Your pay stub explains the gap between what your employer says you earn and what lands in your bank account. For North Carolina workers in 2026, that gap is made up of federal income tax, NC's 3.99% flat income tax, Social Security and Medicare, and whatever benefits and retirement contributions you have elected. This guide walks through each section of a typical NC pay stub, shows a full worked example, and explains how to check that every line is right.
A Sample North Carolina Pay Stub, Line by Line
It is easier to read your own stub once you have seen one worked through. The example below is a single worker in Raleigh earning $60,000 a year, paid every two weeks, who puts 5% into a 401(k) and pays $150 per paycheck for health insurance.
The Example
| Line | This Paycheck | How It Is Figured |
|---|
| Gross pay | $2,307.69 | $60,000 ÷ 26 pay periods |
| 401(k) contribution (5%) | −$115.38 | 5% of gross pay |
| Health insurance premium | −$150.00 | Employee share, pre-tax |
| Federal income tax | −$161.23 | On $2,042.31 of taxable wages |
| NC income tax | −$63.47 | On $2,042.31 of taxable wages |
| Social Security (6.2%) | −$133.78 | On $2,157.69 of FICA wages |
| Medicare (1.45%) | −$31.29 | On $2,157.69 of FICA wages |
| Net pay | $1,652.54 | Deposited to your account |
The tax figures are approximate. Your employer's payroll system uses IRS and NC withholding tables that can differ by a few dollars from this calculation.
Why There Are Two Different Wage Figures
Notice that income tax and FICA are calculated on different amounts. Income tax applies to $2,042.31, which is gross pay minus both the 401(k) contribution and the health premium. Social Security and Medicare apply to $2,157.69, which is gross pay minus only the health premium. That is because 401(k) contributions escape income tax but are still subject to FICA. Many stubs show these as separate lines labeled something like "federal taxable wages" and "FICA wages" or "Medicare wages."
What This Worker Keeps
Out of $2,307.69 in gross pay, $1,652.54 reaches the bank, or about 72 cents on the dollar. Taxes take $389.77, and the remaining $265.38 goes to the worker's own retirement account and health coverage. To see the same breakdown for your own salary and deductions, use the NC paycheck calculator on our homepage.
The Header: Pay Period and Employee Information
The top of the stub carries no dollar amounts, but mistakes here cause problems later, especially at tax time.
What the Header Shows
Expect to find your name and employee ID, the last four digits of your Social Security number, the start and end dates of the pay period, the pay date, and your employer's legal name. Check that your name and Social Security number match your Social Security card. A mismatch can delay your tax refund when the W-2 does not line up with IRS records.
Pay Period Versus Pay Date
The pay period is the stretch of work being paid. The pay date is when the money is issued, usually several days to a week later. The pay date is what matters for taxes. Wages paid in January 2027 for work done in late December 2026 count as 2027 income, and 401(k) contributions follow the same rule.
Why Pay Frequency Changes the Numbers
The same salary produces different paychecks depending on the schedule. A $60,000 salary is $2,500.00 per check on a semi-monthly schedule of 24 pay periods, and $2,307.69 per check on a biweekly schedule of 26. Biweekly workers get two months each year with three paychecks. Fixed deductions such as insurance premiums are sometimes skipped on that third check, which makes it larger than usual.
Earnings: Gross Pay and How It Is Built
The earnings section lists every type of pay you received this period. Gross pay is the total before anything is taken out.
Regular Pay
For salaried workers, this is annual salary divided by the number of pay periods. For hourly workers, it is your hourly rate multiplied by the hours worked, up to 40 in a week. Compare the hours on your stub to your own records every period, and check the rate after any raise. A raise applied one pay period late is one of the most common payroll errors.
