How to Read Your Pay Stub: Every Line Explained (With Examples)

You glance at your pay stub and see a wall of numbers, codes, and abbreviations. Gross, net, FWT, FICA, YTD, OASDI — it reads more like a government cipher than a financial document. Most people skip straight to the bottom line and hope for the best.

That’s a mistake. Your pay stub is the single most important financial document you receive on a regular basis. It tells you whether your tax withholding is on track, whether your employer is deducting the right amounts for insurance and retirement, and whether a payroll error is quietly costing you money every pay period.

This guide walks through every section and every common line item on a typical pay stub — in plain English, with a real example — so you can read yours with confidence in under five minutes.

Key Takeaways

• A pay stub has four main sections: earnings, taxes, deductions, and net pay. Everything flows top-to-bottom from gross to net.
• Federal income tax withholding is an estimate based on your W-4 — it’s not your final tax bill.
• FICA (Social Security + Medicare) is a flat 7.65% that comes out of every paycheck, no exceptions.
• YTD (year-to-date) columns are your best tool for spotting errors and tracking annual limits like 401(k) contributions and Social Security caps.
• Pre-tax deductions (401(k), HSA, health insurance) lower your taxable income. Post-tax deductions (Roth 401(k), garnishments) do not.
• If the numbers don’t match what you expected, use our 50-State Paycheck Calculator to verify the math independently.

The Four Sections of Every Pay Stub

Think of your pay stub as a waterfall. Money starts at the top (gross pay) and flows through two filters (taxes and deductions) before landing at the bottom (net pay). Every pay stub, whether it’s a printed slip or a PDF from your HR portal, is organized around these four zones:

Let’s walk through each zone, line by line.

Section 1: Earnings (Your Gross Pay)

The top of your pay stub shows what you earned during the pay period — before anything is taken out. This is your gross pay.

Common lines in the Earnings section

The “Current” vs. “YTD” columns

Almost every pay stub shows two columns for each line:

• Current — what you earned (or what was deducted) in this pay period.
• YTD (Year-to-Date) — the running total from January 1 through this pay period.

The YTD column is extremely useful. It lets you:

• Check whether your gross pay is on pace with your annual salary.
• See how close you are to annual limits (like the $184,500 Social Security wage base or the $24,500 401(k) contribution limit in 2026).
• Spot any pay period where something was charged twice or missed entirely.

Pro tip: If your gross pay YTD divided by the number of pay periods elapsed doesn’t match your expected per-period pay, something changed — a raise, a retroactive adjustment, or possibly an error.

Section 2: Taxes (Mandatory Withholding)

This is the section that shrinks your paycheck the most, and the one people understand the least. Every line here represents money your employer is legally required to withhold and send to a tax authority on your behalf.

Federal Income Tax (FIT / FWT)

This is the estimated federal income tax your employer withholds based on the Form W-4 you filed. The amount depends on:

• Your filing status (Single, Married Filing Jointly, Head of Household).
• The number of dependents you claimed.
• Any additional withholding you requested on Line 4(c) of the W-4.
• Your income level — because the U.S. uses progressive brackets (10% through 37% in 2026).

This is an estimate, not your final tax bill. If your employer withholds too much throughout the year, you get a refund when you file. If too little, you owe. The IRS Tax Withholding Estimator helps you calibrate it.

What to check: Compare your FIT withholding to what our State Paycheck Calculators predict. A significant mismatch usually means your W-4 needs updating.

Social Security Tax (OASDI / SS)

A flat 6.2% of your gross wages, up to the 2026 wage base of $184,500. Your employer pays an identical 6.2% on top. The abbreviation “OASDI” stands for Old-Age, Survivors, and Disability Insurance — the technical name for Social Security.

Once your YTD earnings hit $184,500, this tax stops for the rest of the year. If you see Social Security still being deducted after you’ve passed the wage base, that’s a payroll error you should flag immediately. The SSA wage base page confirms the current limit.

What to check: Multiply your current gross pay by 0.062. The result should match (or be very close to) the Social Security deduction on your stub.

Medicare Tax

A flat 1.45% of all gross wages — no cap, no wage base limit. Unlike Social Security, this one never stops.

If you earn more than $200,000 in a calendar year (single) or $250,000 (married filing jointly), an Additional Medicare Tax of 0.9% kicks in on wages above that threshold, bringing the effective rate to 2.35%. The IRS explains this in Topic No. 751.

FICA: The Combined Number

You’ll sometimes see “FICA” as a single line instead of separate Social Security and Medicare lines. FICA is simply the sum:

This combined 7.65% is one of the largest deductions on most paychecks — and it’s the one people are least aware of. On a $60,000 salary, FICA alone costs you $4,590 per year, or about $176.54 per biweekly check.

