The easiest way to read a pay stub is to follow the money from earnings to gross pay, then through taxes and deductions, and finally to net pay.
Read your pay stub in 6 steps
Pay stub layouts vary by employer and payroll provider, but the important information generally follows the same basic pattern.
1. Check the pay period
Find the beginning and ending dates for the work period covered by the paycheck.
2. Review earnings
Look for regular wages, salary, overtime, bonuses, commissions or other earnings.
3. Find gross pay
Gross pay is the earnings amount before applicable taxes and employee deductions.
4. Review taxes
Check federal, state, local and payroll-tax withholdings shown on the statement.
5. Review deductions
Look for retirement contributions, health benefits and other deductions.
6. Find net pay
Net pay is the amount left after applicable taxes and deductions are subtracted.
Start with the pay stub itself
The example below is simplified for educational purposes. Your employer's pay stub may use different labels, categories or layouts.
Check the pay period and pay date
The pay period tells you which dates the paycheck covers. The pay date tells you when your employer issued the payment.
Pay period
This is the period during which you earned the wages shown on the statement.
Pay date
This is the date the paycheck or direct deposit is scheduled to be paid.
If you are comparing your paycheck with your work schedule, make sure you compare the correct pay period rather than only looking at the date the money reached your bank account.
Understand your earnings
The earnings section explains how your gross wages were calculated for that paycheck.
Regular pay
Your normal wages or salary for the pay period.
Overtime
Additional earnings for qualifying overtime hours when applicable.
Bonus
Additional compensation such as a performance bonus or other incentive payment.
Commission
Compensation based on sales or another performance-based arrangement.
Find your gross pay
Gross pay is the amount of earnings before applicable taxes and deductions are taken out.
Depending on how you are paid, gross pay may come from salary, hourly wages, overtime, bonuses, commissions or other compensation.
Identify the taxes withheld
Your pay stub may show several payroll tax withholdings. The exact items depend on your circumstances and location.
Federal income tax
Federal income tax withholding is generally based on your wages and the withholding information provided to your employer.
State income tax
Some states impose individual income taxes, while others do not.
Social Security
Social Security payroll tax is generally shown separately from federal income tax.
Medicare
Medicare payroll tax is generally listed as a separate payroll withholding.
Review deductions and benefits
Not everything taken from your paycheck is an income tax. Your pay stub may also show employee deductions for benefits, retirement plans and other programs.
Health insurance
Employee contributions toward medical, dental or vision coverage may appear here.
Retirement
Contributions to a workplace retirement plan may be listed separately from taxes.
HSA or FSA
Eligible health spending contributions can appear as separate payroll deductions.
Other deductions
Depending on your employer, there may be additional deductions or employee benefits.
Understand current vs. YTD amounts
One of the most useful parts of a pay stub is the difference between current and YTD amounts.
YTD means year to date. It generally represents the cumulative amounts recorded from the beginning of the calendar or payroll year through the current paycheck.
Find your net pay
Net pay is the amount that remains after applicable taxes and employee deductions have been taken from your earnings.
This is usually the number most closely connected to the amount you actually receive through direct deposit or another payment method.
Common pay stub abbreviations
Payroll systems often shorten labels to fit compact pay-stub layouts.
| Abbreviation | Common meaning | What to look for |
|---|---|---|
| YTD | Year to date | Cumulative amount for the year |
| FIT / FITW | Federal income tax | Federal income tax withholding |
| SS / OASDI | Social Security | Social Security payroll tax |
| MED / MEDFICA | Medicare | Medicare payroll tax |
| 401(k) | Retirement contribution | Employee retirement contribution |
| HSA | Health Savings Account | Eligible health account contribution |
| FSA | Flexible Spending Account | Eligible flexible spending contribution |
What should you check on every pay stub?
Reading your pay stub isn't only about understanding the numbers. It can also help you spot unexpected changes.
Pre-tax vs. post-tax deductions
Some deductions can receive different tax treatment. Your pay stub may identify whether a deduction is taken before or after certain taxes are calculated.
Pre-tax deduction
A qualifying deduction may reduce the amount of wages subject to certain taxes, depending on the type of benefit and applicable rules.
Post-tax deduction
A post-tax deduction is generally taken after the relevant taxes have been calculated.
Tax treatment can vary by deduction and tax type. Don't assume that every deduction labeled "pre-tax" affects every payroll tax in the same way.
Protect your pay stub
Pay stubs can contain sensitive personal and employment information. Avoid posting an unedited pay stub publicly or sending it to people who do not need it.
Frequently asked questions
Gross pay is the amount of earnings before applicable taxes and employee deductions are subtracted.
Net pay is the amount remaining after applicable taxes and deductions are taken from your earnings.
YTD means year to date. It generally shows the cumulative amount recorded from the beginning of the year through the current paycheck.
Taxes, payroll withholdings, retirement contributions, insurance premiums and other applicable deductions can reduce gross pay before you receive the final amount.
No. Employers and payroll providers can use different layouts, abbreviations and categories. The underlying concepts are generally similar, but the labels may differ.
Compare the statement with your hours, salary, benefits and previous paychecks. If something still appears incorrect, contact your payroll or human-resources department and ask them to review the calculation.