The gross pay refers to the total earnings before deductions, while the net pay shows employee wages and salaries after taxes, deductions for benefits such as health insurance and retirement, and other remunerations are withheld from their gross pay. Pay stubs also indicate both the gross pay and net pay of each employee. For salaried employees, the pay stub declares their total earnings equivalent to a specific pay period. The paystub indicates each employee’s pay rate, and it is applicable to both salaried and hourly employees.įor hourly workers, the number of hours they’ve worked is enumerated on the pay stub. A paystub is a document that reflects the total amount of earnings, tax withholdings, and deductions on employee salaries and wages.
