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

Your pay stub contains a wealth of information about your earnings and deductions — but it can look like a wall of confusing abbreviations. This complete 2026 guide walks through how to read a pay stub line by line, what every abbreviation means, how to spot errors, and how to verify your withholding is correct.

What Is a Pay Stub?

A pay stub (also called a paycheck stub, pay slip, earnings statement, or check stub) is a document your employer provides with each paycheck detailing:

Earnings for the current pay period
All tax withholdings (federal, state, local, FICA)
Voluntary and involuntary deductions (insurance, 401(k), garnishments)
Net pay (your actual take-home amount)
Year-to-date (YTD) cumulative totals for everything above

In the era of direct deposit, “pay stubs” are usually electronic PDFs delivered through your employer’s payroll portal (ADP, Workday, Gusto, Paychex, Paylocity, Justworks, BambooHR, Rippling, etc.). The IRS requires employers to provide pay stub information, but specific format and frequency are governed by state law.

State pay stub laws vary

Most states require employers to provide written pay stubs (or electronic equivalents). About 11 states (including South Carolina, Mississippi, and Florida) don’t require pay stubs at all but most employers provide them anyway. California has the strictest requirements — pay stubs must show 9 specific items including total hours worked, all rates, and accrued sick leave balance.

Pay Stub Sections Explained (Line by Line)

1. Header & employee information

Your pay stub starts with identification:

Employer name and address
Employee name and ID number
Pay period dates (e.g., “April 1 – April 14, 2026”)
Pay date (when the funds hit your account, e.g., “April 22, 2026”)
Check or direct deposit number

Verify the pay period dates match what you actually worked. A common error is being paid for the wrong period after switching from biweekly to semimonthly.

2. 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 (federal FLSA rules; some states require 1.5× over 8 hours/day)
Holiday pay, PTO, sick time, vacation — paid at your regular rate; often shown as separate line items
Bonuses and commissions — may appear on a separate stub or noted as “supplemental wages”
Shift differential — extra pay for nights, weekends, holidays
Tips (reported tips for tipped workers)
Reimbursements — typically NOT in gross (they’re separately listed and not taxable)

Salaried employees see annual salary divided by pay periods (24 if semimonthly; 26 if biweekly; 52 if weekly).

Hourly workers see hours × rate. Overtime is shown separately at the higher rate.

3. Federal Income Tax Withholding (FWT / FIT)

The amount your employer withholds for federal income taxes. This is calculated based on your W-4 form selections:

Filing status (single, married, head of household)
Number of dependents (or specific dollar adjustments since 2020)
Other adjustments (additional withholding, deductions, multiple jobs)

The IRS publishes withholding tables (Pub 15-T) employers use to calculate this. The amount withheld is an estimate of your eventual tax liability — your actual tax owed is determined when you file your return. If too much was withheld, you get a refund; too little, you owe.

Tip: If you consistently get large refunds (>$1,500), you’re over-withholding — you’re giving the government an interest-free loan. Update your W-4 to reduce withholding. Use our W-4 Calculator to find the right adjustment. If you typically owe $1,500+, increase withholding to avoid underpayment penalties.

4. State Income Tax (SWT / SIT)

State tax withholding — varies dramatically by state. Key categories:

Nine states have no state income tax:

Alaska, Florida, Nevada, New Hampshire (no wage tax), South Dakota, Tennessee, Texas, Washington, Wyoming

Flat-rate states (single rate for all income):

Arizona (2.5%), Colorado (4.4%), Illinois (4.95%), Indiana (2.95% in 2026), Massachusetts (5%), Michigan (4.25%), North Carolina (3.99% in 2026), Pennsylvania (3.07%), Utah (4.85%), and others

Progressive states (multiple brackets):

California (1%–13.3%), New York (4%–10.9%), Hawaii, Oregon, Minnesota, etc.

The state withholding line shows the amount based on your state W-4 equivalent (state tax form).

