How to Read a Pay Stub, Line by Line

A pay stub shows your gross pay at the top, then everything taken out of it, then your net pay: what actually lands in your account. The deductions come in three groups: pre-tax deductions such as a 401(k) or health insurance, taxes (federal income tax, Social Security, Medicare, and state or local tax where it applies), and after-tax deductions such as a Roth 401(k) or union dues. Read it in that order and every number on the stub makes sense.

A pay stub, line by line

Someone on a $60,000 salary in Texas, single, paid every two weeks, putting 5% into a 401(k):

Two things worth noticing. The 401(k) lowered federal income tax, which would be $193.08 without it, but not Social Security or Medicare, which are worked out on the full $2,307.69. And putting $115.38 into the 401(k) only cut take-home pay by $101.53, because $13.85 of it would have gone in tax anyway. The Texas paycheck calculator works these out for any salary.

The top of the stub

• Pay period and pay date. The dates the pay covers, and the day it was paid.
• Hours and rate. For hourly pay: regular hours, overtime hours, and the rate for each. Overtime is usually 1.5 times your regular rate.
• Gross pay. Everything earned before anything comes out: wages, overtime, bonuses, commission, tips reported through payroll.
• Year to date (YTD). A second column adding up every paycheck since 1 January. It’s the quickest way to check your W-2 before it arrives.

Pre-tax deductions

These come out before income tax is worked out, so they lower the tax you pay:

• Traditional 401(k) or 403(b). Lowers income tax, not Social Security or Medicare.
• Health, dental and vision insurance through a cafeteria (section 125) plan. These lower income tax and, usually, Social Security and Medicare too.
• HSA and FSA contributions through payroll. Also usually free of income tax, Social Security and Medicare.
• Commuter benefits for transit and parking, up to the yearly limits.

Taxes on a pay stub

Social Security and Medicare are often shown together as FICA: 7.65% in all, until Social Security stops at the wage base. Your employer pays the same 7.65% again on top, which doesn’t appear as a deduction on your stub.

State and local lines

This is where stubs differ most from state to state. A few examples from our paycheck calculators:

• Washington takes no income tax from wages, but two state premiums usually appear: Paid Family and Medical Leave and the WA Cares Fund. The Washington paycheck calculator shows both.
• Maryland adds a local income tax for every county and Baltimore City, between 2.25% and 3.30%. See the Maryland paycheck calculator.
• Indiana adds a county income tax in all 92 counties, from 0.5% to 3%. See the Indiana paycheck calculator.
• Michigan has a flat state tax, and 24 cities add their own income tax. See the Michigan paycheck calculator.
• Georgia and Arkansas withhold state tax using each state’s own form: the G-4 and the AR4EC. See the GA paycheck calculator and the Arkansas salary calculator.

After-tax deductions

These come out after taxes, so they don’t lower your tax:

• Roth 401(k) contributions. Taxed now, tax-free later.
• Union dues.
• Wage garnishments, such as child support or a court-ordered debt.
• Charity, life insurance above the tax-free amount, or loan repayments to a retirement plan.

Some stubs also list employer contributions, such as a 401(k) match or the employer’s share of health insurance. They’re shown for information and don’t come out of your pay.

How to check your pay stub

1. Check gross pay. Salary ÷ number of paychecks a year, or hours × rate plus overtime.
2. Check Social Security and Medicare. 6.2% and 1.45% of gross pay, less any section 125 deductions. These are the easiest lines to verify exactly.
3. Compare federal and state tax with a calculator using the same W-4 and state form details. A small difference usually comes from the payroll system’s rounding; a large one from a W-4 that doesn’t match what you meant.
4. Check the deductions against what you signed up for, especially after open enrollment or a pay rise.
5. Check the YTD column once in a while: it should be the sum of your stubs so far.

When the numbers look wrong

• Federal tax suddenly higher or lower: a new W-4, a change in filing status, or a bonus taxed at the flat supplemental rate.
• Social Security stopped: you’ve reached the $184,500 wage base for the year. It starts again in January.
• Too much Social Security with two jobs: each employer withholds up to the wage base separately. You get the excess back as a credit on your tax return.
• A deduction you don’t recognise: ask payroll. Codes vary between payroll providers.

Errors are usually fixed on the next paycheck. Keep your stubs at least until you’ve checked your W-2 and filed your return.

Frequently asked questions

What is the difference between gross pay and net pay?

Gross pay is everything you earned before deductions. Net pay is what’s left after pre-tax deductions, taxes and after-tax deductions: the amount actually paid to you.

What does OASDI mean on a pay stub?

Old-Age, Survivors and Disability Insurance: Social Security. It’s 6.2% of your pay, up to $184,500 of wages in 2026.

Is my employer required to give me a pay stub?

Federal law doesn’t require pay stubs, though employers must keep pay records. Most states do require a pay statement, on paper or electronically, and set what it must show.

Why does my 401(k) contribution not lower my Social Security tax?

Traditional 401(k) contributions are excluded from income tax, not from Social Security and Medicare. Those two taxes are worked out on your pay before the 401(k) comes out.

Sources

• IRS, Publication 15 (Circular E), Employer’s Tax Guide, and Publication 15-T, Federal Income Tax Withholding Methods.
• Social Security Administration: 2026 contribution and benefit base of $184,500.
• US Department of Labor: recordkeeping under the Fair Labor Standards Act.
• Worked example and state details: our paycheck calculators, where the figures are asserted in their tests.

Checked 12 November 2026. This guide is general information, not tax or legal advice. Your employer’s payroll department can explain any line on your own stub.