How to Read Your Pay Stub: Every Line Explained

By the FiscalData.US editorial team · Updated October 2026 · 9 min read · Sources & methodology

Your pay stub (also called an earnings statement or pay slip) is the only document that shows, paycheck by paycheck, how your employer turned your gross salary into the amount that lands in your bank account. Most people glance at the net pay and move on. That is a mistake: payroll errors are more common than you might think, and the stub is also the fastest way to check whether your withholding is on track before tax season. This guide walks through each section the way a payroll professional reads it.

1. The Header: Who, When and How Often

The top of the stub identifies you and your employer and lists the pay period(the dates you worked) and the pay date (when you were paid). These are not the same thing: a period ending on the 15th may be paid on the 20th. The pay frequency matters because withholding is calculated per period. The four common schedules are weekly (52 checks a year), biweekly (26), semimonthly (24) and monthly (12).

A frequent source of confusion is the difference between biweekly and semimonthly. Biweekly means every other Friday, so twice a year you receive a "third paycheck" in a month. Semimonthly means the 15th and the last day of the month, so each check is slightly larger but there are never three in a month. If you budget on a monthly basis, divide your annual net pay by 12, not your biweekly check by 2.

2. Gross Pay and Earnings Lines

Gross pay is everything you earned before anything is taken out. On an hourly stub you will see separate lines for regular hours, overtime hours (generally paid at 1.5 times your regular rate for hours over 40 in a workweek for non-exempt employees under the Fair Labor Standards Act), holiday pay, PTO, shift differentials, commissions, tips reported to the employer and bonuses.

Check the hours first. Multiply the hours by the rate shown and confirm the line total. If you worked overtime, verify it is paid at the correct multiplier; you can double-check with our overtime pay calculator. Bonuses often appear on a separate check because employers may withhold federal tax on them at a flat supplemental rate, which we explain in our bonus withholding guide.

3. Pre-Tax Deductions

Pre-tax deductions come out of your gross pay before income tax is calculated, which is why they lower your tax bill. Typical examples:

Traditional 401(k) or 403(b) contributions — reduce federal (and most state) income tax, but not Social Security or Medicare tax.
Health, dental and vision premiums paid through a Section 125 cafeteria plan — usually reduce income tax and FICA tax.
HSA contributions through payroll — reduce income tax and FICA; see our HSA calculator.
FSA and dependent care FSA contributions.
Commuter benefits for transit and parking.

Because different deductions reduce different taxes, your stub may show several "taxable wage" figures: one for federal income tax, one for Social Security and one for Medicare. That is normal, and it is why the Social Security wage on your W-2 (Box 3) is often higher than your federal wages (Box 1).

4. Taxes Withheld

Federal income tax (FIT or FITW)

Calculated from your taxable wages and the choices on your Form W-4 using the IRS tables in Publication 15-T. This is a prepayment, not your final tax: your actual liability is settled when you file Form 1040. If the amount looks unusually high or low, your W-4 is the first thing to check — our W-4 guide covers each step.

Social Security (OASDI) — 6.2%

Withheld on wages up to the annual Social Security wage base set by the SSA. Once your year-to-date wages pass that cap, this line drops to zero for the rest of the year — a pleasant surprise for high earners in the fall. Your employer pays a matching 6.2%.

Medicare — 1.45% (plus 0.9% above $200,000)

Medicare has no wage cap. Once your wages from one employer exceed $200,000 in a calendar year, the employer must also withhold the 0.9% Additional Medicare Tax on the excess.

State and local taxes

Most states withhold income tax; nine do not tax wages at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming). Some states add lines such as California SDI, New York SDI and Paid Family Leave, New Jersey SDI/FLI or Washington's paid-leave premium. Cities like New York City, Philadelphia and many Ohio and Pennsylvania municipalities levy local income taxes that show as a separate line. Our state salary pages list what applies where you work.

5. Post-Tax Deductions

These come out after taxes and do not reduce your taxable income: Roth 401(k) contributions, after-tax insurance (some life or disability coverage), union dues, charitable payroll giving, wage garnishments and repayment of payroll advances. A Roth contribution is the main one most employees choose deliberately — it costs more today but grows tax-free.

6. Net Pay and Year-to-Date Columns

Net pay is gross pay minus every deduction and tax. Next to each line most stubs show a YTD (year-to-date) total. The YTD column is the most useful part of the stub for tax planning: by your last paycheck in December it should match, almost exactly, the figures on your W-2.

Line	Example (biweekly)	What to check
Gross pay	$2,692.31	Hours × rate, or salary ÷ 26
401(k) 5%	−$134.62	Matches your elected percentage
Health premium	−$85.00	Matches open-enrollment choice
Federal income tax	−$230.00	Reasonable for your W-4
Social Security 6.2%	−$161.65	6.2% of FICA wages
Medicare 1.45%	−$37.81	1.45% of FICA wages
Net pay	≈ $2,043	Equals what hit your account

Illustrative figures for a $70,000 salary in a no-income-tax state; your numbers will differ. Note that FICA here is calculated on gross pay minus the health premium (a Section 125 deduction) but not minus the 401(k).

7. A Five-Minute Monthly Checklist

Hours and rate are correct, including overtime and PTO.
Benefit deductions match what you selected — especially after open enrollment or a life event.
Retirement contributions match your elected percentage and the employer match appears (often on a separate memo line).
The work state is correct. If you moved or work remotely, a wrong state code is a common and costly error.
YTD federal withholding is on pace: multiply the latest YTD figure by (pay periods in year ÷ periods so far) and compare with your expected tax.

If something is wrong, contact payroll or HR in writing and keep a copy of the stub. Employers can correct errors in later paychecks within the same year; after the year closes the fix requires a corrected W-2 (Form W-2c), which is slower for everyone.

Frequently Asked Questions

Why is my first paycheck smaller than expected?

It may cover a partial period, and benefit deductions sometimes start immediately while the period is short.

How long should I keep pay stubs?

At least until you have compared them with your W-2. Many people keep a full year, and lenders often ask for the most recent 30 days when you apply for a mortgage.

Can I estimate my net pay before I get the stub?

Yes — enter your salary and deductions in our paycheck calculator to see a line-by-line estimate.

Sources & legal references

Figures in this guide were checked by the FiscalData.US editorial team against these primary sources and, where relevant, state revenue department notices. See our methodology & update policy.

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FiscalData.us provides estimates for informational purposes only and is not financial or tax advice. The information in this guide is general in nature, does not consider your personal circumstances and does not create a client relationship. FiscalData.US is not responsible for decisions made based on this content.