How to Read Your Paystub: Every Line Explained
Your paystub is the most important financial document you'll see this year. Understanding it takes 10 minutes and can catch payroll errors costing you hundreds.
Top section: who, when, and gross pay
- Pay period — usually 2 weeks (biweekly) or 15 days (semimonthly)
- Gross pay — wages before any deductions; hourly × hours, or annual salary ÷ pay periods
- YTD — running total since January 1
Pre-tax deductions
Subtracted from gross BEFORE income tax is calculated, lowering taxable wages:
- Traditional 401(k) contributions
- Employer health, dental, vision premiums
- HSA / FSA contributions
- Commuter / parking benefits
FICA — Social Security & Medicare
- Social Security: 6.2% on first $168,600 (2024)
- Medicare: 1.45% on all wages
- Additional Medicare: 0.9% on wages over $200K (single) — employer doesn't match this
Employer pays a matching 7.65% you never see.
Federal income tax withholding
Based on your W-4 entries, the IRS withholding tables, and the wage in this period. Not a flat percentage — it's tied to your projected annual tax bill.
State and local withholding
Mirrors federal: based on your state W-4 equivalent. Cities like NYC and Philadelphia have additional local income tax. Reciprocity agreements may waive withholding for cross-border commuters.
Post-tax deductions
- Roth 401(k) contributions
- Garnishments and child support
- Union dues
- Charitable payroll giving
Net pay (the only number most people read)
Net = Gross − pre-tax − all taxes − post-tax. Verify it occasionally against a paycheck calculator. Errors most often appear after raises, benefits enrollment, or W-4 changes.
Run your own numbers
Use our free, in-browser calculators — no signup, no data collection.
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