Overtime Pay
Hours over 40 in a workweek must be paid at one and a half times your regular rate. North Carolina follows the federal rule, and it is based on the week, not the day. Overtime should appear as its own line with its own rate and hours. If you worked more than 40 hours and see no overtime line, ask payroll. Our NC overtime calculator guide shows how to check the amount, and the NC overtime laws guide covers who is exempt.
Bonuses, Commissions, and Other Pay
Bonuses, commissions, shift differentials, holiday pay, and vacation payouts each get a separate line. There is no special bonus tax, but employers usually withhold federal tax on bonuses at a flat 22%, which is why a bonus check can look heavily taxed. The difference is settled when you file your return. Our NC bonus tax guide explains the withholding methods.
Pre-Tax Deductions: What Lowers Your Taxable Income
Pre-tax deductions come out of gross pay before income tax is calculated. They are the main tool you have for lowering the taxes on each paycheck.
Common Pre-Tax Deductions and 2026 Limits
| Deduction | 2026 Limit | Reduces Income Tax | Reduces FICA |
|---|
| 401(k) or 403(b) contribution | $24,500 ($32,500 at 50+) | Yes | No |
| Health, dental, vision premiums | No IRS limit | Yes | Yes |
| Health Savings Account (HSA) | $4,400 self-only / $8,750 family | Yes | Yes |
| Health care FSA | $3,400 | Yes | Yes |
| Dependent care FSA | $7,500 per household | Yes | Yes |
How Much Each Dollar Saves
Every pre-tax dollar lowers both your federal and your NC taxable income. For a worker in the 12% federal bracket, $1,000 in pre-tax deductions saves about $160 in income tax, made up of $120 federal and $40 for NC. In the 22% bracket the savings are about $260. Deductions that also avoid FICA, such as insurance premiums and HSA contributions, save a further $76.50 per $1,000. Our NC 401(k) guide and NC HSA guide cover each account in detail.
Mandatory Retirement Contributions for Public Employees
Teachers, state employees, and most local government workers in NC will see a line for TSERS or LGERS. These are the state and local pension systems, and the employee contribution is a mandatory 6% of pay. It is taken pre-tax for income tax purposes, so it lowers your federal and NC withholding the same way a 401(k) contribution does, but it is still subject to Social Security and Medicare.
Taxes: Federal, North Carolina, and FICA
This is usually the largest block of deductions and the one worth understanding best.
Federal Income Tax
Federal withholding is based on the Form W-4 you gave your employer and the IRS withholding tables. The federal system is progressive. In 2026 a single filer pays 10% on the first $12,400 of taxable income, 12% up to $50,400, and 22% up to $105,700, after a $16,100 standard deduction. Only the income within each band is taxed at that band's rate. If the amount withheld looks too high or too low, submit a new W-4. Our NC W-4 guide walks through the form.
North Carolina Income Tax
North Carolina taxes income at a flat 3.99% in 2026, and the rate falls to 3.49% in 2027. Employers do not simply multiply your wages by 3.99%. The state's withholding formula first subtracts the NC standard deduction, $12,750 a year for most filers, and $2,500 for each allowance you claimed on Form NC-4. It then applies a withholding rate of 4.09%, which is the tax rate plus a small cushion of one tenth of a percent required by state law. There is no city or county income tax anywhere in NC. The NC standard deduction guide explains the deduction amounts by filing status.
Social Security and Medicare
These two payroll taxes are often grouped as FICA. Social Security is 6.2% of wages up to $184,500 in 2026. Once your year-to-date wages pass that figure, the deduction stops for the rest of the year. Medicare is 1.45% of all wages with no cap, and an additional 0.9% is withheld on wages above $200,000. Your employer pays a matching 6.2% and 1.45% that does not appear in your deductions. Your W-4 has no effect on these taxes.
Post-Tax Deductions, Net Pay, and Year-to-Date Totals
The bottom of the stub shows what comes out after taxes, what you take home, and your running totals for the year.
