A pay stub packs a lot into a few square inches: abbreviations, two columns of numbers and a total at the bottom that is almost always smaller than you hoped. Most people check the deposit amount and move on. That is fine until something is wrong, and by then you have missed a few paychecks of evidence.
This guide walks through a stub from top to bottom, explains what each line means, and uses one worked example so the numbers actually add up. It is for employees paid on a W-2. If you are an independent contractor, nobody withholds tax for you and a stub like this does not apply.
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The 30-second check
If you only have half a minute, look at three things:
- Pay period and hours. Do the dates and the hours (or salary) match what you actually worked?
- Gross pay and net pay. Gross is what you earned. Net is what lands in your account. The gap between them is the rest of this article.
- Year-to-date (YTD) totals. These are running totals since January 1. They are the easiest way to catch a mistake that repeats every paycheck.
The parts of a pay stub, in the order you will usually see them
1. Employer, employee and dates
The top of the stub names the employer, you, and sometimes an employee ID. Two dates matter: the pay period (the days the check covers) and the pay date (when the money moves). Employers often pay a week or so after a period ends, which is why your first check at a new job can feel late.
2. Earnings
This section lists how your gross pay was built. Salaried employees usually see one line. Hourly employees see hours times rate, plus separate lines for overtime (often labeled OT, commonly paid at 1.5 times your regular rate for hours over 40 in a week if you are a non-exempt employee), bonuses, commissions, tips or shift differentials. The total of these lines is your gross pay.
3. Pre-tax deductions
These come out of your gross pay before income tax is calculated, so they lower the wages your federal tax is based on. Common ones are traditional 401(k) contributions, employer health, dental and vision premiums, HSA and FSA contributions, and commuter benefits.
4. Taxes withheld
This is the block that usually surprises people. It normally has four kinds of lines: federal income tax, Social Security, Medicare, and state income tax. Some stubs also show local tax or a state disability or paid-leave program. More on each below.
5. Post-tax deductions
These are taken after taxes, so they do not reduce your taxable pay. Examples are Roth 401(k) contributions, union dues, charitable payroll giving and court-ordered wage garnishments such as child support.
6. Net pay
Gross pay minus taxes minus all deductions. If you split your deposit between accounts, the stub usually shows each amount and a masked account number at the bottom.
7. Employer-paid items and time off
Many stubs list things you did not pay for: your employer's share of payroll taxes, the company match on your 401(k), or employer-paid insurance premiums. These are informational and are not subtracted from your pay. You may also see a paid-time-off block with hours earned, used and remaining.
A worked example
Take a single employee earning $72,800 a year, paid every two weeks (26 paychecks), living in Illinois. She puts 5% of her pay into a traditional 401(k) and pays $100 per paycheck for health insurance through her employer. Here is what the stub for pay period 10 of 26 could look like.
| Line | This paycheck | YTD |
|---|---|---|
| Regular salary | $2,800.00 | $28,000.00 |
| Gross pay | $2,800.00 | $28,000.00 |
| 401(k), 5% (pre-tax) | $140.00 | $1,400.00 |
| Health insurance (pre-tax) | $100.00 | $1,000.00 |
| Federal income tax | $223.58 | $2,235.80 |
| Social Security (6.2%) | $167.40 | $1,674.00 |
| Medicare (1.45%) | $39.15 | $391.50 |
| Illinois income tax | $121.15 | $1,211.50 |
| Total deductions | $791.28 | $7,912.80 |
| Net pay | $2,008.72 | $20,087.20 |
The deposit is $2,008.72, or about 71.7% of the $2,800.00 gross. Notice that YTD is just ten times the current column, because nothing has changed since January. On a real stub, a raise, a bonus or a mid-year change to your 401(k) shows up as YTD numbers that no longer line up neatly. That is normal. A YTD number that does not make sense is worth a question.
Why the tax lines use different bases
Here is a detail that confuses almost everyone. Federal income tax is figured on $2,560.00 of this paycheck: the $2,800.00 gross minus the $140.00 401(k) and the $100.00 health premium. Social Security and Medicare are figured on $2,700.00. Check it: 6.2% of $2,700.00 is $167.40 and 1.45% of $2,700.00 is $39.15.
