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In: Accounting

What are many deductions that you will see on a pay stub.

What are many deductions that you will see on a pay stub.

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Expert Solution

Pay stub is the document given by the employer to employee, explaining or providing the details of each component of salary. Salary includes various components like basic pay, allowances, perquisites, statutory deductions etc. Pay stub provides the break-up of salary.

Generally, following deductions are found in pay stub:

Income taxes – If employee is liable to pay income taxes, employer should deduct and remit to the government. Hence, income taxes are computed and deducted.

Employer contribution – Under various laws, employer is responsible to remit some amounts for the future welfare of employees. All such deductions along with the details are provided in pay stub, line-by-line.

Other Deductions – In addition to the above, generally employers provide facilities like insurance, canteen services in the office premises, etc. Deductions for these services, premium paid, etc. also form part of deductions section in pay stub.

ekkarill92 answered 1 year ago
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