Pay stub glossary

Every code, abbreviation, and acronym you might see on a US pay stub — translated into plain English.

Gross pay

Gross pay is everything you earned in the pay period before any taxes, retirement contributions, benefits, or other deductions are taken out.

Net pay · also: Take-home pay

Net pay is what hits your bank account after federal, state, local, FICA, retirement, benefits, and any other deductions are subtracted from gross pay.

Pre-tax deduction

Pre-tax deductions (e.g., 401(k), HSA, most health premiums) reduce the wages that federal and usually state income tax are calculated on. Some also reduce FICA.

Post-tax deduction

Post-tax deductions (Roth 401(k), union dues in most states, garnishments, after-tax insurance) come out after taxes are calculated.

YTD

Year-to-date totals show cumulative wages or deductions from January 1 of the current year through this paycheck.

OASDI

OASDI is the IRS/SSA name for Social Security tax. Employee rate 6.2% on wages up to the annual wage base.

FIT

Federal Income Tax withholding. Calculated using IRS Pub. 15-T methods based on your W-4.

SIT

State Income Tax withholding. Varies by state.

LIT

Local or municipal income tax withholding.

SDI

Mandatory worker contribution in CA, NJ, NY, RI, HI to fund short-term disability benefits.

PFML

State-run paid leave programs in MA, CT, WA, CO, OR, NJ, NY, DC, and others. Often a payroll deduction.

Filing status

Your filing status on the W-4 determines which withholding tables apply.

W-4

IRS Form W-4 tells your employer how much federal income tax to withhold. Updated significantly in 2020 to remove allowances.

W-2

Annual form summarizing wages and withholdings for the calendar year. Used to file your tax return.

Supplemental wages

Supplemental wages can be withheld at a flat 22% (or 37% over $1M), or aggregated with regular wages. See IRS Pub. 15.

Imputed income

Examples include group term life insurance over $50,000, personal use of a company car, and domestic partner health benefits.

Pay period

Common pay periods: weekly, biweekly (every 2 weeks), semimonthly (twice a month), monthly.

Pay date

The pay date is when wages are deposited or the check is issued — not always the last day of the pay period.