How to Read Your Pay Stub: A Simple Line-by-Line Guide
Your pay stub explains exactly how your earnings became your take-home pay. Here is a simple walkthrough of the lines you are most likely to see.
1. Employee and employer information
The top of a pay stub usually identifies the employee, employer, pay period, and pay date. Check that the pay period is correct before reviewing the dollar amounts.
2. Gross pay
Gross pay is what you earned before taxes and deductions. For hourly workers, this section may show regular hours, overtime hours, hourly rate, bonuses, commissions, or other earnings.
3. Federal income tax withholding
This is the amount your employer withheld for federal income tax based on payroll calculations and the information you provided on your Form W-4.
4. Social Security tax
Social Security tax is a payroll tax withheld from employee wages up to the applicable annual wage base. It is separate from federal income tax.
5. Medicare tax
Medicare tax is another payroll tax. Some higher earners may also see additional Medicare withholding after wages cross the applicable threshold.
6. State and local taxes
If your state or local jurisdiction taxes wages, you may see separate state, city, county, or other local withholding lines.
7. Pre-tax deductions
These can include certain health-insurance premiums, HSA or FSA contributions, and some retirement-plan contributions. Depending on the deduction, it may reduce income subject to certain taxes.
8. Post-tax deductions
Post-tax deductions are taken after applicable taxes are calculated. Examples can include certain insurance premiums, union dues, charitable deductions, or wage garnishments.
9. Employer contributions
Your pay stub may also show amounts your employer contributes toward health insurance, retirement, or other benefits. These amounts may not be part of your take-home pay, but they can be valuable compensation.
10. Net pay
Net pay is the amount left after taxes and employee deductions. This is the amount that is generally deposited into your bank account or issued by check.
11. Year-to-date totals
Year-to-date, often shown as YTD, tells you how much you have earned or paid from the beginning of the year through the current paycheck. It is useful for checking trends and spotting unexpected changes.
| Pay-stub term | What it means |
|---|---|
| Gross pay | Earnings before taxes and deductions |
| Federal withholding | Estimated federal income tax withheld |
| FICA | Social Security and Medicare payroll taxes |
| Pre-tax deduction | A qualifying deduction taken before certain taxes |
| Post-tax deduction | A deduction taken after applicable taxes |
| Net pay | Your take-home amount |
| YTD | Total from the start of the year through this paycheck |
Compare your pay stub with an estimate
Use the Paycheck Calculator Hub calculator to estimate taxes and net pay, then compare the result with your actual pay stub.
Use the Paycheck CalculatorWhat should you do if something looks wrong?
- Confirm your hours, salary, overtime, bonus, or commission.
- Compare deductions with your benefit elections.
- Review your federal and state withholding selections.
- Check year-to-date totals for sudden changes.
- Ask payroll or HR about any line you do not recognize.
Bottom line
Your pay stub is a map of where your earnings went. Learning to read it makes it easier to catch payroll mistakes, understand your benefits, and predict your next take-home paycheck.