How to Read Your Pay Stub
Quick Answer
Your pay stub is a detailed breakdown of your earnings and deductions for each pay period. It shows your gross pay at the top, lists every tax and deduction in the middle, and your net pay (take-home pay) at the bottom. Understanding each line helps you verify your paycheck is correct, plan your taxes, and make smarter decisions about benefits.
The Anatomy of a Pay Stub
Most pay stubs follow the same general layout. Here is what each section means:
Earnings Section
This shows how your gross pay was calculated:
| Line | What It Means |
|---|---|
| Regular hours/salary | Base pay for the period |
| Overtime | Hours worked beyond 40/week at 1.5x rate |
| Bonus | Any bonus payments |
| Commission | Sales-based earnings |
| PTO/Holiday | Paid time off used |
Tax Withholdings Section
Shows mandatory taxes taken from your pay:
| Line | What It Means |
|---|---|
| Federal income tax | Based on your W-4 and tax brackets |
| State income tax | Your state tax (blank in no-tax states) |
| Social Security (OASDI) | 6.2% up to $176,100 |
| Medicare | 1.45% on all wages |
| Local/city tax | Local income tax if applicable |
Deductions Section
Shows voluntary and employer-sponsored deductions:
| Line | Pre or Post Tax |
|---|---|
| 401(k) traditional | Pre-tax |
| 401(k) Roth | Post-tax |
| Health insurance | Usually pre-tax |
| HSA | Pre-tax |
| FSA | Pre-tax |
| Life insurance | May be post-tax |
| Dental/vision | Usually pre-tax |
Year-to-Date (YTD) Section
Shows cumulative totals for the calendar year. This is useful for tracking whether you are approaching the Social Security wage cap ($176,100) or other annual limits.
Real Example: Reading a Pay Stub
Amanda earns $72,000 in New York, is single, contributes 6% to her 401(k), and pays $140/paycheck for health insurance. Her biweekly stub:
| Line | Current | YTD (10 paychecks) |
|---|---|---|
| Gross Pay | $2,769.23 | $27,692.30 |
| Federal tax | -$298.00 | -$2,980.00 |
| NY state tax | -$135.00 | -$1,350.00 |
| NYC tax | -$95.00 | -$950.00 |
| Social Security | -$171.69 | -$1,716.90 |
| Medicare | -$40.15 | -$401.50 |
| 401(k) | -$166.15 | -$1,661.50 |
| Health insurance | -$140.00 | -$1,400.00 |
| Net Pay | $1,723.24 | $17,232.40 |
Amanda can verify that her 401(k) contribution is correct ($2,769.23 x 6% = $166.15), that Social Security is 6.2% of gross ($171.69), and that her net pay matches her bank deposit.
What to Check For
Review your pay stub regularly to catch errors:
- Correct hours and rate — Especially if you are hourly
- Filing status — Make sure it matches your W-4
- 401(k) percentage — Verify it matches what you elected. See how 401(k) reduces taxes
- Social Security YTD — Should stop at $10,918.20 once you hit the wage cap
- State tax — Should be zero if you are in a no-tax state
Compare your pay stub to what the SalaryHog calculator estimates for your salary and state to spot any discrepancies.