How to Read Your Paycheck Stub: Line by Line

By the USPaycheckGuide Editorial Team · Reviewed by Shaharyar Abid · Last updated September 26, 2026

A pay stub is the only place where your employer shows how your salary turns into the deposit in your bank account, yet most people glance at the bottom line and never look further. Learning how to read your paycheck stub takes ten minutes and can save you real money: it helps you catch errors, understand your benefits, fix withholding, and prepare for tax season. This guide walks through every section you are likely to see, with a worked example and a checklist you can use on your next pay date.

1. The basic layout of a pay stub

Formats differ between payroll providers, but almost every pay stub is split into the same blocks. At the top are the employer name, your name, the pay period dates and the pay date. Below that come the earnings section, the taxes section, the deductions section and a summary that shows current and year-to-date totals. Many stubs also list paid time off balances and direct deposit details. Once you recognize these blocks, any pay stub becomes readable.

Keep in mind that the pay period is not always the same as the pay date. Employers often pay a week or several days after a period ends. If your stub confuses you about the schedule, our comparison of biweekly and semi-monthly pay explains why your paycheck count can differ from month to month.

2. Earnings: gross pay explained

The earnings section lists everything you were paid before any deduction. For salaried employees, it is usually one line showing regular pay for the period. For hourly employees, expect a line showing hours, the hourly rate and the amount, plus separate lines for overtime, holiday pay, shift differentials, tips, commissions or bonuses. The sum of these lines is your gross pay for the period.

Check the hours and the rate first. A wrong rate, a missing overtime line or unpaid hours are the most common errors. Overtime for non-exempt employees is generally paid at one and a half times the regular rate for hours over 40 in a week under federal law, and some states have stricter rules. Use the overtime calculator to verify the math.

3. Taxes: what is withheld and why

The taxes section typically has four core lines. Federal income tax is withheld based on your Form W-4 and the IRS withholding tables. Social Security (often labeled OASDI) is 6.2% of wages up to the annual wage base. Medicare is 1.45% of all wages. State income tax appears if your state has one, and some stubs list local or city tax and state disability or family leave contributions as well.

Together, Social Security and Medicare make up the FICA taxes discussed on our what is FICA tax page. Federal income tax withholding is the line you can most easily change, by submitting a new W-4. If you always get a large refund, or you owe every April, the fix starts here. Our W-4 guide and W-4 withholding calculator walk you through it.

4. Why your first paycheck often looks different

New hires frequently see a smaller or larger first check than they expected. Reasons include a partial pay period, delayed benefit enrollment that catches up with double deductions, and payroll systems that use default withholding until your W-4 is processed. Employers must use single filer withholding with no adjustments if you never submit a W-4, which usually means more tax withheld than necessary. Submit your form on day one and review your second stub to be sure everything is settled.

5. Deductions: pre-tax and post-tax

Deductions are amounts your employer takes out for benefits and other items. Pre-tax deductions, such as traditional 401(k) contributions, health, dental and vision premiums, HSAs and flexible spending accounts, reduce the wages subject to income tax. Some, like health premiums through a cafeteria plan, also reduce FICA wages. Post-tax deductions, such as Roth 401(k) contributions, life insurance above certain limits, union dues, charitable payroll giving and wage garnishments, come out after taxes.

Look at each deduction and confirm you signed up for it. Employer 401(k) matches often appear as an informational line rather than a deduction. If you are not capturing the full match, you may be leaving free money on the table; our 401(k) calculator can show the long-term difference.

6. Net pay and year-to-date totals

Net pay, also called take-home pay, is gross pay minus all taxes and deductions. It is the amount deposited into your account, which may be split across several accounts if you set that up. The year-to-date columns show running totals for each line since January 1. They are invaluable at tax time, because your final pay stub of the year should match the figures on your Form W-2, and they help you notice when you have hit the Social Security wage base and your take-home pay increases.

Your paid time off section, if present, lists hours accrued, used and remaining. Save your stubs or download them from your employer portal; you may need them for loan applications, rental applications and disputes.

7. Worked example: a biweekly stub

Imagine a single employee paid biweekly with an annual salary of $65,000. Gross pay per period is $2,500.00. Suppose $100 goes to a traditional 401(k) and $60 to health premiums. Social Security is 6.2% of gross wages, which is $155.00, and Medicare is 1.45%, which is $36.25. The employer's payroll system will estimate federal income tax from the W-4 and withholding tables; for a typical single filer at this level it is often somewhere near a few hundred dollars per period. Any state tax comes next. What remains is net pay.

The exact numbers vary, so use the paycheck calculator to compare your own stub with an independent estimate. If your figures are more than a few percent apart, look for extra deductions, local taxes or a W-4 entry that increases withholding.

