A pay stub shows how your employer got from what you earned to what landed in your bank account. Layouts differ between payroll providers, but most stubs carry the same groups of lines, usually with two columns: this pay period and year to date.
Gross pay
Gross pay is what you earned before anything was taken out: your salary for the period, or your hours times your hourly rate, plus any overtime, bonuses, commissions or tips your employer reports. If gross pay looks wrong, check the hours and rates listed next to it first.
Pre-tax deductions
Some deductions come out before income tax is figured, such as traditional 401(k) contributions and many health, dental and vision premiums. They lower the wages your income tax withholding is based on. Not every pre-tax deduction lowers Social Security and Medicare wages, so the taxable-wage figures on a stub can differ from line to line.
Taxes withheld
- Federal income tax is withheld based on your wages and the Form W-4 you gave your employer.
- Social Security and Medicare (often labeled FICA, OASDI or Med) are withheld at fixed rates set by law; the IRS explains them in Topic 751.
- State and local income taxes appear only if your state or city taxes wages.
After-tax deductions
These come out after taxes are figured: Roth 401(k) contributions, some insurance, union dues or wage garnishments, for example.
Net pay and year-to-date totals
Net pay is gross pay minus every deduction and tax above. The year-to-date column adds up every pay period so far this year; it is the quickest way to check a stub against your final pay stub of the year or your Form W-2.
Check it with a calculator
You can enter your gross pay, pay frequency, filing status, state and pre-tax deductions in our paycheck calculator to see an estimate of each line. Your employer’s numbers may differ because of credits, extra withholding on your W-4 or deductions the calculator does not model.