Post-Tax Deductions
These come out after taxes are calculated, so they reduce your take-home pay without lowering your tax bill. Common examples are Roth 401(k) contributions, wage garnishments for child support or unpaid debts, union dues, and charitable giving through a workplace program. You may also see a small taxable amount added for employer-paid life insurance coverage above $50,000. That is not a deduction. It is the value of a benefit that the IRS counts as income.
Net Pay
Net pay is gross pay minus pre-tax deductions, taxes, and post-tax deductions. It should match your direct deposit to the cent. If you want to estimate it before a pay change takes effect, our NC net pay calculator guide explains the calculation step by step.
Year-to-Date Totals
Every line has a year-to-date column showing the total since January 1. Three of these are worth watching. Your retirement contributions should not exceed $24,500 for the year, or $32,500 if you are 50 or older. Your Social Security withholding should stop once your wages pass $184,500. And your federal and state tax withheld should be on pace to cover what you will owe. A quick comparison with last year's tax return tells you whether you are headed for a large refund or a bill. Our guide to year-end tax moves covers how to fix a shortfall before December 31.
How to Catch Errors on Your Pay Stub
Payroll errors are common enough that a two-minute check each pay period is worth the time.
Check Hours, Rate, and Deductions
Confirm that hours and pay rate are right, that overtime is paid at time and a half, and that each benefit you enrolled in shows up once. A missing deduction can mean you are not actually enrolled in the benefit. A deduction that appears twice should be reported right away. Also check after open enrollment that your new elections took effect in January.
Check the NC Withholding
You can test the state tax line yourself. Take your taxable wages for the pay period and multiply by the number of pay periods in the year. Subtract $12,750, or $19,125 if you file as head of household, and $2,500 for each allowance on your NC-4. Multiply the result by 4.09% and divide by the number of pay periods. In the example above, that is $53,100 minus $12,750, times 4.09%, divided by 26, or $63.47. If your stub is far from the result, review your NC-4 for extra withholding or allowances you did not intend.
Know Your Rights and Report Problems in Writing
The North Carolina Wage and Hour Act requires employers to give each employee an itemized statement of deductions for every pay period in which deductions are made. If something is missing or unclear, you are entitled to ask. Report errors to payroll or HR by email so there is a record, and keep a copy of the stub. Unresolved wage problems can be reported to the NC Department of Labor. Our NC labor laws guide covers the wage payment rules.
Frequently Asked Questions
Why is my first paycheck smaller than expected?
Usually for one of three reasons. Your first check may cover only part of a pay period, so gross pay is lower. Benefit premiums may be taken in full even for a partial period, or doubled to catch up. And if your W-4 had not been processed yet, your employer must withhold as if you were single with no adjustments, which is often more than you owe. Check the pay period dates and the deductions before assuming something is wrong.
Why did my NC withholding change when I did not change anything?
North Carolina's tax rate has been falling, and employers update their withholding each January. The rate was 4.5% in 2024, 4.25% in 2025, and 3.99% in 2026, and it drops to 3.49% in 2027. A slightly smaller NC deduction on your first paycheck of the year is the rate cut taking effect. Changes in benefit premiums at the start of a plan year can also shift your taxable wages.
Does the federal deduction for overtime and tips show up on my pay stub?
Not as lower taxes on each check. Federal law lets many workers deduct some overtime and tip income for tax years 2025 through 2028, but the deduction is claimed when you file your federal return. Social Security and Medicare still apply to that pay. North Carolina did not adopt these deductions, so overtime and tips remain fully taxable on your NC return.
How do I match my last pay stub to my W-2?
The year-to-date figures on your final stub of the year should agree with your W-2. Federal taxable wages match Box 1, Social Security wages match Box 3, Medicare wages match Box 5, and NC wages match Box 16. Box 1 will be lower than your gross pay if you made pre-tax contributions. If the numbers do not agree, ask your employer for a corrected W-2 before you file. Our NC tax refund guide explains what happens after you file.