8. Pay stub glossary: terms you will see

Exempt and non-exempt: exempt employees are usually salaried and not entitled to overtime; non-exempt employees are generally paid by the hour and receive overtime. Imputed income: a taxable value assigned to a benefit such as employer-paid life insurance above a limit, which increases taxable wages without adding cash to your check. Supplemental wages: bonuses, commissions and similar payments, often withheld at a flat federal rate. Garnishment: a court-ordered deduction for debts such as child support or unpaid taxes. SDI or PFL: state disability or paid family leave contributions found in some states. Employer contribution: the amount your employer adds to your benefits, shown for information only. Cafeteria plan: a Section 125 plan that lets you pay certain benefits before tax.

When you are unsure about a label, ask your payroll or HR team to explain it. It is a routine question, and it helps them fix errors early. If you are comparing offers from different employers, translate everything to the same basis first, using the hourly to salary calculator so you are not fooled by different pay frequencies.

9. A 10-minute pay stub audit

1. Confirm the name, pay period dates and pay date.
2. Check hours and pay rate against your own records, including overtime.
3. Recalculate Social Security (6.2%) and Medicare (1.45%) on taxable wages.
4. Verify the federal filing status and allowances match your latest W-4.
5. Match each benefit deduction to your enrollment choices.
6. Compare year-to-date totals with the previous stub to be sure they add correctly.
7. Check the net pay deposit against your bank statement.

10. Common pay stub mistakes and red flags

• Missing overtime or wrong rate. Report it to payroll in writing as soon as you notice.
• Unexpected deductions. Ask what they are and whether you authorized them.
• Wrong state or local tax. This often happens after a move or when working in a different state.
• Old W-4 on file. Marriage, a new child or a second job all change the right withholding.
• Bonuses that look low. Supplemental wages are often withheld at a flat rate; see bonus tax explained.

If a problem is not corrected, you can contact your state labor department. The U.S. Department of Labor also publishes guidance on wage and hour rights.

11. Key takeaways

• Every stub has earnings, taxes, deductions and net pay sections.
• Gross pay minus taxes and deductions equals take-home pay.
• Only your W-4 lets you influence federal income tax withholding.
• Year-to-date totals should match your W-2 at year end.
• Audit a stub whenever your situation changes.

12. Hourly vs. salaried stubs

An hourly stub lists hours and rates for each type of pay: regular, overtime, holiday, sick and shift differential, so it is easy to check against your own time records. A salaried stub usually shows one salary line equal to your annual salary divided by the number of paychecks, plus any bonus or PTO lines. If you are salaried and non-exempt, you should still see overtime lines when you work more than 40 hours in a week.

13. What to do with a wrong pay stub

1. Write down the line, the amount you expected and why, using your offer letter, time records or W-4.
2. Send it to payroll or HR in writing and keep a copy.
3. Ask when the correction will appear; many employers fix errors on the next paycheck or issue an off-cycle check.
4. Check the next stub's year-to-date totals to confirm the correction.
5. If the problem is unpaid wages that are not fixed, contact your state labor department or the U.S. Department of Labor's Wage and Hour Division.

14. Electronic pay stubs and access

Many employers provide pay stubs only through an online portal. Save a PDF of each stub, or at least the last one of each year, because access often ends when you leave the job. If you need a stub for a loan or apartment application and cannot reach the portal, ask payroll for a copy; most states require employers to keep payroll records for several years.

Frequently Asked Questions

What is the difference between gross pay and net pay?

Gross pay is what you earn before any taxes or deductions. Net pay is the amount you actually receive after taxes and deductions.

What does YTD mean on a pay stub?

YTD stands for year to date. It shows the running total of earnings, taxes and deductions from January 1 through the current pay date.

What is OASDI on my pay stub?

OASDI means Old-Age, Survivors and Disability Insurance, which is the Social Security tax withheld at 6.2% of wages up to the annual wage base.

Why is my paycheck smaller than expected?

Common reasons include changes to your W-4, new benefit deductions, unpaid hours, additional withholding, a garnishment or local tax. Compare your stub with a paycheck estimate to find the gap.

Do I have a right to see my pay stub?

Federal law does not require pay stubs, but many states do, and most employers provide them electronically. Check your state labor department for the rules where you work.

How long should I keep my pay stubs?

Keeping stubs until you have checked them against your W-2, and ideally for at least a year, is common. Keep records longer if you need them for loans or disputes.

Why does my pay stub show money from my employer?

Lines marked ER show employer-paid amounts such as a 401(k) match or health premium share, which add to your compensation but not your paycheck.

Why do my year-to-date totals not match my pay stubs added up?

Corrections, off-cycle checks or bonuses paid separately can be included in YTD; ask payroll for a payroll register if they differ.

What does a negative number on a pay stub mean?

Usually a reversal or correction of an earlier payment or deduction.

What is the difference between current and YTD?

Current shows this paycheck; YTD totals everything since January 1.

What is a check number on a direct deposit stub?

A payroll reference number; it does not mean a paper check was issued.

Why does my stub show hours I did not work?

It may be paid time off, holiday pay or a correction; check the earnings line labels.

This article is for general education only and is not tax, legal or investment advice. Figures and rules change; confirm details with the IRS or a qualified professional before making decisions.