How to Read a Pay Stub: Every Box Explained in Plain English

How to read a pay stub? Start with three numbers: your gross pay, your total deductions, and your net pay. Everything else on the stub explains how you get from the first number to the last. This guide walks through every box on a stub, line by line, so you can spot errors and understand exactly where your money goes.

Most people glance at the net pay and throw the stub away, and that is a mistake. Your pay stub is the only document that shows exactly what your employer paid you, what was withheld, and what you actually kept. It is also your proof of income for a loan, a lease, or a government benefit, and it is the fastest way to catch a payroll error before it costs you real money. So what does every line actually mean? Let us go through it, box by box.

What Is a Pay Stub?

A pay stub, also called a pay slip or an earnings statement, is the itemized record that comes with each paycheck. It shows your gross pay for the period, every tax and deduction taken out, and the net pay that lands in your bank account. It also shows year to date totals, so you can see what you have earned and paid in taxes so far this year. Most employers deliver pay stubs electronically now, through a payroll portal or by email, but some still hand out paper copies with a paper check.

Your pay stub matters for more than curiosity. Lenders ask for recent pay stubs when you apply for a mortgage or a car loan. Landlords ask for them when you rent an apartment. And at tax time, your final pay stub of the year should match the numbers on your W-2, so it is your first check that your employer reported your income correctly. If you keep your stubs, even as PDFs in a folder, you have a paper trail that protects you.

How to Read a Pay Stub, Box by Box

Every pay stub looks a little different, because every payroll system formats them its own way, but the same boxes appear on nearly all of them. Here is what each one means.

Box on your stub	What it means
Employee information	Your name, employee ID, and sometimes your address
Employer information	Company name and address, sometimes a phone number
Pay period	The start and end dates this check covers
Pay date	The date the money is paid to you
Hours and rate	Hours worked and your hourly rate, or your salary for the period
Gross pay	Your total pay before any deductions
Federal income tax	Federal withholding based on your W-4
Social Security	6.2 percent of pay, up to the annual wage base
Medicare	1.45 percent of all pay, with no cap
State and local tax	State and city withholding, if your state has an income tax
Before tax deductions	401(k), health insurance, HSA, FSA
After tax deductions	Roth 401(k), garnishments, union dues
Employer contributions	What your employer pays, such as a 401(k) match
Year to date totals	Gross pay, taxes, and deductions so far this year
Net pay	What you actually take home

Employee and employer information sit at the top. Check that your name is spelled correctly and your employee ID matches, because an error here can cause problems with your tax forms later. The pay period is the date range this check covers, and the pay date is when the money reaches you. These two dates are different, and confusing them is a common mistake. If you are paid biweekly, the pay period is two weeks, and the pay date is usually a few days after the period ends.

Hours and rate show how your gross pay was built. If you are hourly, the stub lists your regular hours, your overtime hours, and your rate for each. If you are salaried, it shows your salary for the period, usually your annual salary divided by the number of pay periods. Overtime shows on its own line at time and a half, so you can check it against your own hours.

Gross pay is your total pay before anything is taken out. Every deduction below it subtracts from this number. Federal income tax withholding comes next, and it is based on the W-4 form you filled out when you were hired. The amount depends on your income, your filing status, and any extra withholding you asked for. Social Security tax is 6.2 percent of your pay, but only up to the annual wage base, which is $184,500 for 2026. Once your year to date pay passes that amount, the Social Security deduction stops for the rest of the year.

Medicare tax is 1.45 percent of all your pay, with no cap, and high earners pay an extra 0.9 percent on wages over $200,000. State and local tax only appears if your state or city has an income tax. Nine states have no state income tax at all, so workers there will not see that line.

Before tax deductions lower your taxable pay, which means they also lower the tax you owe. The most common ones are 401(k) contributions, health insurance premiums, and HSA or FSA contributions. After tax deductions come out of pay that has already been taxed, so they do not lower your tax bill. Roth 401(k) contributions, union dues, and wage garnishments fall in this group. Employer contributions are not deductions from your pay. They are money your employer adds on top, like a 401(k) match or the employer share of your health insurance, and they are shown for your information only.

Net pay is the last number, and it is the one that matters most. It is your gross pay minus every deduction on the stub, and it is the amount that hits your bank account. Year to date totals run down the side or across the bottom of most stubs, and they show your cumulative gross pay, taxes, and deductions since January 1. These totals are useful for estimating your annual tax bill and for checking that your final stub of the year matches your W-2.

