Your share of the monthly health insurance cost, usually deducted pre-tax.
Common paystub code: MED / DENTAL / VISION
Health insurance premiums are the monthly cost of your medical coverage, shared between you and your employer. Most employer-sponsored plans deduct your share pre-tax through a Section 125 cafeteria plan, which reduces your taxable income. The average employee contribution for single coverage is about $130/month; family coverage averages about $550/month. Common codes on your paystub include MED, DENTAL, VISION, or the specific plan name.
On a typical US paystub, health insurance premium information appears in one of three sections — the earnings summary, the deductions list, or the year-to-date (YTD) totals — depending on the type of item. Understanding where to find it helps you verify accuracy, catch payroll errors, and prepare for tax season or loan applications.
Whether you receive a digital paystub through your employer's payroll system (such as ADP, Gusto, QuickBooks Payroll, or Paychex) or a traditional paper stub, the information for health insurance premium is required by federal labor law to be itemized and accurate. The Fair Labor Standards Act (FLSA) and state-specific wage transparency laws mandate that employees can review and verify each line of their paystub.
Accurate knowledge of health insurance premium is essential for several real-world scenarios common to US workers: when applying for an apartment rental (landlords typically require recent paystubs as proof of income), when applying for a car loan or mortgage (lenders verify gross and net pay across multiple paystubs), when filing your annual tax return (IRS Form 1040 reconciles to your year-to-date W-2 or 1099 totals), and when changing jobs (you may need to provide last paystubs to your new employer for benefits eligibility verification).
If you spot an error related to health insurance premium on your paystub, US labor law requires your employer to investigate and correct the issue. The American Payroll Association reports that nearly 75% of US workers will experience at least one payroll error during their career, which is why understanding each line item — including health insurance premium — is one of the most valuable financial literacy skills you can develop.