Working through a staffing agency means your paycheck comes from the agency, not the company where you work each day. This can make your pay stub look different from what you might expect. Taking a few minutes to understand what each line means helps you catch errors and manage your finances better.
Gross Pay vs. Net Pay
Gross pay is your total earnings before any deductions. Net pay is what you actually receive after taxes and other withholdings are taken out. The difference between these two numbers is normal, but if it seems unusually large, review each deduction line carefully.
Federal and State Tax Withholding
The agency withholds federal income tax based on the W-4 form you completed when you enrolled. State income tax is also withheld if your state has one. If you feel too much or too little is being withheld, ask the agency’s payroll department for a new W-4 to update your allowances.
FICA: Social Security and Medicare
These two deductions are mandatory for most workers. Social Security is withheld at 6.2 percent of your wages up to the annual wage base, and Medicare is withheld at 1.45 percent with no cap. These are not optional and go toward your future benefits.
Benefits Deductions
If you enrolled in health insurance, a retirement plan, or other benefits the agency offers, those premiums will appear as separate line items. Review your enrollment documents to confirm the amounts match what you agreed to pay.
Common Pay Stub Errors to Watch For
- Wrong pay rate — compare it to your offer letter or rate confirmation
- Missing overtime — hours over 40 in a workweek should be paid at 1.5 times your regular rate
- Incorrect hours — keep your own records and compare to the stub each pay period
- Deductions you did not authorize
What to Do If Something Looks Wrong
Contact the agency’s payroll department in writing as soon as you notice a discrepancy. Document the issue clearly, including the pay period and the specific line item in question. Most errors are resolved quickly once they are reported. Do not wait for the next pay cycle hoping it corrects itself.
Understanding your pay stub is a basic but important part of managing your temp work income. Keep copies of each stub for at least a year in case you need them for taxes or to resolve a dispute.