How is a paycheck stub used in payroll reconciliation?

• A. It is compared against the payroll register and tax filings to verify accuracy.
• B. It is used to set employee salaries for next year.
• C. It is filed with W-2 forms.
• D. It determines overtime eligibility.

Answer: (A)

Paycheck stubs are a key piece of the reconciliation process because they provide a detailed, per-employee snapshot of what was earned, what was withheld, and what the employee actually received. When reconciling payroll, you compare the figures on the paycheck stub with the payroll register—the system’s overall record of wages, deductions, and net pay for the period—and with the amounts reported on tax filings. This cross-check confirms that each employee’s earnings, every deduction (federal and state withholdings, Social Security, Medicare, benefits, retirement contributions, etc.), and the final net pay add up correctly, and that the employer’s tax withholdings and liabilities are accurately reflected in filings. If discrepancies show up, you can pinpoint where adjustments are needed before deposits and reports are finalized. The paycheck stub isn’t used to set next year salaries, isn’t filed with W-2 forms, and doesn’t determine overtime eligibility.