How to Read Your North Carolina Pay Stub: Complete 2025 Guide

Payroll
August 27, 20259 min read

Understanding Your North Carolina Pay Stub

Your pay stub is one of the most important financial documents you receive, yet many North Carolina workers don't fully understand what all the numbers mean. Learning how to read your pay stub is essential for financial planning, catching errors, and understanding how your paycheck is calculated. Our NC Paycheck Calculator guide can help you understand how each component affects your take-home pay.

This comprehensive guide will walk you through every section of your North Carolina pay stub, explaining what each line item means, how deductions are calculated, and how to verify your pay stub is correct. Whether you're reviewing your first pay stub or want to better understand your current one, this guide will help you become an expert at reading your pay stub.

What Is a Pay Stub?

A pay stub, also called a paycheck stub or pay advice, is a document that accompanies your paycheck (or is provided electronically) that details how your pay was calculated. It shows your gross pay, all deductions, and your net pay (take-home pay). In North Carolina, employers are required to provide pay stubs to employees, though the format may vary by employer.

Pay stubs are important for several reasons:

  • Verification: You can verify that you're being paid correctly
  • Tax records: You need pay stubs for tax filing and financial planning
  • Error detection: You can catch mistakes in deductions or calculations
  • Budgeting: Understanding your deductions helps you budget accurately
  • Loan applications: Lenders often require pay stubs as proof of income

North Carolina Pay Stub Requirements

North Carolina law requires employers to provide pay stubs that include certain information. While the format may vary, pay stubs must include:

  • Gross wages for the pay period
  • Hours worked (for hourly employees)
  • Rate of pay
  • All deductions itemized by category
  • Net pay amount
  • Year-to-date totals for wages and deductions

If your employer doesn't provide this information, they may be violating North Carolina wage and hour laws. For more information about your rights as an employee, see our North Carolina Minimum Wage guide.

Understanding the Top Section of Your Pay Stub

The top section of your pay stub typically contains identifying information:

Employee Information

  • Employee name: Your full name as it appears in company records
  • Employee ID: Your unique employee identification number
  • Social Security number: Usually shown partially (e.g., XXX-XX-1234) for security
  • Address: Your mailing address on file

Pay Period Information

  • Pay period dates: The start and end dates for the current pay period
  • Pay date: The date you receive your paycheck
  • Pay frequency: Weekly, bi-weekly, semi-monthly, or monthly

Employer Information

  • Company name: Your employer's legal name
  • Employer ID number (EIN): The company's tax identification number
  • Company address: Your employer's address

Understanding Earnings on Your Pay Stub

The earnings section shows how much you earned before any deductions. This section may include:

Regular Hours and Pay

  • Regular hours: Hours worked at your regular rate (typically 40 hours per week)
  • Regular rate: Your hourly wage or salary divided by hours
  • Regular pay: Regular hours × regular rate

Overtime Hours and Pay

  • Overtime hours: Hours worked over 40 per week (typically)
  • Overtime rate: Usually 1.5 times your regular rate
  • Overtime pay: Overtime hours × overtime rate

For detailed information about overtime in North Carolina, see our North Carolina Overtime Calculator guide.

Other Earnings

  • Bonuses: One-time payments or performance bonuses
  • Commissions: Sales commissions or other commission-based pay
  • Holiday pay: Pay for holidays worked
  • Vacation pay: Paid time off
  • Sick pay: Paid sick leave
  • Tips: Reported tips (if applicable)

Gross Pay

Your gross pay is the total of all earnings before any deductions. This is the amount you earned, not what you'll take home. Gross pay includes:

  • Regular pay
  • Overtime pay
  • Bonuses
  • Commissions
  • Other earnings

Understanding Deductions on Your Pay Stub

Deductions are amounts taken out of your gross pay. They're typically divided into pre-tax and post-tax deductions:

Pre-Tax Deductions

Pre-tax deductions reduce your taxable income, which means you pay less in taxes. Common pre-tax deductions include:

  • 401(k) contributions: Retirement savings contributions (up to $23,500 in 2025)
  • Health insurance premiums: Medical, dental, and vision insurance
  • Health Savings Account (HSA): Contributions to HSA accounts (up to $4,300 individual or $8,550 family in 2025)
  • Flexible Spending Account (FSA): Healthcare or dependent care FSA contributions
  • Life insurance premiums: Group life insurance (up to $50,000 is typically tax-free)
  • Dependent care assistance: Pre-tax dependent care benefits

For more information about 401(k) contributions, see our 401(k) and Retirement Planning guide.

