Reviewed September 29, 2026. This guide explains payroll records; examples are fictional and are not individual tax or legal advice.
A paystub can show what your employer contributes toward benefits as well as what comes out of your wages. Adding every number in a benefits section and subtracting that total from gross pay can make a correct statement look wrong. First identify who paid each amount and what the column represents.
Employee deductions affect a different side of the record
An employee deduction is an amount taken from the employee’s pay, subject to the applicable arrangement and rules. An employer contribution records money the employer provides. Some statements display these amounts side by side; others put employer-paid items in a separate informational section.
Labels such as EE and ER often refer to employee and employer, but confirm the provider’s legend rather than relying on the abbreviation alone. Also check whether you are reading the current-period column or a year-to-date total. A large cumulative figure is not necessarily this paycheck’s deduction.
A retirement-plan example
The IRS distinguishes employee elective deferrals from employer matching and nonelective contributions. The plan’s terms determine its contribution arrangement. A matching contribution is not simply another employee deduction, and its timing should be checked against the plan and account records.
Suppose a fictional statement shows an employee retirement deduction of $100 and an employer contribution of $50. The employee deduction is the $100 figure; subtracting $150 from cash pay would incorrectly treat the employer’s contribution as another employee deduction. This example addresses the two columns, not tax treatment, eligibility, vesting, contribution limits, or the timing of a plan deposit.
Keep employer cost separate from taxable value
An informational employer-cost figure and imputed income are not interchangeable. A statement might disclose the employer’s benefit cost, while a different line records a taxable noncash value. IRS Publication 15-B describes benefit-specific exclusions and tax treatment. Do not infer taxable wages simply by totaling the employer-paid column.
If a benefit appears in more than one area, ask payroll to identify each line’s purpose. One may be an employer contribution, another the employee’s share, and another a reporting adjustment. A similar label does not make them duplicate charges.
Use a line-by-line review
- Start with cash earnings for the current payment.
- Identify employee taxes and employee deductions that affect take-home pay.
- Set employer-paid informational items aside while reconciling cash.
- Investigate noncash taxable items and offsets separately.
- Compare the resulting payment with the actual payment record.
Do not treat this checklist as a universal calculation formula. Reimbursements, split deposits, adjustments, and other payment arrangements may need their own lines. Its purpose is to prevent company-paid amounts from being subtracted from your wages a second time.
Ask for the right supporting record
For an unexplained employee deduction, request the election or authorization and its effective date. For a missing employer contribution, ask for the contribution schedule and the relevant plan or benefit record. Preserve the answer with the original paystub. A paystub entry alone does not demonstrate that a retirement contribution has reached the account; compare the provider’s records as well.
Sources and further reading
Related paystub guides
Prepare a paystub from accurate payroll records
When you have verified the payroll figures, open the PayStubPro generator to format your document. Paystubs cost $1 each with a $2 minimum order total: one or two cost $2, three cost $3, and ten cost $10. W-2 and 1099 forms are priced separately. A generated document does not prove payment or guarantee acceptance. Explore the paystub guide and payroll resource library for related help.