5. Local Income Tax (City / County)

If you live or work in certain jurisdictions, local income tax is also withheld. Common examples:

NYC residents: ~3.078–3.876% NYC city tax (in addition to NY state)
Yonkers residents: 16.75% surcharge on state tax
Philadelphia: 3.74% wage tax (residents); 3.44% (non-residents working in city)
Detroit: 2.4% (residents); 1.2% (non-residents)
Columbus, OH: 2.5% city income tax
Indianapolis: 2.02% Marion County local income tax
Many smaller Ohio, Pennsylvania, and Maryland jurisdictions also have local income taxes

6.2% of your gross pay, up to the 2026 wage base of $184,500. On your stub, you may see “OASDI” (Old-Age, Survivors, and Disability Insurance), “FICA-SS,” or “Social Security.” Once your YTD wages cross $184,500, Social Security withholding stops for the rest of the year — your paycheck will increase by 6.2% from that point.

Your employer pays a matching 6.2% (employer side). Self-employed individuals pay both halves (12.4%) on Schedule SE.

7. Medicare (FICA-Med)

1.45% of all gross pay with no wage cap. Look for “FICA-Med,” “Medicare,” or “MEDI” on your stub.

Additional Medicare Tax of 0.9% kicks in once YTD wages cross $200,000 (single) or $250,000 (married filing jointly). This is automatic — your employer adds the 0.9% withholding once you cross $200K, regardless of filing status. You’ll reconcile to the correct amount on your tax return based on actual filing status.

8. Pre-Tax Deductions

These reduce your taxable income BEFORE federal income tax (and usually state tax) is calculated:

401(k) / 403(b) / 457(b) — traditional retirement contributions (limit $24,500 in 2026; $32,500 with 50+ catch-up)
Health insurance premiums — medical, dental, vision (your portion of employer-sponsored plans)
HSA (Health Savings Account) — limit $4,400 single / $8,750 family in 2026 (HDHP required)
FSA (Health Flexible Spending Account) — $3,400 limit in 2026
DCFSA (Dependent Care FSA) — $5,000 limit
Commuter benefits — transit passes or qualified parking (~$340/month limit in 2026)
Group Term Life Insurance under $50,000 coverage
Long-term disability premiums (varies by employer plan)

Pre-tax deductions reduce both federal income tax AND FICA tax in some cases (HSA, 401(k) reduce income tax; FSA and HSA reduce FICA too if Section 125 cafeteria plan).

9. Post-Tax Deductions

Taken after taxes are calculated (no tax benefit):

Roth 401(k) / Roth 403(b) — after-tax retirement contributions (same total contribution limit as traditional)
Roth IRA contributions (rare via payroll; usually outside payroll)
Life insurance for coverage above $50,000 (employer-provided over $50K is taxable income)
Disability insurance (some plans)
Garnishments — court-ordered withholding for child support, debt, taxes, defaulted student loans
Union dues
Charitable contributions through workplace giving programs (e.g., United Way payroll deduction)
Stock purchase plans (ESPP) — typically post-tax payroll deduction

10. Net Pay (Take-Home)

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

For most workers, net pay is 70–80% of gross. Specific factors that lower the percentage:

Higher salary (higher tax brackets)
States with high income tax (CA, NY, OR, HI, NJ)
High pre-tax 401(k) contributions
Heavy benefit deductions (family health insurance can be $500–$1,000/paycheck)

11. YTD (Year-to-Date) Totals

Cumulative totals for the calendar year for every category — gross, each tax, each deduction, net.

Why YTD matters:

Verifying your W-2 at year-end — Box 1 should equal YTD gross minus pre-tax deductions
Tracking 401(k) contributions to make sure you don’t exceed annual limit
Watching FICA wage base — when YTD wages cross $184,500, your paycheck jumps
Filing taxes — your December YTD totals should match your W-2

12. Leave / PTO Balances

Most pay stubs show:

Vacation/PTO balance (hours available, hours used YTD)
Sick leave balance
Floating holidays (if applicable)

California requires sick leave balance be shown on every pay stub. Many employers go beyond the legal minimum and show all balances.

