How to Read Your Pay Stub: Every Line Explained

Most Americans glance at their paycheck amount and move on. But reviewing your pay stub carefully every pay period can help you:

• Catch payroll errors (more common than you think) before they become larger problems
• Verify your pre-tax deductions are being applied correctly
• Track your year-to-date withholding to avoid tax surprises in April
• Understand how a raise, new benefit election, or W-4 change affected your pay
• Monitor the Social Security wage base — you should stop paying SS tax once you cross $168,600

The top of your pay stub typically shows:

• Employee name and ID — verify this is correct, especially after a name change
• Pay period dates — the start and end date of the work period being paid
• Pay date — when the payment is issued (may differ from pay period end)
• Department/cost center — relevant for tracking if you work across departments
• Filing status — what your W-4 shows (should match your intended elections)

• Regular/Base Pay: Your standard compensation for the period based on salary or hours worked.
• Overtime (OT): Federal law requires at least 1.5× regular rate for hours over 40/week for eligible employees. Some states require daily overtime.
• PTO/Vacation Pay: Paid time off when taken is paid at your regular rate and taxed the same way.
• Bonus/Commission/Award: Supplemental wages — may be withheld at a flat 22% federal rate.
• Severance: Taxable at ordinary income rates.
• Imputed Income: Non-cash benefits the IRS requires to be reported as taxable income (e.g., employer-paid life insurance over $50,000, personal use of a company car).
• YTD (Year-to-Date): The cumulative total of each earnings type from January 1 to the current pay period. Important for tracking against tax withholding.

• 401(k) / 403(b): Your retirement contribution. Should match the percentage or flat amount you elected. YTD should not exceed $23,500 in 2026.
• Medical/Dental/Vision: Your share of employer-sponsored health insurance premiums, paid pre-tax through a Section 125 plan.
• HSA (Health Savings Account): Contributions to your HSA. Triple tax-free: pre-tax contribution, tax-free growth, tax-free medical withdrawals.
• FSA (Flexible Spending Account): Pre-tax election for healthcare or dependent care expenses. Use it or lose it (with limited rollover).
• Commuter Benefits: Pre-tax transit pass or parking contributions, up to $315/month each in 2024.
• Disability/Life Insurance: May be pre-tax depending on the plan.

• Federal Income Tax (FIT): Estimated federal tax withheld for the period based on your W-4 elections. May show as "Fed Tax" or "FWT."
• Social Security (OASDI): 6.2% of gross wages up to $168,600 YTD. Should stop once YTD wages exceed the wage base.
• Medicare (Med): 1.45% of all wages with no cap. Rises to 2.35% once YTD exceeds $200,000 (single).
• State Income Tax (SIT/SWT): State withholding based on your state W-4. Zero if you live in a no-income-tax state.
• Local Tax: City or county income tax, where applicable (NYC, Philadelphia, etc.).
• State Disability (SDI/SUI): California, New York, New Jersey, and a few other states deduct disability insurance from paychecks.
• NY Paid Family Leave (PFL): New York employees pay 0.373% of gross wages (up to a cap) for paid family leave insurance.

• Roth 401(k): After-tax retirement contributions. Taxed now, but withdrawals in retirement are tax-free.
• Life Insurance (supplemental): Employee-elected additional life insurance, typically post-tax.
• Wage Garnishments: Court-ordered deductions (student loan default, child support, tax levy). Shows as "Garnishment" or "Levy."
• Union Dues: Deducted post-tax for union members.
• Charitable Contributions: If you elected payroll giving through United Way or similar programs.

Net Pay = Gross Pay − Pre-Tax Deductions − Tax Withholding − Post-Tax Deductions

To verify your pay stub manually:

1. Check that gross pay matches your expected hours × rate (hourly) or salary ÷ pay periods (salaried).
2. Verify pre-tax deductions match your benefit elections.
3. Use our Paycheck Calculator to verify tax withholding is approximately correct.
4. Check Social Security YTD — once it reaches $168,600, OASDI deductions should stop for the year.
5. Confirm direct deposit bank account information is correct.

If you find an error, report it to your payroll or HR department immediately. Keep copies of your pay stubs for tax filing purposes (you will need W-2 info from them if your W-2 arrives with an error).