State Income Tax (SIT)

If your state has an income tax, it’s withheld here. Rates and brackets vary enormously by state:

• Nine states charge zero income tax — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
• Others range from flat rates around 3–5% up to progressive brackets exceeding 10%.

This is often the biggest variable between two people with identical salaries. To see your state’s exact brackets and withholding, pick your state in our State Paycheck Calculators.

Local / City / County Tax

Some cities, counties, and school districts levy their own income or wage taxes. These show up as separate lines and are usually small (0.5%–3%), but they add up. Residents of cities like New York City, Philadelphia, and many Ohio municipalities commonly see these.

Section 3: Deductions (Voluntary and Involuntary)

This section covers everything that is not a tax — items you elected during benefits enrollment, plus a few things that may be required by law (like garnishments). Deductions fall into two categories, and the distinction matters.

Pre-Tax Deductions

These come out of your pay before income tax is calculated. That means they lower your taxable wages, which reduces the federal and state tax withheld. The net cost to your paycheck is less than the face value of the deduction.

What to check: Confirm that the amounts match what you elected during open enrollment. A common error is a benefit that starts a pay period early or late, or a premium that doubled because the system missed a period.

Post-Tax Deductions

These come out after taxes are calculated. They do not reduce your taxable income.

Employer Contributions (Informational Lines)

Some stubs include a separate section showing what your employer paid on your behalf. These don’t reduce your paycheck — they’re purely informational:

• Employer 401(k) match — shows their matching contribution.
• Employer health insurance — their share of the premium.
• Employer FICA — the matching 6.2% Social Security + 1.45% Medicare they pay.

These lines are valuable context: they show your total compensation package, not just your salary.

Section 4: Net Pay (Your Take-Home)

The bottom of the stub. This is the number deposited into your bank account.

Most stubs also show:

• Net pay (current) — your deposit for this period.
• Net pay (YTD) — the total deposited into your account since January 1.
• Payment method — direct deposit, check number, or pay card.
• Bank account — the last four digits of the account receiving the deposit (if direct deposit).

What to check: Verify that the “current net pay” on your stub matches the actual deposit in your bank account. If you split direct deposits across multiple accounts, the stub should show each split.

A Real Example: Reading a $60,000 Salary Stub

Let’s put this all together. Here’s what a single biweekly pay stub might look like for someone earning $60,000/year in a state with ~4% income tax, contributing 5% pre-tax to a 401(k), with a standard health insurance deduction.

Earnings

Taxes

Deductions

Net Pay

A few things to notice:

• Federal tax is lower than you might expect because the 401(k) contribution ($115.38) and health insurance ($95.00) come out pre-tax, reducing the taxable wages that FIT is calculated on.
• FICA is calculated on the full gross — pre-tax deductions don’t reduce Social Security or Medicare. (HSA contributions are the exception — they’re exempt from FICA.)
• YTD Social Security is $2,003.08 after 14 periods. At this salary, you won’t hit the $184,500 cap, so Social Security will be deducted all year.
• YTD 401(k) is $1,615.38 — well under the $24,500 annual limit.

Want to verify these numbers for your own salary? Our State Paycheck Calculators handle federal tax, FICA, all 50 state brackets, and pre-tax deductions automatically.

Common Pay Stub Codes and Abbreviations

Pay stubs love abbreviations. Here’s a quick reference for the ones you’ll encounter most often:

How to Check Your Pay Stub for Errors

Payroll errors are more common than you’d think. The IRS estimates that about 33% of employers make payroll mistakes in a given year. Here’s a five-step check you can do in under three minutes:

Step 1: Verify your gross pay

• Salaried? Divide your annual salary by the number of pay periods (usually 26 for biweekly, 24 for semi-monthly, or 52 for weekly). The result should match “Regular Pay.”
• Hourly? Multiply your hours by your rate. Check overtime hours separately — they should be at 1.5× (or whatever your premium rate is). Our Overtime Calculator can help.

Step 2: Check FICA math

• Social Security = Gross Pay × 0.062 (until you’ve earned $184,500 YTD).
• Medicare = Gross Pay × 0.0145 (no limit).
• If either number doesn’t match within a few cents, ask payroll.

Step 3: Confirm your deductions match your elections

Pull up your benefits enrollment summary and compare every line:

• Is your 401(k) percentage correct?
• Are your health, dental, and vision premiums what you signed up for?
• Did a deduction appear that you didn’t authorize?
• Did a deduction disappear that should be there?

Step 4: Watch the YTD columns

• Is your 401(k) YTD on pace with what you intended to contribute this year?
• Has Social Security YTD passed $11,439 (the annual max on $184,500)? If so, the current-period Social Security deduction should be $0.
• Does your gross pay YTD ÷ number of periods elapsed = your expected per-period pay?