Common Pay Stub Abbreviations Decoded

Abbreviation	Meaning
FWT / FIT	Federal Withholding Tax / Federal Income Tax
SWT / SIT	State Withholding Tax / State Income Tax
OASDI	Old-Age, Survivors, and Disability Insurance (Social Security portion of FICA)
FICA	Federal Insurance Contributions Act (Social Security + Medicare combined)
FICA-SS	FICA Social Security portion (6.2%)
FICA-Med	FICA Medicare portion (1.45%)
Med-EE	Medicare employee contribution
YTD	Year-to-Date
PP	Pay Period
PR	Payroll
ER	Employer (e.g., “ER Match” = employer 401(k) match)
EE	Employee (e.g., “EE 401k” = employee contribution)
GTL	Group Term Life Insurance (employer-provided over $50K is taxable)
STD / LTD	Short-Term / Long-Term Disability insurance
HSA	Health Savings Account (pre-tax with HDHP)
FSA / HCSA	Flexible Spending Account / Health Care Spending Account
DCFSA	Dependent Care FSA
HMO / PPO / POS	Health insurance plan types
DEP CARE	Dependent care benefits
DD	Direct Deposit
EIN	Employer Identification Number (federal tax ID)
REG	Regular hours
OT	Overtime
HOL	Holiday pay
PTO	Paid Time Off
SICK	Sick leave
JURY	Jury duty pay
BEREAV	Bereavement leave
BONUS / SUPP	Bonus / Supplemental pay
COMM	Commission
TIPS	Reported tip income
SHIFT	Shift differential pay
RETRO	Retroactive pay (back pay for missed wages)
GARN	Garnishment
CHSP / CSPT	Child support
UNION	Union dues
PARK	Parking benefit
TRANS	Transit benefit
RSU	Restricted Stock Units (vesting income)
ISO / NQSO	Stock options (incentive vs non-qualified)
ESPP	Employee Stock Purchase Plan
WC	Workers’ Compensation
SUI / SDI	State Unemployment Insurance / State Disability Insurance

State-specific abbreviations (CA, NJ, NY, RI, etc.):

State	Abbreviation	Meaning
CA	CA SDI	California State Disability Insurance (1.1% in 2026)
CA	CA PFL	California Paid Family Leave
NJ	NJ SUI / SDI / FLI	NJ Unemployment / Disability / Family Leave
NY	NY SDI	NY State Disability (max ~$0.60/week)
NY	NY PFL	NY Paid Family Leave
OR	OR PFML	Oregon Paid Family & Medical Leave
WA	WA L&I / PFML	WA Labor & Industries / Paid Family Leave
MA	MA PFML	Massachusetts Paid Family & Medical Leave
CT	CT PFL	Connecticut Paid Family Leave
CO	CO PFML	Colorado Paid Family & Medical Leave (FAMLI)

How to Verify Your Pay Stub Is Accurate

Walk through this checklist every pay period (or at least monthly):

1. Verify gross pay

For salaried workers: annual salary ÷ pay periods. ($80,000 annual ÷ 26 biweekly = $3,076.92 per paycheck)
For hourly: hours × rate matches your timesheet
Overtime: hours over 40 × 1.5× rate

2. Verify FICA

Social Security: 6.2% × gross (until YTD reaches $184,500)
Medicare: 1.45% × gross
Additional Medicare 0.9% if YTD > $200,000

3. Verify federal withholding

Compare to IRS withholding estimate based on your W-4. Use our W-4 Calculator to estimate.
Significantly different? Check that your W-4 is current.

4. Verify state withholding

For flat-tax states: rate × (gross − pre-tax deductions). Easy to verify.
For progressive states: harder to verify per pay period; check at year-end against state tax owed.

5. Verify deductions

401(k) contribution: % of gross or fixed amount you elected
Health insurance: matches your benefit enrollment portal
HSA/FSA: matches your election

6. Verify net pay

Gross − all taxes − all deductions = net
Verify this hit your bank account in full

7. Verify YTD totals

Each YTD number should equal the prior pay stub’s YTD plus current period amount
At year-end, YTD should match your W-2

What to Do If Your Pay Stub Is Wrong

Document the error — screenshot or PDF of the stub, note specific discrepancy
Compare your hours worked against the hours shown
Verify your pay rate matches your offer letter or last raise
Check that all deductions match your benefit elections in the HR portal
Contact HR or payroll IMMEDIATELY with specific discrepancy and supporting documents
Request a corrected stub if errors are confirmed
For underpayment: request the missing amount in next paycheck or as separate check
For tax over-withholding: the correction is automatic at year-end (refund); you don’t typically get money back mid-year
Keep records of all communications — email is better than verbal
Escalate if not resolved within 1-2 pay periods — your state’s labor department or DOL Wage and Hour Division can help

Pay Stub Forms by Pay Frequency

Different pay frequencies create different stub patterns:

Weekly (52 paychecks/year): Smallest amounts per check; easier to budget weekly
Biweekly (26 paychecks/year): Most common; 2 months per year have 3 paychecks
Semimonthly (24 paychecks/year): Same dates each month (1st and 15th, or 15th and last day)
Monthly (12 paychecks/year): Largest single check; common for salaried executives, government workers

The amounts per check differ but YTD totals are identical. A $80,000 salary yields:

$1,538.46 weekly × 52
$3,076.92 biweekly × 26
$3,333.33 semimonthly × 24
$6,666.67 monthly × 12

All add up to the same $80,000 annually.

