How to Read a Pay Stub: Every Line Explained
Most of us glance at the deposit amount and move on. That's fine until the day something looks off: the check is smaller than usual, a new line appears, or a lender asks for your last two stubs. Knowing how to read a pay stub takes about ten minutes to learn, and it can save you real money by helping you catch mistakes early.
Why a pay stub matters
Your pay stub (also called a pay statement or earnings statement) is the receipt for your work. It proves your income when you rent an apartment, apply for a loan or file taxes. It also shows whether your employer calculated your pay correctly. Layouts vary between companies and payroll providers, but nearly every stub is built from the same four blocks: earnings, taxes, deductions and net pay.
The header: who, when and how long
At the top you'll see your name, the employer, and the pay period, which is the stretch of time the check covers. You'll also see the pay date, the day the money arrives. These two aren't the same, since many employers pay a few days after a period ends. Check that the dates match your calendar, because a wrong pay period can mean missing hours.
Earnings: what you were paid
This section lists gross pay, meaning your pay before anything is taken out. Salaried employees usually see a single line. Hourly workers see hours multiplied by their rate, often with separate rows for regular time, overtime and holiday pay. Bonuses, commissions and tips each get their own row too. If you earn $60,000 and are paid every two weeks, your gross is $60,000 ÷ 26 = $2,307.69 per check. Overtime appears at 1.5 times your rate, as covered in how overtime pay works.
Taxes: the required deductions
Here you'll find the amounts withheld by law. The names look cryptic, so here's a decoder:
- Federal Income Tax (FITW, Fed W/H): the estimate of your federal income tax, based on your W-4. See federal income tax withholding.
- Social Security (OASDI, FICA-SS): 6.2% of your wages, up to the yearly wage base.
- Medicare (FICA-MED): 1.45% of wages.
- State income tax: depends on where you live and work.
- Local tax or state programs: some places add city tax, disability insurance (SDI) or paid family leave.
For a single filer earning $60,000 in a state without income tax, the estimates per paycheck are about $193.08 federal, $143.08 Social Security and $33.46 Medicare. What is FICA tax explains the second and third.
Deductions: pre-tax and post-tax
Below the taxes come the deductions you've chosen. Pre-tax deductions, like a traditional 401(k) or health insurance premiums, reduce the pay on which income tax is calculated. Post-tax deductions, like a Roth 401(k) or union dues, don't. Some stubs also show employer-paid items such as the company's 401(k) match or its share of insurance. Those are informational and aren't taken from your pay. The details are in paycheck deductions explained.
Net pay: what you actually receive
Net pay is gross pay minus everything above. In the example: $2,307.69 − $193.08 − $143.08 − $33.46 = $1,938.07. If you split your direct deposit among several accounts, the stub shows how the net amount is divided.
| Line | This period |
|---|---|
| Gross pay | $2,307.69 |
| Federal tax | $193.08 |
| Social Security | $143.08 |
| Medicare | $33.46 |
| Net pay | $1,938.07 |
Year-to-date (YTD) columns
Next to many lines is a YTD figure, the running total since January 1. It's useful in three ways. It helps you see how close you are to the Social Security wage base if you earn a lot. It confirms retirement contributions are adding up. And it lets you compare what's been withheld against what you expect to owe in April.
Other things you may see
Some stubs list paid time off balances, such as vacation hours accrued and used. Others show imputed income, a taxable value placed on certain benefits, or reimbursements that aren't taxed. If any line is unfamiliar, ask HR what it is.
A quick error checklist
- Hours and pay rate match what you agreed to.
- Overtime was paid at the right multiple.
- Your name, address and filing status are correct.
- No deduction appeared that you didn't sign up for.
- Social Security stops after the wage base is reached, not before.
- Pay-period dates match your actual schedule.
If something looks wrong, start with payroll or HR, with your stub in hand. Most mistakes are fixed in the next pay cycle. Keep your stubs for at least a year, or save the digital versions, since lenders and landlords often ask for them.
Compare your stub with a calculator
For a sanity check, enter your salary and filing status in the US paycheck calculator. Small differences are normal because every employer's payroll rounds and applies pre-tax benefits differently. Big gaps are a signal to look closer. And to understand how the numbers in each section come together, how paycheck taxes work walks through the full sequence.
Written by Muhammad Tabish. Example based on 2026 US rules, a single filer and the standard deduction. Reviewed October 2026. Not tax advice.