Adding earnings and deductions

A pay stub is only as accurate as the numbers you enter. Here's how each field on the earnings and deductions screen works, and which ones change the calculated tax.

Earnings

Earnings are entered as separate line items so the finished stub itemizes them rather than showing a single lump sum:

• Regular pay — hours × rate for hourly employees, or the salary amount for the period for salaried ones.
• Overtime — usually 1.5× the regular rate. Enter overtime hours separately from regular hours so the premium is calculated and shown on its own line.
• Bonuses & commissions — added as their own line items. Keeping them separate matters because they're often taxed and reported differently from base wages.
• Holiday, PTO, and sick pay — entered as distinct earning types where you need the stub to show how the time was categorized.

Each earning type shows both the current amount for this pay period and the year-to-date (YTD) total. If this isn't the first stub of the year, fill in the YTD figures so the running totals stay correct.

Deductions

Deductions reduce gross pay to net pay. They fall into two groups, and the difference matters:

1. Pre-tax — health insurance premiums, 401(k) contributions, HSA and FSA deductions. These come out before tax is calculated, so they lower taxable income and reduce the tax withheld.
2. Post-tax — wage garnishments, Roth 401(k) contributions, union dues, charitable giving. These come out after tax, so they reduce take-home pay without changing the tax figures.

Entering a pre-tax deduction as post-tax (or the other way around) is the most common cause of a stub whose net pay looks slightly off. If the totals surprise you, check this first.

Taxes are automatic

You don't enter taxes manually. OakPaystubs calculates federal income tax, Social Security, Medicare, and state tax from the employee's work state, pay frequency, and the earnings and pre-tax deductions you've entered.

Because pay frequency determines how an annual tax rate is applied to a single period, a stub marked biweekly withholds a different amount from the same gross pay than one marked monthly. Both settings need to match how the employee is genuinely paid.

If a number looks off, check the pay frequency and work state first — those two settings affect every calculated amount.

Checking the totals

Before downloading, confirm that gross pay equals the sum of your earning lines, that deductions look right for the period, and that net pay matches what the employee actually received. The live preview shows all three as you type.

Common questions

What's the difference between pre-tax and post-tax deductions?

Pre-tax deductions come out before tax is calculated, so they lower taxable income and reduce the tax withheld. Post-tax deductions come out afterwards, so they reduce take-home pay without changing the tax figures.

Why is the calculated tax different from what I expected?

Pay frequency and work state drive the whole calculation. A stub marked monthly withholds differently from one marked biweekly on the same gross pay, so check both settings before anything else.

How do I add overtime?

Enter overtime hours separately from regular hours rather than folding them into the regular total. Overtime is usually 1.5× the regular rate and appears as its own line on the finished stub.

Do I need to enter year-to-date totals?

Only if this isn't the employee's first stub of the year. Entering YTD figures keeps the running totals on the stub accurate.

Can I add a deduction that isn't in the list?

Yes. Custom deduction lines can be added and labelled, and you choose whether each one is treated as pre-tax or post-tax.