A Real Pay Stub, Worked Out Line by Line

Meet Priya, a registered nurse in Ohio earning $78,000 a year, paid biweekly. Her gross pay per check is $78,000 divided by 26 paychecks, which is $3,000.00. Here is what her stub shows for one pay period.

Line	Amount this period	Year to date after 10 paychecks
Gross pay	$3,000.00	$30,000.00
Federal income tax	$320.38	$3,203.80
Social Security	$186.00	$1,860.00
Medicare	$43.50	$435.00
Ohio state tax	$55.00	$550.00
401(k), 5 percent	$150.00	$1,500.00
Health insurance	$145.00	$1,450.00
Dental insurance	$12.00	$120.00
Total deductions	$911.88	$9,118.80
Net pay	$2,088.12	$20,881.20

Add the deductions yourself and the math checks out. Federal withholding of $320.38 plus Social Security of $186.00 plus Medicare of $43.50 plus Ohio tax of $55.00 plus the 401(k) of $150.00 plus health insurance of $145.00 plus dental of $12.00 comes to $911.88. Subtract that from gross pay of $3,000.00 and you get net pay of $2,088.12, exactly what Priya takes home.

Her Social Security line is 6.2 percent of $3,000, and her Medicare line is 1.45 percent of $3,000. Her federal withholding of $320.38 per check adds up to about $8,330 a year, which matches her expected 2026 tax on $61,900 of taxable income after the $16,100 standard deduction. And because she earns $78,000, she will never hit the $184,500 Social Security wage base, so her Social Security deduction stays the same all year. That is how to read a pay stub in practice: check that every line adds up, and ask payroll if any number looks wrong.

If you want to run your own numbers, try our free paycheck calculator and compare the result with your stub. A mismatch of a few dollars is normal, because withholding tables round, but a large gap means something needs a second look.

Which Deductions Lower Your Taxable Pay?

Before tax deductions are the most valuable lines on your stub, because they shrink the income your taxes are calculated on. A 401(k) contribution is the biggest one for most people. If you put $150.00 per check into a 401(k), as Priya does, your federal taxable pay drops by $150.00 per check, or $3,900.00 a year, and you pay less federal tax. Health insurance premiums work the same way, and so do HSA and FSA contributions. The money still leaves your paycheck, but the taxman never sees it.

After tax deductions do not lower your taxable pay. A Roth 401(k) contribution is the most common example. You pay tax on the money now, and the contribution comes out of your pay after taxes. Wage garnishments for child support or a court order are also after tax, as are union dues and most supplemental life insurance premiums. Both kinds of deductions reduce your net pay, but only before tax deductions reduce your tax bill, so it pays to know which group each of your deductions belongs to. If a deduction is listed in the wrong group, your withholding will be wrong too, so check the labels on your stub.

Is Your Employer Required to Give You a Pay Stub?

Federal law does not require your employer to give you a pay stub. Under the Fair Labor Standards Act, employers must keep detailed payroll records, but the law does not say they have to hand you a copy. State law fills the gap. About 41 states require employers to provide some form of wage statement each pay period, either on paper or electronically. Nine states have no pay stub requirement at all: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, and Tennessee. If you work in one of those states, your employer may still give you a stub voluntarily, and most large employers do, but the law does not force them to.

The rules also differ on format. Some states require a printed stub, some allow electronic delivery through a portal or email, and a few let employees request a paper copy at any time. If your employer does not give you a stub and your state requires one, ask payroll first, then contact your state labor department if the problem continues. Either way, keep whatever records you do get, because your pay stub is your best evidence if a wage dispute ever comes up.

How Do You Spot an Error on Your Pay Stub?

Check your stub every pay period, and run through these five checks. First, compare your hours with your own records. If you worked 44 hours and the stub shows 40, you are missing overtime pay. Second, check your rate. A raise that has not been applied yet shows up here first. Third, look at your year to date totals. Your gross pay year to date should equal your pay per period times the number of paychecks so far, and it should match your W-2 at the end of the year.

Fourth, check your tax withholding. If your federal withholding jumped or dropped for no reason, your W-4 may have been changed by mistake. Fifth, watch for a missing deduction. If your health insurance premium disappears one month, your coverage may have lapsed without you knowing.

