How to Read Your Pay Stub: Every Line Item Decoded

Most people look at the bottom line of their pay stub — the net deposit amount — and nothing else. That's understandable. But errors on pay stubs happen, benefits get miscalculated, and deductions appear that don't belong there.

Here's how to actually read every part of your pay stub.

The Header Section

At the top of your pay stub, you'll typically find:

• Pay period: The dates this paycheck covers (e.g., May 16–31)
• Pay date: When the money hits your account
• Employee ID / SSN (partial): Your identifier in the payroll system
• Filing status: How your withholding is calculated (Single, Married, etc.)
• Allowances/Exemptions: From your W-4 — affects withholding amount

Earnings Section

Regular/Base Pay: Your standard hours or salary for the period.

Overtime (OT): Hours beyond 40/week, paid at 1.5x (non-exempt employees only). Salaried employees classified as exempt generally don't receive overtime.

Commission/Bonus: Variable compensation earned in this period.

YTD (Year-to-Date): The total earned from January 1 through this paycheck. Watch this number — it matters for tax planning and benefit eligibility.

Pre-Tax Deductions

These come out before taxes are calculated, reducing your taxable income:

• 401(k) / 403(b): Retirement contributions
• HSA (Health Savings Account): If you have a high-deductible health plan
• FSA (Flexible Spending Account): For medical or dependent care expenses
• Medical/Dental/Vision premiums: Your share of employer benefits
• Commuter benefits: Pre-tax transit or parking

Tax Withholdings

• Fed Tax / Federal Income Tax Withholding: Based on W-4 and IRS tables
• SS / Social Security: 6.2% of wages up to annual cap
• Med / Medicare: 1.45% of all wages
• State Tax: Varies by state
• Local Tax: Some cities and counties have additional income tax
• SUI / SDI: State Unemployment Insurance or State Disability Insurance (varies by state)

Post-Tax Deductions

These come out after taxes — they don't reduce your taxable income:

• Roth 401(k): After-tax retirement contributions
• Life insurance (supplemental): Coverage above the employer-provided amount
• Wage garnishments: Court-ordered deductions (child support, debt judgments)
• Union dues: If applicable

Net Pay

What you actually receive. Gross Pay - All Deductions = Net Pay.

What to Check Every Paycheck

Hours (if hourly): Verify your hours match what you actually worked.

Pay rate: Ensure it reflects any recent raise or rate change.

401(k) contribution: Confirm it matches your elected percentage.

Health insurance premium: Should match your benefit enrollment.

YTD Social Security: Once you hit the wage base ($168,600 in 2024), SS withholding stops — verify this happens correctly.

Any unfamiliar deductions: Ask HR immediately if you see something you don't recognize.

Calculate what your paycheck should look like with our Paycheck Calculator — then compare to your actual stub.