How to read your pay stub, line by line

A pay stub is the receipt for your work. It shows what you earned, what came out and why, and how the year adds up so far. Most people only look at the last number. A few minutes with the rest of it can catch mistakes, explain a smaller check and show you where a raise really went.

What are the main parts of a pay stub?

Layouts differ between payroll providers, but almost every stub has the same five blocks:

• Who and when: your name, the pay period dates and the pay date. The pay period is the work being paid for; the pay date is when the money arrives.
• Earnings: regular hours or salary, overtime, bonuses, commissions, tips and paid time off, each with hours, rate and amount.
• Pre-tax deductions: money taken out before some or all taxes, such as a traditional 401(k) contribution.
• Taxes: federal income tax withholding, Social Security, Medicare, and state or local tax where it applies.
• After-tax deductions and net pay: items such as Roth 401(k) contributions or union dues, then what is actually paid to you.

Next to most lines you will see two columns: current (this paycheck) and YTD (year to date, everything since January 1).

What is the difference between gross pay and net pay?

Gross pay is what you earned before anything comes out. For a salary it is the yearly amount divided by the number of pay periods; for hourly work it is hours × rate, plus overtime. Net pay is what lands in your account after every deduction and tax.

The gap between the two is often bigger than people expect, which is why a raise can feel smaller than it looked in the offer. Our raise vs. inflation check uses gross pay for that reason: it is the number both you and your employer can see.

What does a worked example look like?

Take a $52,000 salary paid every two weeks (26 paychecks), with 5% going into a traditional 401(k):

We stop before federal income tax on purpose. That line depends on the W-4 you gave your employer, your filing status and any other income, so any single figure here would be a guess. The two payroll taxes, on the other hand, are flat rates you can check to the cent.

Notice that Social Security and Medicare are worked out on the full $2,000.00, not on $1,900.00. That's not a mistake.

Which deductions are taken before tax?

A traditional 401(k) contribution is not subject to federal income tax withholding when it is made, but it is still counted as wages for Social Security and Medicare, according to the IRS. So on a stub you may see two different wage figures: a lower federal taxable wage and a higher Social Security / Medicare wage. At the end of the year the same split shows up on your W-2.

A Roth 401(k) works the other way round. Some plans let you make deferrals after tax as designated Roth contributions, so they don't lower your taxable wage at all. If you switched from traditional to Roth and your net pay dropped slightly, this is why.

How do I check the Social Security and Medicare lines?

These are the easiest lines on the stub to audit, because the rates are fixed:

• Social Security: 6.2% of your Social Security wages, until your wages for the year reach the wage base ($184,500 in 2026, $192,300 in 2027, per the Social Security Administration). Above that, this line should drop to zero for the rest of the year. Our explainer on the 2027 Social Security wage base shows what that does to take-home pay.
• Medicare: 1.45% of all Medicare wages, with no cap. Once your wages from one employer pass $200,000 in a year, the employer must also withhold an extra 0.9% Additional Medicare Tax on the amount above that (IRS).

The year-to-date columns make a good cross-check. After 10 paychecks in the example, YTD gross is $20,000.00, so YTD Social Security should be $1,240.00 and YTD Medicare $290.00. If the YTD figures drift away from 6.2% and 1.45% of YTD wages, ask payroll why.

Is my federal income tax withholding right?

Federal income tax withholding is an estimate, built from the Form W-4 you filled in when you started. Too little and you owe at tax time; too much and you have lent the government money for free until your refund arrives.

The IRS Tax Withholding Estimator is built for exactly this question. It asks for your most recent pay stubs (and a spouse's, if you file jointly), your last tax return and any side income, and it takes about 25 minutes. The IRS suggests checking each January and after big changes such as a new job or marriage. If you also earn money on the side, our guide to setting aside tax on side income explains how raising your paycheck withholding can cover it.

What should hourly workers check?

1. Hours: compare the hours on the stub with your own record. A phone note with start and end times each day is enough.
2. Overtime: for non-exempt workers, hours over 40 in a workweek must be paid at least 1.5 times the regular rate. Our overtime guide shows how to check a two-week pay period week by week.
3. Rate changes: if you got a raise, check the date it started and that every hour after it uses the new rate.
4. Bonuses: a promised attendance or production bonus may also need to be included in your overtime rate.

What if my employer doesn't give me a pay stub?

The federal Fair Labor Standards Act requires employers to keep accurate records of hours worked and wages paid, but it does not require them to give employees pay stubs (U.S. Department of Labor). Many states set their own rules on pay statements, so your state labor department is the place to check.

Either way, your own record is your best protection. Write down hours, keep each stub or payment notice, and compare them with the W-2 you receive in January.

What are the five checks to do every payday?

1. Gross pay matches your salary ÷ pay periods, or your hours × rate plus overtime.
2. Pre-tax deductions match what you signed up for (the right 401(k) percentage, the right plan).
3. Social Security is 6.2% and Medicare 1.45% of the right wage figure.
4. Net pay matches what reached your bank account.
5. The YTD columns grew by exactly this paycheck's amounts.

Once a year, add one more: work out your true hourly wage from your net pay, so you know what an hour of your time is really worth.

Assumptions: a $52,000 salary, 26 equal paychecks, a 5% traditional 401(k) deferral and no other deductions. Federal, state and local income taxes are left out because they depend on your W-4 and personal situation. General information, not tax advice.

Common questions

Why is my Social Security wage higher than my federal taxable wage?

Traditional 401(k) deferrals come out before federal income tax but not before Social Security and Medicare. So the Social Security and Medicare wage on your stub (and later on your W-2) can be higher than the federal taxable wage.

Does my employer have to give me a pay stub?

Not under federal law. The Fair Labor Standards Act requires employers to keep accurate records of hours and pay, but it does not require pay stubs. Many states set their own rules, so check your state labor department.

How long should I keep my pay stubs?

At least until you have checked them against your W-2 at the end of the year. Keeping them with your tax records is a simple habit, and they help if you ever need to dispute hours or overtime.

My net pay changed but my salary didn't. Why?

Look at the deductions first. A new benefits year, a changed 401(k) percentage, a new W-4 or reaching the Social Security wage base can all move net pay without any change to gross pay.

This article is general education, not personal financial advice. Figures in worked examples are calculated from the assumptions stated with them and are not forecasts.