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

Your pay stub explains how your employer turned your earnings into the amount deposited in your bank account. Reading it line by line makes it easier to catch errors and understand why your take-home pay changed.

Gross Pay vs. Net Pay

Gross pay is what you earned before taxes and deductions. Net pay is your take-home amount after withholding and deductions. For hourly workers, verify the hours and rate. For salaried workers, confirm the pay period and annual-salary conversion.

Federal and FICA Withholding

Federal income-tax withholding is based on wages and the W-4 information you gave your employer. Social Security and Medicare are FICA payroll-tax lines. They are separate from federal income-tax withholding.

State and Local Taxes

Your stub may show state income-tax withholding and, depending on where you live or work, local withholding. Local rules vary by jurisdiction. Compare the location on your stub with your employer records if a city or county line looks unfamiliar.

Pre-Tax and Post-Tax Deductions

Pre-tax deductions may include eligible retirement contributions, HSA contributions, and health-insurance premiums. Their tax treatment depends on the benefit. Post-tax deductions are taken after applicable taxes and can include items such as Roth retirement contributions or voluntary benefits.

Year-to-Date Columns

YTD means year-to-date. These columns show running totals since January 1. They help you check whether withholding and retirement contributions are tracking as expected.

Why Your First Paycheck May Look Wrong

A first paycheck may cover a partial period, miss a benefits election, use an outdated W-4, or reflect an incorrect work location. Compare the dates, hours, elections, and YTD totals, then contact payroll promptly if something does not match.

Start with gross pay

Verify gross wages match expected earnings: salary ÷ pay periods, or hourly rate × hours plus overtime. Bonus and commission lines should appear separately from regular wages on most stubs.

Identify each tax line

Federal income tax, Social Security, Medicare, state tax, and local tax (if any) appear as separate lines. Federal follows W-4 and IRS Publication 15-T. Social Security is 6.2% up to the wage base; Medicare is 1.45% on all wages.

Pre-tax deduction lines

401(k), HSA, health insurance, and commuter benefits reduce taxable wages before tax lines. Confirm deduction amounts match your open enrollment elections. See understanding your pay stub for line-by-line definitions.

Post-tax deductions

Roth 401(k), union dues, garnishments, and after-tax insurance reduce net pay after taxes. These do not reduce income tax withholding on the current check.

Net pay verification

Net should equal gross minus all taxes and deductions. Compare to your direct deposit confirmation. Split deposits across accounts may make bank deposits differ from the stub net line.

Year-to-date columns

YTD totals show cumulative withholding for the calendar year. Use YTD federal withholding to assess whether you are on track for expected annual liability. Large gaps suggest W-4 review.

When stub does not match calculator

Common causes: mid-year W-4 changes not yet reflected, state form differences, supplemental wage payments, or employer-specific benefit coding. Re-run the paycheck calculator with exact stub inputs before contacting payroll.

Related guides

Paycheck deductions explained, paycheck withholding guide, and new job first paycheck.

Frequently Asked Questions

Correction and reversal entries

Payroll corrections may appear as separate negative or positive adjustment lines on a subsequent stub. Match correction entries to HR or payroll communications explaining the adjustment period.

Imputed income lines

Group life insurance above IRS thresholds, gym benefits, and domestic partner coverage may create imputed income taxable on your stub even when no cash changes hands.

Frequently Asked Questions

Figures and methods are based on official-source data encoded in the calculator. Not tax advice. Review the methodology and consult a qualified professional for your situation.