A pay stub is a document your employer gives you with each paycheck that breaks down your earnings and deductions. It shows your gross pay (total earnings before deductions), all mandatory and optional deductions, and your net pay (what actually goes into your bank account). Understanding your pay stub is essential for tracking your income, verifying deductions are correct, and planning your taxes. Your pay stub is your first line of defence against payroll errors. It's where you can spot problems before they appear on your T4 at tax time. If your employer withholds the wrong amount for income tax, CPP, or EI, catching it early gives you time to ask for a correction. Pay stubs also help you track how much you've earned year-to-date, which is useful for understanding your tax bracket and planning RRSP contributions. When you file your tax return, the CRA will compare what your employer reports on your T4 to what you've already paid in deductions. If everything on your pay stubs is accurate, your tax filing should go smoothly. Every pay stub has three core sections: Earnings Section This shows all the money you made during the pay period.
Gross pay is your total earnings before any deductions. Net pay is what remains after taxes, CPP, EI, and other deductions are removed. Your net pay is what actually deposits to your bank account.
If you're paid biweekly or monthly, your deductions may vary slightly due to rounding or changes in hours worked. Year-to-date totals are more accurate for tracking your annual picture. If deductions suddenly change dramatically, contact payroll to verify.
You can adjust your tax exemption by submitting a new TD1 form to your employer, but claiming too many exemptions may result in owing taxes at year-end. Only claim exemptions you're legally entitled to.
Contact your employer's payroll department immediately with the details of the error. They are required to correct their records and issue a revised pay stub if needed. Keep documentation of the error for your records.
Check your year-to-date totals against the 2026 maximum pensionable earnings for CPP and maximum insurable earnings for EI. Once you hit these limits, deductions should stop. The CRA website publishes these limits annually.