The difference is the 401(k). A traditional 401(k) contribution lowers your income tax, but Social Security and Medicare tax still apply to it. Health premiums taken under an employer's cafeteria plan are exempt from both. Many stubs print these bases for you as separate lines such as “federal taxable wages” and “FICA wages,” and the W-2 you receive in January reports them in separate boxes.
The $223.58 of federal withholding is an estimate of how the formula could treat this employee, based on 2026 brackets and the standard deduction for a single filer. Your payroll system may use a different method and land on a somewhat different number. The point of the example is the structure, not the exact cents.
The tax lines, one at a time
Federal income tax (FIT, Fed W/H)
The amount depends on your filing status and the answers on your Form W-4, along with your pay frequency and taxable wages. It is a prepayment toward your annual tax bill, not the final amount. If too little is withheld you owe money in April. If too much, you get a refund. The IRS Tax Withholding Estimator can help you check whether your W-4 is set up the way you want.
Social Security (OASDI, SS)
6.2% of your wages, paid by you, and your employer pays another 6.2%. It only applies up to a yearly wage cap, which is $184,500 for 2026. Once you pass it, the line disappears for the rest of the year and your take-home pay rises.
Medicare (MED)
1.45% of your wages, with no cap, and your employer matches it. Together with Social Security, this is the 7.65% usually called FICA. If your wages go above $200,000 in a year, employers withhold an extra 0.9% on the amount above that line.
State and local income tax (SIT)
Most states tax wages, and nine do not: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. A few cities, including New York City and Philadelphia, add their own tax. Several states also take small amounts for disability or paid family leave insurance, and those appear as their own lines (for example SDI or PFL).
Pre-tax or post-tax? A quick reference
| Deduction | Lowers federal income tax? | Lowers Social Security and Medicare? |
|---|---|---|
| Traditional 401(k) | Yes | No |
| Roth 401(k) | No | No |
| Employer health, dental, vision premiums | Yes | Yes |
| HSA through payroll | Yes | Yes |
| Health care FSA | Yes | Yes |
| Union dues, garnishments | No | No |
Rules vary by plan and by state, so treat this as the typical pattern and confirm with your benefits team.
Abbreviations you will actually see
- YTD: year to date.
- FIT or Fed W/H: federal income tax withholding.
- OASDI or SS: Social Security.
- MED: Medicare.
- SIT: state income tax.
- SDI or SUI: state disability or unemployment-related programs. Rules differ by state, and unemployment tax is usually paid by the employer.
- OT: overtime.
- PTO: paid time off.
- GTL or imputed income: a taxable value for certain employer-provided benefits, such as group term life coverage above $50,000.
A short checklist for spotting mistakes
- Do the hours, rate or salary match your offer letter or timesheet?
- Is overtime, a bonus or a commission included when you expected it?
- Do your deductions match what you signed up for? A benefit you declined should not appear.
- Does the federal withholding fit the W-4 you submitted? If you changed jobs or got married, you may need a new one.
- Do YTD totals grow by the right amount each period?
- At the end of the year, do the YTD totals on your final stub line up with the boxes on your W-2?
If something looks off, tell payroll or HR quickly. Errors are much easier to correct while they are only a paycheck or two old. It also helps to download or save your stubs: lenders and landlords often ask for the last two or three.
Why a bonus check looks smaller than you expected
Employers often withhold federal income tax on bonuses at a flat 22% rate, plus Social Security and Medicare. That percentage can be higher than your normal rate, so the check feels heavy. It is only withholding. Your actual tax for the year is settled when you file, and part of it may come back as a refund.
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Sources and further reading
- Consumer Financial Protection Bureau: How to read a pay stub (PDF)
- University of Arizona: annotated paycheck poster (PDF)
- ADP: What is a pay stub?
- Deel: How to read a paycheck
- Social Security Administration: Contribution and benefit base
- IRS: Tax Withholding Estimator
This article is general education, not tax or legal advice. The worked example uses 2026 federal rules and an annualized estimate for illustration. Your employer's payroll system, your W-4 and your state's rules determine your actual withholding.