Step 5: Compare net pay to your bank deposit

Your net pay on the stub should exactly match what hit your bank account (or the sum of split deposits). If it doesn’t, a payment was misrouted or a deduction was processed after the stub was generated.

If you suspect an error, don’t just let it ride. Contact your HR or payroll department with your specific stub and the line you’re questioning. Most errors are corrected on the next pay cycle with a retroactive adjustment.

Pay Stub vs. W-2: What’s the Difference?

Your pay stub and your W-2 are related but serve different purposes:

Pro tip: When you get your W-2 in January, compare Box 1 (Wages) and Box 2 (Federal Tax Withheld) to the YTD figures on your final pay stub of the year. They should match. If they don’t, contact your employer before filing your return.

Digital vs. Paper Pay Stubs

Employers are increasingly moving to digital pay stubs, available through HR portals like ADP, Gusto, Workday, Paychex, or a custom in-house system. A few things to know:

• Same information, different format. Digital stubs contain the same data as paper ones — they’re just displayed on a screen or downloaded as a PDF.
• Save your stubs. Whether digital or paper, keep copies for at least three years (the IRS standard audit window). Many HR portals only retain 1–2 years.
• Download the PDF. If your portal offers PDF downloads, save a copy to your personal files. HR systems change, companies merge, and access can disappear.

Frequently Asked Questions

What does YTD mean on my pay stub?

YTD stands for Year-to-Date — the cumulative total of that line item from January 1 through the current pay period. For example, if your gross pay YTD reads $32,307.69 on your 14th biweekly paycheck, that’s the total gross you’ve earned so far this year.

Why is FICA on my pay stub?

FICA stands for the Federal Insurance Contributions Act. It’s the law that requires you (and your employer) to pay into Social Security and Medicare. The combined employee rate is 7.65% — 6.2% for Social Security and 1.45% for Medicare. It appears on every pay stub because it’s deducted every pay period.

What is OASDI on my pay stub?

OASDI stands for Old-Age, Survivors, and Disability Insurance — it’s the official name for Social Security. If your stub says “OASDI” instead of “Social Security,” it’s the same thing: 6.2% of your gross wages up to the annual wage base ($184,500 in 2026). The SSA FAQ confirms the current rates.

Why doesn’t my net pay match my bank deposit?

Common reasons include: direct deposit splits across multiple accounts, a payroll processing delay, a one-time adjustment applied after the stub was generated, or a bank hold. Check whether your stub shows a split deposit and compare each piece. If nothing explains the discrepancy, call payroll.

How do I know if my tax withholding is correct?

The easiest way: compare your stub’s federal tax withholding to what our State Paycheck Calculators predict for your salary, filing status, and state. For an official check, use the IRS Tax Withholding Estimator. If you’re consistently over- or under-withheld, file a new W-4 with your employer.

Do I need to keep my pay stubs?

Yes. The IRS recommends keeping tax records (including pay stubs) for at least three years from the date you filed your return. Your stubs verify the income and withholding on your W-2, and they’re essential if your return is ever audited. Most financial advisors suggest keeping them until you receive and verify your W-2 for that year.

What is “imputed income” on my pay stub?

Imputed income is a non-cash benefit your employer provides that the IRS considers taxable. The most common example is employer-paid group term life insurance over $50,000 — the cost of coverage above that threshold is added to your taxable wages as “imputed income.” You’ll see it increase your gross taxable wages but it’s not actual cash you received. It appears on your W-2 in Box 12 (Code C).

What does Code TT mean on my 2026 pay stub?

Code TT is the new W-2 Box 12 code for Qualified Overtime Compensation under the One Big Beautiful Bill Act. It represents the deductible portion of your overtime premium — roughly one-third of your overtime wages. Learn the full details in our guide: No Tax on Overtime: How the Deduction Actually Works.

The Bottom Line

Your pay stub isn’t just a receipt — it’s a financial audit that happens every pay period. Learning to read it takes five minutes, but it can save you hundreds or even thousands of dollars over the course of your career by catching errors, optimizing your W-4, and making sure your benefit deductions match what you actually signed up for.

The four sections always flow the same way: gross pay → taxes → deductions → net pay. Know what each line should be, check the YTD columns regularly, and verify your net pay against your bank deposit. If anything looks off, ask payroll — it’s your money.

And when you want to independently verify every number on your stub, run your salary through our 50-State Paycheck Calculator or explore the full suite of tools at YourMoneyMath to see exactly where every dollar goes.

This article is for general educational purposes and is not tax or financial advice. Tax rules change and individual situations vary — consult a qualified tax professional for guidance specific to you.