How to Read Your Pay Stub, Line by Line
Your pay stub is the most detailed record you get of your own money, and most people glance at one number on it. Here's what every section means, and what's worth checking.
The top: who, when and how much
- Pay period: the dates you worked. The pay date is when the money arrives. They're usually different.
- Hours: regular hours, overtime hours, and any paid time off.
- Rate: your hourly rate, or your salary for the period.
Gross pay
Gross pay is everything you earned before anything comes out: regular pay, overtime, shift differentials, bonuses and commissions. Check the hours and rates here first. Mistakes are more common than you'd think, especially with overtime.
Pre-tax deductions
These come out before some or all taxes are figured, which lowers your taxes:
- Health, dental and vision insurance premiums (usually lowers income tax and Social Security and Medicare)
- Traditional 401(k) or 403(b) contributions (lowers federal income tax, but not Social Security and Medicare)
- Health savings account (HSA) or flexible spending account (FSA) contributions
Taxes
- Federal income tax: based on your pay and your Form W-4.
- Social Security: 6.2% of your pay, up to a yearly limit ($184,500 in 2026).
- Medicare: 1.45% of your pay, with no limit. Above $200,000 in a year, your employer withholds an extra 0.9%.
- State income tax: most states; nine don't tax wages.
- Local tax: some cities, counties and school districts.
After-tax deductions
These come out after taxes: Roth 401(k) contributions, some life or disability insurance, union dues, wage garnishments and charitable payroll giving.
Net pay
Net pay is what actually lands in your account: gross pay minus everything above. It's the number to budget with.
Year-to-date (YTD) columns
Most stubs show each line twice: this period, and the total so far this year. The YTD column is useful for:
- Seeing how much federal tax you've had withheld so far, which tells you whether you're on track for a refund or a bill.
- Spotting when Social Security stops coming out (if you're a high earner past the yearly limit).
- Checking that your retirement contributions are adding up the way you planned.
Three things worth checking on every stub
- Hours and overtime. Do they match what you worked?
- Deductions you didn't sign up for, or ones that changed without notice.
- Federal withholding that suddenly jumps or drops. That can mean a W-4 change or a payroll error.
Keep them
Keep your stubs at least until you've filed your taxes for the year, longer if there's ever a question about your pay. They're your proof if something's wrong.
IncomeSync is built around the pay stub: enter one, and it learns how your employer's withholding actually works, so your projected paychecks for the rest of the year match your real ones.