If you find an error, tell payroll in writing and keep a copy of your message. Most errors are simple system mistakes and get fixed on the next check, with any underpayment added back. If the error is not fixed, escalate to HR, and keep your pay stubs as evidence. A single wrong check is a nuisance, but the same error repeated for a year can cost hundreds of dollars, so catching it early matters.

Common Mistakes to Avoid

These six mistakes cause most of the confusion around pay stubs.

1. Confusing gross pay with net pay. Your salary is your gross pay, not the amount that lands in your account. Budget on your net pay, not your salary.
2. Ignoring the year to date column. The year to date totals are your running record for the year, and they are what your W-2 is built from. Check them every month.
3. Assuming a bigger check means a raise. A bigger check can mean fewer deductions, a different pay period, or a one time adjustment, not a raise. Check the gross pay line first.
4. Never checking overtime. Overtime should appear on its own line at time and a half. If it is missing or folded into regular hours, you are being underpaid.
5. Not updating your W-4 after a life change. A marriage, a new child, or a second job changes your withholding, and an old W-4 will withhold the wrong amount all year.
6. Throwing pay stubs away. Keep them until you have filed your tax return for the year and matched them against your W-2. A missing stub is a missing piece of evidence if a dispute comes up later.

Frequently Asked Questions

How to read a pay stub for the first time?

Start with gross pay at the top, then read down through the taxes and deductions, and finish at net pay at the bottom. Check that gross pay minus total deductions equals net pay, then look at the year to date totals.

What is gross pay on a pay stub?

Gross pay is your total pay before any taxes or deductions. For a salaried worker it is your annual salary divided by the number of pay periods. For an hourly worker it is your hours times your rate, plus any overtime.

What is net pay on a pay stub?

Net pay, also called take home pay, is what you actually receive after all taxes and deductions. It is gross pay minus federal tax, Social Security, Medicare, state tax, and all other deductions.

Why is my net pay lower than my gross pay?

Federal income tax, Social Security, Medicare, state tax, and deductions like a 401(k) and health insurance all come out before you are paid. On a typical stub these add up to 25 to 35 percent of gross pay.

What does YTD mean on a pay stub?

YTD means year to date. It shows your cumulative gross pay, taxes, and deductions since January 1. Your final YTD totals for the year should match your W-2.

How much Social Security tax is taken from my paycheck?

Social Security tax is 6.2 percent of your pay, up to the annual wage base of $184,500 for 2026. The maximum is $11,439 a year. Once your year to date pay passes the wage base, the deduction stops.

Does my employer have to give me a pay stub?

It depends on your state. About 41 states require employers to provide a wage statement. Nine states, including Florida, Georgia, and Ohio, have no requirement, though most employers still provide one voluntarily.

How do I check if my paycheck is correct?

Multiply your hours by your rate and compare it with gross pay, check that Social Security is 6.2 percent and Medicare is 1.45 percent, and confirm that your year to date totals match the number of paychecks so far. Then compare the result with a paycheck calculator.

What is the difference between before tax and after tax deductions?

Before tax deductions, like a traditional 401(k) and health insurance, lower your taxable pay and your tax bill. After tax deductions, like a Roth 401(k) and union dues, come out of pay that has already been taxed and do not lower your tax bill.

Should I keep my pay stubs?

Yes. Keep them until you have filed your tax return for the year and matched them against your W-2. They are proof of income for loans and leases, and evidence if a wage dispute comes up.

Once you can read your stub, read our gross pay vs net pay guide to see how much of each check you actually keep, and our take home pay percentage guide to work out your keep rate in one number. You can also browse the Paycheck Calculators hub for every pay tool in one place. That is how to read a pay stub, and the habit that pays off is checking yours every pay period, not just when something looks wrong.

Disclaimer: This guide is for education only and is not financial, tax, or legal advice. Pay rules and tax rates vary by state and by employer, so check your state labor department or talk to a professional about your situation.

Sources: U.S. Department of Labor, Wage and Hour Division, Fair Labor Standards Act recordkeeping rules. Social Security Administration, contribution and benefit base for 2026. Internal Revenue Service, Topic 751, Social Security and Medicare withholding rates.

By EasyFinanceCalc Team | Published October 26, 2026 | Last updated October 26, 2026