A pay stub is the record your employer provides each pay period showing how your gross pay was calculated and what was withheld. Federal law does not require employers to provide paper stubs, but most states do under state wage payment laws. Even if your stub is electronic, knowing how to read it helps you catch errors and understand your taxes.
The Main Sections
Most stubs share the same structure regardless of the payroll software used:
1. Employee and Pay Period Information
- Your name, address, and last four digits of your SSN
- Employer name and EIN (Employer Identification Number)
- Pay period start and end dates
- Pay date
2. Earnings
| Earning type | What it means |
|---|---|
| Regular | Base pay for normal hours |
| Overtime | Hours beyond 40 in a workweek, paid at 1.5x regular rate per 29 U.S.C. §207 |
| Holiday / PTO / Sick | Paid time off used during the period |
| Bonus | Supplemental wages (often shown separately because they may use a different withholding rate) |
| Gross pay | Sum of all earnings above |
3. Pre-Tax Deductions
These are subtracted from gross pay before taxes are computed. They reduce your federal income tax withholding and, in some cases, FICA:
| Deduction | Reduces income tax? | Reduces FICA? |
|---|---|---|
| Traditional 401(k) / 403(b) | Yes | No |
| Health insurance premium (Section 125) | Yes | Yes |
| Dental / Vision (Section 125) | Yes | Yes |
| Health FSA (Section 125) | Yes | Yes |
| HSA (payroll) | Yes | Yes |
4. Taxes Withheld
| Line | What it is | 2026 Rate |
|---|---|---|
| Federal income tax | Estimated annual income tax ÷ pay periods | Varies (your bracket) |
| Social Security | 6.2% of wages up to $184,500 | 6.2% |
| Medicare | 1.45% on all wages | 1.45% |
| State income tax | Your state’s withholding | Varies by state |
| State disability / paid leave | Employee-share payroll program | Varies by state |
Source: SSA 2026 COLA Fact Sheet; Rev. Proc. 2025-32.
The federal income tax line is an estimate based on your W-4 and IRS Publication 15-T withholding tables. It is not your actual tax owed — that is calculated when you file.
5. Post-Tax Deductions
These come out after all taxes:
- Roth 401(k) contributions
- Life insurance premiums above the Section 125 plan
- Wage garnishments (child support, court orders)
- Union dues
6. Net Pay
Net pay = Gross pay − pre-tax deductions − taxes − post-tax deductions. This is what is deposited into your account or paid by check.
7. Year-to-Date (YTD) Column
Most stubs show both current-period and YTD totals for every line. At year end, your W-2:
- Box 1 (federal wages) = YTD gross − YTD pre-tax deductions
- Box 3 (SS wages) = YTD gross − YTD Section 125 deductions (401k does not reduce Box 3)
- Box 4 (SS withheld) = YTD Social Security tax
- Box 5 (Medicare wages) = same as Box 3
How to Check Your Stub for Errors
- Verify gross pay. Multiply your hourly rate by hours worked (or confirm salary ÷ pay periods).
- Check Social Security. Should be exactly 6.2% of Box 3 wages for the period, unless the $184,500 annual cap has been reached.
- Check Medicare. Should be exactly 1.45% of gross (minus Section 125 only), every period, no cap.
- Verify pre-tax deduction amounts match what you enrolled in.
- Confirm YTD Social Security wages stop accumulating after $184,500.
If Social Security stops early (before $184,500 YTD) or continues after, that is an error worth investigating. The Social Security Administration advises checking your earnings record at ssa.gov/myaccount annually.
For a model of what your stub should look like based on your actual pay and deductions, run the paycheck calculator.