Pay Stubs and Lender Verification

Lenders (mortgage, auto, personal loan, refinance) typically request:

Most recent 2 pay stubs (verify current employment and rate)
Most recent 2 years of W-2s (verify income history)
Year-to-date earnings confirmation (matches what you’ve actually earned this year)
For self-employed: 2 years of tax returns instead

Tip: If you’re applying for a mortgage, request a “letter of employment” from HR confirming your salary and start date — many lenders require this in addition to pay stubs.

Pay Stub Storage Recommendations

Keep at least 1 year to reconcile against your W-2
Keep 2-3 months current for loan applications
Save digitally — most payroll systems let you download PDFs; back them up
After verifying W-2, you can shred older stubs (the W-2 is the official record)
Keep stubs longer if you’re self-employed (need them for tax substantiation), if you’ve been audited, or if there are discrepancies you might need to prove later

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 (401(k), insurance), and net pay for that period. It also shows year-to-date cumulative totals. In the era of direct deposit, pay stubs are usually electronic PDFs delivered through your employer’s payroll portal.

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 the $184,500 wage base in 2026) and Medicare (1.45% on all wages, no cap). Combined, FICA takes 7.65% from your paycheck. Your employer pays a matching 7.65%. High earners over $200K pay an additional 0.9% Medicare surcharge.

Why is my net pay less than I expected?

Net pay is often 20–35% less than gross pay due to federal tax (10–37% bracket), state tax (0–13.3% depending on state), Social Security (6.2%), Medicare (1.45%), and pre-tax deductions like 401(k) and health insurance. 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. The percentage varies by state — Texas/Florida workers keep more (no state tax) while California/New York workers keep less.

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. Self-employed individuals or those who’ve been audited should keep records longer.

Once your year-to-date wages cross the Social Security wage base ($184,500 in 2026), Social Security withholding stops for the rest of the calendar year. This typically happens to high earners around October-November. Your paycheck will increase by 6.2% from that point until January when it resets. Medicare (1.45%) continues throughout the year with no cap.

What’s the Additional Medicare Tax I see on my stub?

Once your year-to-date wages cross $200,000 (single filer), employers automatically withhold an additional 0.9% Medicare tax. The actual filing threshold is $200K single / $250K married, so the employer withholds based on the lower threshold and you reconcile on your tax return. If married filing jointly with combined income just over $200K each spouse, you may get some back at year-end.

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

Federal law (FLSA) requires employers to keep payroll records but doesn’t mandate giving stubs to employees. State laws vary — most states require pay stub disclosure, but about 11 (including Florida, South Carolina, Mississippi) don’t require it. If you’re not getting one, request it formally in writing — most employers comply. If they refuse, contact your state’s labor department.

Can I create my own pay stub?

Most legitimate employers automatically provide pay stubs. You shouldn’t need to create your own. Online “pay stub generators” exist but be cautious — using a fabricated pay stub for loan applications is fraud. If you’re self-employed and need to verify income, use bank statements, 1099s, or tax returns instead.

How do I read a pay stub for the first time?

Start with these key numbers in this order:

Gross pay (top section) — what you earned
Federal income tax — what was withheld for federal
State income tax — what was withheld for state (if applicable)
FICA Social Security (6.2%) and Medicare (1.45%)
Pre-tax deductions (401(k), health, HSA) — reduce taxable income
Post-tax deductions (Roth, garnishments, etc.)
Net pay — what hit your bank account
YTD totals — cumulative for the year

Compare your math: gross − all taxes − all deductions should equal net. If anything doesn’t add up, contact HR.

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

State-specific paycheck calculators: California · Texas · New York · Florida · Illinois · Pennsylvania

Tax tools: W-4 Calculator · Federal Tax Calculator · Self-Employment Tax