How to Read Your Pay Stub: Every Deduction Explained

A pay stub can look like a wall of abbreviations. Yet it is the clearest record of where your money goes before you ever see it. Knowing how to read one helps you catch payroll errors, plan your budget and decide whether to adjust your tax withholding.

The top of the stub: pay details

Pay period and pay date: the dates worked and the day you are paid.
Hours and rate: for hourly workers, regular hours, overtime hours (usually at 1.5×) and the rates used.
Gross pay: total earnings before any deductions, including salary, wages, overtime, bonuses and commissions.
Year-to-date (YTD): running totals since January 1. Useful for checking you have not hit the Social Security wage base or your 401(k) limit.

Pre-tax deductions

These come out before income tax is calculated, which lowers your tax:

401(k) or 403(b): traditional retirement contributions. They reduce income tax but not Social Security and Medicare tax.
Health, dental and vision premiums under a cafeteria (Section 125) plan, which usually reduce both income tax and FICA.
HSA and FSA contributions for medical and dependent care costs.
Commuter benefits for transit and parking.

Taxes withheld

Federal income tax (FIT or FWT): based on your W-4 and the IRS withholding tables.
Social Security (OASDI or FICA-SS): 6.2% of wages up to the annual wage base ($184,500 in 2026).
Medicare (FICA-MED): 1.45% of all wages, plus an additional 0.9% once your wages pass $200,000 in a year.
State income tax (SIT) and local tax: depends on where you live and work. Some states also withhold for disability or family leave insurance.

Post-tax deductions

Roth 401(k) contributions, union dues, wage garnishments, charitable payroll gifts and some insurance premiums are taken after tax. They do not reduce your tax bill.

Net pay

Net pay is gross pay minus every deduction above. It is the amount deposited into your account. For a single filer earning $65,000 and paid every two weeks, typical deductions turn $2,500 of gross pay into about $1,890 of take-home pay, depending on state tax and benefit choices.

What to check every time

Hours and rates match your timesheet, including overtime.
Benefit deductions match what you elected during enrollment.
Your 401(k) percentage is right and the employer match appears (often on a separate line).
Your state is correct, especially after moving or switching to remote work.
YTD totals look reasonable compared with last period.

If your stub looks off, ask your payroll or HR department early; errors are much easier to fix within the same year. To model your own check, use the paycheck calculator with your salary, pay frequency and deductions.