Understanding the information on your paystub as an employee is crucial to managing your money. However, understanding the paystub deduction is even more important as it constitutes the difference between your gross pay and net pay.

Paystub deductions are wages withheld from an employee’s total earnings for the purpose of paying taxes, garnishment and benefits. It can be a mandatory or voluntary deduction. Each deduction is processed each pay period based on the tax laws and withholding information supplied by a court order or your employees.

Without further ado, let’s explore the major paystub deductions made on your pay stub check  

  • Federal income tax

This is a mandatory deduction by the government for every citizen to pay for public programs and maintenance of several areas of the governance of the country.

  • State and local income tax (SALT) 

Unlike the federal income tax, the state tax is on the state level. It is required to manage the expenses in the state. Each state’s tax varies; some states don’t levy income tax and some charge very little. You should consult with the state government you operate in. 

The same goes for your local city, if your city imposes on income tax, set free time to research it. 

  • Federal insurance contribution Act (FICA)

FICA taxes contribution support Social Security and Medicare. Medicare is a federal health insurance program. It currently stands at 7.65% per paycheck. As an employee, you’ll be required to pay 6.2% for social security tax and 1.45% for Medicare tax. 

  • Court order payment 

This paystub deduction can also be called wage garnishment. Wage garnishment are orders from a court of law, regulatory agencies, or IRS that require you to pay off overdue debt like child support, student loans, defaulted loans, alimony, and other monetary fines. 

  • Other deduction:

Other pay stub deductions could be voluntary, it is not backed by law. As an employee, you may choose to not pay it. These deductions include Health life and disability insurance, union dues, Roth IRA retirement plan, and donation to charity. 

This deduction is usually deducted post-tax when all other compulsory required taxes have been withheld. 


As an employee, you can take charge of the process to generate an accurate paystub using technology. An online paystub generator presents you with the advantage of automation, fewer errors and duplications leaving you with more time to cater to other things. 

Get started now! Start making paystubs for you and your employees now using our Real Check Stubs paystub maker.