Every line, decoded
Total earnings for the pay period before any deductions: regular hours, overtime, bonuses, commission and tips.
What actually reaches your bank account after taxes and deductions. This is the amount of your direct deposit.
Federal income tax withheld based on your Form W-4 filing status, dependents and any extra withholding you requested.
Old-Age, Survivors and Disability Insurance — 6.2% of wages up to the annual wage base. Your employer pays a matching 6.2%.
1.45% of all wages with no cap, plus an extra 0.9% Additional Medicare Tax on wages above $200,000 for single filers.
Social Security and Medicare combined — 7.65% of wages for most employees. Some stubs show one FICA line instead of two.
State withholding, where your state levies income tax. Nine states have none, so this line may be absent.
State disability insurance, paid family leave, or state unemployment contributions — required in states such as California, New York, New Jersey and Washington.
City, county or school-district tax, common in Ohio, Pennsylvania, New York City and Maryland.
Health, dental and vision premiums, HSA/FSA contributions, traditional 401(k) and commuter benefits — subtracted before income tax is calculated.
Roth 401(k), union dues, garnishments, life insurance above the tax-free limit and charitable payroll giving — taken after tax.
Amounts your employer pays on top of your wages (401(k) match, health premium share). Informational only; they do not reduce net pay.
Cumulative totals from January 1 through this pay date. Landlords, lenders and the IRS use YTD gross to verify annual income.
Gross pay minus pre-tax deductions. This — not gross pay — is the figure your income tax withholding is calculated on.
Accrued and used vacation or sick hours. Some states require sick-leave balances to appear on the stub.
Worked example
A bi-weekly employee earning $2,500 gross with a $150 pre-tax health premium and a 5% traditional 401(k) contribution:
Note that Social Security and Medicare are calculated on $2,350 — gross minus only the health premium. Traditional 401(k) contributions reduce income tax but not FICA, which is why the two tax bases differ.
Five checks that catch payroll errors
- Hours × rate should equal regular earnings exactly; overtime hours over 40 in a week should be paid at 1.5×.
- Social Security should be precisely 6.2% and Medicare 1.45% of FICA-taxable wages. An odd percentage signals a setup error.
- Each YTD figure should equal the previous stub's YTD plus this period's amount.
- Deduction amounts should match your benefit elections — a doubled premium after open enrollment is a common mistake.
- Your state and local tax lines should match where you actually work and live, especially after a move or a remote transition.
Raise discrepancies with payroll in writing and keep the stub. Under most state wage laws, employers must correct underpayments promptly, and some states impose penalties for delays.
Frequently asked questions
Why is my net pay so much lower than my gross pay?+
For a typical US employee, 7.65% goes to Social Security and Medicare, federal income tax takes 10–22% of taxable wages, and state tax adds 0–13% depending on where you live. Health premiums, retirement contributions and other deductions come out on top of that, so take-home pay is commonly 65–80% of gross.
What does OASDI mean on my paycheck?+
OASDI stands for Old-Age, Survivors and Disability Insurance — the formal name for Social Security tax. It is withheld at 6.2% of wages up to the annual Social Security wage base, after which the deduction stops for the rest of the year. Your employer pays an equal 6.2% that does not appear as a deduction.
What does YTD mean on a pay stub?+
Year-to-date: the running total of a value from January 1 through the current pay date. Every major line usually has a YTD column — gross pay, each tax, each deduction and net pay. YTD gross at year end should match Box 1 (plus pre-tax items) on your W-2.
Why does my federal tax withholding change between paychecks?+
Withholding is calculated per paycheck by annualizing that check's taxable wages. A bonus, overtime or commission makes the check look like a higher annual income, so a larger percentage is withheld. It evens out when you file your return.
How do I check my pay stub for errors?+
Verify hours × rate equals regular gross, overtime is paid at 1.5× for hours over 40 in a week, Social Security is exactly 6.2% and Medicare exactly 1.45% of taxable wages, deductions match your benefit elections, and this check's YTD equals last check's YTD plus the current amounts. Any mismatch is worth raising with payroll in writing.
What is the difference between taxable wages and gross pay?+
Gross pay is everything you earned. Taxable wages are gross pay minus pre-tax deductions such as health premiums, HSA and traditional 401(k) contributions. Income tax withholding is computed on taxable wages, which is why your tax line is lower than a simple percentage of gross.
Should my pay stub match my W-2?+
Your final stub of the year should reconcile with your W-2, though the numbers are not identical. W-2 Box 1 equals YTD gross minus pre-tax deductions such as 401(k) and health premiums. Box 3 (Social Security wages) is capped at the wage base, and Box 5 (Medicare wages) has no cap.
Is my employer required to give me a pay stub?+
There is no federal pay-stub mandate, but most states require employers to give employees a written or electronic wage statement each pay period, and several require specific items on it. Requirements differ by state — see our state pay stub requirement guides.
What does a negative or reversed line mean?+
A negative amount is an adjustment: a refund of an over-withheld deduction, a reversed benefit premium, or a correction to a prior period. Payroll should be able to name the pay period being corrected.
What is imputed income?+
The taxable value of a non-cash benefit — group life insurance above $50,000, personal use of a company car, domestic-partner health coverage or gym memberships. It is added to taxable wages so tax can be withheld, then subtracted again so it does not increase your net pay.