How to Read Your Pay Stub

Every pay stub tells the same story — gross pay in, taxes and deductions out, net pay left. Here is what each line means, with a sample stub.

Gross pay

Total earnings for this pay period, before anything is taken out. For salary workers: annual salary divided by number of pay periods.

Federal withholding

Your employer's per-paycheck estimate of federal income tax, based on your W-4. Not your final tax bill — that is settled when you file.

State withholding

State income tax held per paycheck. Nine states withhold $0 for state income tax.

FICA — Social Security

6.2% of wages up to the annual wage base ($184,500 in 2026). Your employer matches it.

FICA — Medicare

1.45% of all wages, plus 0.9% extra over $200,000. Employer matches the 1.45%.

Pre-tax deductions

401(k), HSA, and health premiums taken before tax is calculated — they shrink every tax line above.

Net pay

What actually hits your bank account: gross minus all taxes and deductions.

YTD (year-to-date)

Running totals since January 1 for each line — useful for spotting withholding mistakes early.

FAQs

What is the difference between gross and net pay on a stub?

Gross pay is total earnings before anything is taken out; net pay is what is deposited after taxes and deductions.

What does YTD mean on a pay stub?

Year-to-date: totals from January 1 through this pay period for earnings, taxes withheld, and deductions.

Why is federal withholding different on my bonus check?

Bonuses are supplemental wages, usually withheld at a flat 22% federal rate instead of your normal W-4 rate.

Estimate only: results use 2026 federal and state tax figures with simplified assumptions (single filer, standard deduction). Actual withholding varies by W-4, pre-tax deductions, and local taxes. Not tax advice.

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