How to Read a Pay Stub: Every Line Explained (2026)

Your pay stub contains a wealth of information about your earnings and deductions — but it can look like a wall of abbreviations. Here’s how to read a pay stub line by line.

What Is a Pay Stub?

A pay stub (also called a paycheck stub, pay slip, or earnings statement) is a document your employer provides with each paycheck detailing your earnings, deductions, and net pay for that pay period — plus year-to-date (YTD) cumulative totals.

Pay Stub Sections Explained

1. Gross Pay (Earnings)

This is your total compensation before any deductions. It includes:

Regular hours — your standard hourly or salaried pay
Overtime — typically 1.5× your regular rate for hours over 40/week
Holiday pay, PTO, sick time — paid at your regular rate
Bonuses/commissions — may appear on a separate stub

2. Federal Income Tax Withholding (FWT / FIT)

The amount your employer withholds for federal income taxes. This is based on your W-4 form selections (filing status, dependents). It’s an estimate — your actual tax is determined when you file your return.

Tip: If you consistently get large refunds, you may be over-withholding. Use our take-home pay calculator to find the right withholding amount.

3. State Income Tax (SWT / SIT)

State tax withholding — varies by state. Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

6.2% of your gross pay, up to $176,100 for 2025. On your stub, you may see “OASDI” (Old-Age, Survivors, and Disability Insurance) or “FICA-SS.” Your employer pays a matching 6.2%.

5. Medicare (FICA-Med)

1.45% of all gross pay with no cap. If you earn above $200,000, an additional 0.9% applies. Look for “FICA-Med” or “Medicare” on your stub.

6. Pre-Tax Deductions

These reduce your taxable income:

401(k) / 403(b) — retirement contributions
Health insurance premiums — medical, dental, vision
HSA / FSA — health savings or flexible spending accounts
Commuter benefits — transit or parking pre-tax

7. Post-Tax Deductions

Taken after taxes are calculated:

Roth 401(k) — after-tax retirement contributions
Life insurance (employer-provided over $50,000)
Garnishments — court-ordered withholding
Union dues

8. Net Pay (Take-Home)

Your actual paycheck amount: Gross pay − all taxes − all deductions = net pay. This is what hits your bank account.

9. YTD (Year-to-Date) Totals

Cumulative totals for the calendar year. Check these against your W-2 at year end — Box 1 should match your YTD gross (minus pre-tax deductions).

Common Pay Stub Abbreviations

Abbreviation	Meaning
FWT / FIT	Federal Withholding Tax / Federal Income Tax
SWT / SIT	State Withholding Tax / State Income Tax
OASDI	Social Security (Old-Age, Survivors, Disability Insurance)
FICA	Federal Insurance Contributions Act (SS + Medicare)
YTD	Year-to-Date
ER	Employer contribution
EE	Employee contribution
GTL	Group Term Life Insurance

What to Do If Your Pay Stub Is Wrong

Compare your hours worked against the hours shown
Verify your pay rate matches your offer letter
Check that all deductions match your benefit elections
Contact HR immediately with specific discrepancies
Keep records of all communications

FAQs

What is a pay stub?

A pay stub is a document accompanying your paycheck that shows your gross earnings, all tax withholdings (federal, state, FICA), voluntary deductions (401k, insurance), and net pay for that period. It also shows year-to-date cumulative totals.

What does FICA mean on my pay stub?

FICA stands for Federal Insurance Contributions Act. It covers two taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages). Combined, FICA takes 7.65% from your paycheck. Your employer pays a matching amount.

Why is my net pay less than I expected?

Net pay is often 20–35% less than gross pay due to federal tax, state tax, Social Security, Medicare, and pre-tax deductions. Use our take-home pay calculator to verify your expected net pay based on your salary and state.

What is the difference between gross and net pay?

Gross pay is your total earnings before deductions. Net pay (take-home pay) is what you receive after all taxes and deductions. For a $75,000 salary, expect roughly $57,000–$62,000 net depending on your state and filing status.

Do I need to keep my pay stubs?

Keep pay stubs for at least one year to reconcile with your W-2. After verifying your W-2 is accurate, you can shred them. For mortgage applications, lenders typically request the last 2–3 months of pay stubs.

Try our Take Home Pay Calculator → See exactly what your paycheck should be after all deductions — for any US state.