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Reviewed by PayslipIQ Editorial Team, in-house payroll editor
Last reviewed May 2026 · Editorial standards

How to Read a US Pay Stub

A US pay stub has six sections. Earnings. Taxes. Pre-tax deductions. Post-tax deductions. Employer contributions. Net pay. Each usually has a current-period column and a year-to-date column. Here is what each part is for.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Section 1: Earnings

Gross pay broken down by earning type. For an hourly worker: regular hours times rate, overtime hours times overtime rate. For salaried: a flat regular line. Plus any bonus, commission, holiday pay, sick pay, PTO.

YTD column shows total earned in the calendar year so far.

Section 2: Taxes withheld

  • Federal income tax (FED, FIT) - calculated per W-4 + IRS Publication 15-T
  • Social Security (SS, SOC SEC, OASDI) - 6.2 percent up to wage base
  • Medicare (MED) - 1.45 percent on all wages, plus 0.9 percent above thresholds
  • State income tax (ST, SIT) - per state rules
  • Local tax (LOC, LIT, LST) - if applicable
  • State disability/PFL premiums - in CA, NY, NJ, RI, HI, MA, CT, OR, CO, WA

Section 3: Pre-tax deductions

Reduce taxable wages. 401(k), 403(b), traditional HSA, FSA, Section 125 health insurance, dental, vision, commuter benefits.

Section 4: Post-tax deductions

Come out of net. Roth 401(k), garnishments, after-tax life insurance, union dues, 401(k) loan repayments.

Section 5: Employer contributions (informational)

Money your employer contributes on your behalf. 401(k) match, employer-paid health insurance, employer FICA match, HSA employer match. Does NOT reduce your pay. Listed for transparency.

Section 6: Net pay

What hits your bank account. Direct deposit usually shown with last 4 digits of the account.

The header / employee info

Pay period (start and end dates), pay date, employee ID, employer name and address, your name and last 4 of SSN.

Reading tip

Always check YTD totals against your last pay stub plus the current period. They should add up. A YTD discrepancy is one of the most common payroll errors.

Frequently asked questions

What does YTD mean?
Year to Date. Cumulative total from January 1 to the pay period end date. Compare YTD across pay stubs to spot errors.
What are employer contributions on my pay stub?
Money your employer pays on your behalf (401(k) match, employer health premium, employer FICA match). Listed for transparency. Does not reduce your pay.
Why do my taxable wages not match my gross?
Pre-tax deductions (401(k), HSA, Section 125 health insurance) reduce taxable wages. The Federal Taxable Wages line on your stub is gross minus those deductions.
What does FED mean on my pay stub?
Federal income tax withholding. Sometimes labeled FIT or Federal Tax.

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