxes. Ensure that the amounts are correct and you’re being taxed at the correct rate. If you claim exemptions or allowances on your W-4, ensure they’re reflected on your paycheck stub.
Your paycheck stub may include deductions for various benefits, such as health insurance, retirement contributions, and other perks. Make sure that the deductions are accurate and that you’re not being overcharged. If you have questions about deductions, check with your HR department or benefits administrator.
Missing or incorrect bonuses or commissions
If you’re eligible for bonuses or commissions, ensure they’re reflected on your paycheck stub. Ensure that the amount is correct and that you received the bonus or commission for the correct pay period.
Incorrect vacation or sick time
If you’re eligible for vacation or sick time, ensure it’s reflected on your paycheck stub. Ensure you’re being paid the correct amount for the time you took off and that your balance is accurate.
Incorrect or missing reimbursements
If you’re eligible for expense reimbursements, ensure they’re reflected on your paycheck stub. Check to ensure that you were reimbursed for the correct amount and that it’s listed in the appropriate category.
Incorrect retirement plan contributions
If you’re participating in a retirement plan, check your paycheck stub to ensure the contributions are accurate. Ensure that you’re contributing the correct amount and that your employer matches the contributions as promised.
Incorrect loan repayments
If you have a loan with your employer, such as a 401(k) loan or a tuition reimbursement loan, check your paycheck stub to ensure the repayments are accurate. Ensure you’re paying the correct amount and the interest rate is correct.
If you have wage garnishments, such as child support or back taxes, ensure they’re reflected on your paycheck stub. Check to ensure the amount is correct, and you’re not being overcharged.
Missing or incorrect leave balances
If you’re eligible for leave, such as vacation, sick, or personal days, ensure your balance is accurate. Ensure you’re not being overcharged for leave taken or your balance isn’t negative.
Incorrect state unemployment insurance (SUI) contributions
If your employer must pay state unemployment insurance contributions, check your paycheck stub to ensure the contributions are accurate. Ensure that your employer is paying the correct amount and that you’re not overcharged.
Missing or incorrect employee benefits
If you’re eligible for employee benefits like health or life insurance, ensure they’re reflected on your paycheck stub. Ensure that you’re being charged the correct amount and that your coverage is accurate.
Missing or incorrect pay period dates
Your paycheck stub should list the pay period dates, including the start and end dates. Ensure that the dates are accurate and that you’re being paid for the correct pay period. The dates could affect your taxes and other calculations if the dates are incorrect.
Reviewing your paycheck stubs is crucial to ensure that you’re being paid accurately and that there are no mistakes. Common mistakes to look for include incorrect personal information, pay rate, hours worked, overtime pay, taxes, deductions, bonuses, commissions, and vacation or sick time. If you find any mistakes, contact your HR department or payroll administrator to have them corrected.