Tax Deductions

Tax deductions are mandatory taxes withheld from your paycheck:

  • Federal income tax: Withheld based on your W-4 form and tax brackets
  • North Carolina state tax: 4.25% of taxable income for 2025
  • Social Security tax: 6.2% of wages up to $168,600 in 2025
  • Medicare tax: 1.45% of all wages
  • Additional Medicare tax: 0.9% on wages over $200,000

For detailed information about North Carolina taxes, see our North Carolina Income Tax Calculator guide.

Post-Tax Deductions

Post-tax deductions don't reduce your taxable income but still reduce your take-home pay:

  • Roth 401(k) contributions: After-tax retirement contributions
  • Roth IRA contributions: After-tax IRA contributions (if done through payroll)
  • Life insurance premiums: Coverage over $50,000 is typically post-tax
  • Disability insurance: Additional disability coverage
  • Union dues: Union membership dues
  • Charitable contributions: Workplace giving programs
  • Wage garnishments: Court-ordered deductions (child support, tax levies, etc.)

Understanding Net Pay on Your Pay Stub

Your net pay, also called take-home pay, is what you actually receive after all deductions. It's calculated as:

Net Pay = Gross Pay - Pre-Tax Deductions - Tax Deductions - Post-Tax Deductions

This is the amount that will be deposited into your bank account or given to you as a check. For more information about calculating your net pay, use our NC Net Pay Calculator guide.

Understanding Year-to-Date (YTD) Totals

Year-to-date totals show cumulative amounts from the beginning of the year through the current pay period. This is important for:

  • Tax planning: Tracking how much has been withheld for taxes
  • 401(k) limits: Monitoring your retirement contributions
  • Social Security cap: Tracking when you hit the $168,600 limit
  • Budgeting: Understanding your total earnings and deductions for the year

Common Pay Stub Mistakes to Watch For

Here are some common mistakes to watch for on your pay stub:

Mistake 1: Incorrect Hours Worked

Make sure your hours match your time records. If you're hourly, verify that all hours are recorded correctly, including overtime.

Mistake 2: Wrong Pay Rate

Verify that your pay rate matches your employment agreement. If you received a raise, make sure it's reflected correctly.

Mistake 3: Missing Deductions

If you signed up for benefits or deductions, make sure they appear on your pay stub. Missing deductions could mean you're not enrolled properly.

Mistake 4: Incorrect Tax Withholding

If your tax withholding seems wrong, check your W-4 form. You may need to update it if your situation has changed. For help with your W-4, see our North Carolina W-4 Form Guide.

Mistake 5: Math Errors

Verify that all calculations are correct. Gross pay should equal the sum of all earnings, and net pay should equal gross pay minus all deductions.

How to Verify Your Pay Stub Is Correct

Here's a step-by-step process to verify your pay stub:

  1. Check your hours: Verify that hours worked match your time records
  2. Verify your pay rate: Make sure your rate matches your employment agreement
  3. Calculate gross pay: Hours × rate (or salary ÷ pay periods)
  4. Check pre-tax deductions: Verify all pre-tax deductions are correct
  5. Calculate taxable income: Gross pay - pre-tax deductions
  6. Verify tax deductions: Check that federal, state, and FICA taxes are correct
  7. Check post-tax deductions: Verify all post-tax deductions
  8. Calculate net pay: Gross pay - all deductions
  9. Compare to deposit: Make sure your net pay matches what was deposited

Understanding Your Pay Stub for Tax Filing

Your pay stub is important for tax filing because it shows:

  • Total wages: Your gross pay for the year (YTD)
  • Taxes withheld: Federal, state, and FICA taxes withheld
  • Pre-tax deductions: These reduce your taxable income
  • Retirement contributions: 401(k) and other retirement contributions

At the end of the year, you'll receive a W-2 form that summarizes this information. Your pay stubs can help you verify that your W-2 is correct.

Digital vs. Paper Pay Stubs

Many North Carolina employers now provide digital pay stubs instead of paper ones. Digital pay stubs:

  • Are accessible online through a portal
  • Can be downloaded and saved
  • Are more secure than paper stubs
  • Are easier to access from anywhere

If you receive digital pay stubs, make sure to save them regularly. You may need them for tax filing, loan applications, or other financial purposes.

Resources for North Carolina Workers

If you have questions about your pay stub or believe there's an error, here are some helpful resources:

Conclusion

Understanding your pay stub is essential for financial planning and ensuring you're being paid correctly. By learning what each section means, you can catch errors, verify deductions, and better understand your take-home pay. Regular review of your pay stubs helps you stay on top of your finances and catch issues early.

If you notice any errors on your pay stub, contact your employer's HR department immediately. For more information about calculating your paycheck, use our NC Paycheck Calculator and explore our NC Paycheck Calculator guide to understand how each component affects your take-home pay.