The five parts of a pay stub
Layouts differ by payroll provider, but almost every stub walks through the same five blocks in the same order. Each block has a current column for this period and a year-to-date column.
| Block | What is in it |
|---|---|
| Gross pay | Salary for the period, or hours times rate; overtime, bonuses, commissions, paid time off |
| Pre-tax deductions | Amounts taken out before taxes are figured: 401(k) deferrals, medical premiums under a cafeteria plan, HSA contributions |
| Taxes | Federal income tax, Social Security, Medicare, state and sometimes local income tax, state programs such as SDI |
| Post-tax deductions | Taken out after taxes: Roth 401(k), some life insurance, union dues, garnishments, loan repayments |
| Net pay | What was paid out, usually with the bank account or check number |
Pre-tax deductions matter because they lower the wages a tax is computed on, but not every deduction lowers every tax. IRS Publication 15 lists 401(k) elective deferrals as generally exempt from income tax withholding but taxable for Social Security and Medicare. Benefits you elect under a Section 125 cafeteria plan, which is how most employer medical premiums are deducted, may be excluded from Social Security and Medicare wages as well. That is why a stub often shows two or three different wage figures for the same period.
The abbreviations
| Code | Meaning | Rate or rule |
|---|---|---|
| FIT, FWT, FED | Federal income tax withheld | From your Form W-4 and the Publication 15-T tables; not a flat rate |
| FICA | Federal Insurance Contributions Act: Social Security plus Medicare | 7.65% of covered wages in total |
| OASDI, SS, SOC SEC | Social Security (old-age, survivors and disability insurance) | 6.2% up to $184,500 of wages in 2026 |
| MED, HI | Medicare | 1.45%, no wage limit; plus 0.9% on wages over $200,000 in a year |
| SIT, SWT, ST | State income tax | Depends on the state; some have none |
| SDI, CASDI | State disability insurance, in states that have it | California: 1.3% of all wages in 2026, 1.4% in 2027 |
| 401K | Pre-tax retirement deferral | Excluded from taxable income, still subject to Social Security and Medicare |
| ROTH | After-tax retirement deferral | Taxed now, so it sits below the tax lines |
| HSA | Health savings account contribution | Tax-exempt account for medical costs; payroll contributions through a cafeteria plan are excluded from income |
| YTD | Year to date | Running total since January 1 |
Your employer pays its own 6.2% and 1.45% on top of what is withheld from you. Those employer amounts sometimes appear on the stub in a separate "employer contributions" box. They are not deducted from your pay.
Year-to-date columns
The YTD column adds up every pay period since the start of the calendar year, including this one. It answers three questions the current column cannot: how much you have earned so far, how far you are from a limit such as the Social Security wage base or your 401(k) contribution limit, and whether the year's totals will match your W-2. A quick check is that the YTD figure on this stub minus the YTD figure on the previous stub should equal this period's current amount. If it does not, a correction or a retroactive payment went through, and the stub usually shows it as a separate line.
A worked example
An employee earns $65,000 a year, paid every two weeks (26 periods), with a $125 401(k) deferral and a $120 medical premium under a cafeteria plan. This is pay period 10. Federal and state income tax are assumed figures, because they depend on the W-4 and the state; everything else is computed from the IRS rates.
| Line | Current | Year to date |
|---|---|---|
| Gross pay | $2,500.00 | $25,000.00 |
| 401(k), pre-tax | −$125.00 | −$1,250.00 |
| Medical premium, pre-tax | −$120.00 | −$1,200.00 |
| Federal income tax (assumed) | −$190.00 | −$1,900.00 |
| Social Security (OASDI) | −$147.56 | −$1,475.60 |
| Medicare | −$34.51 | −$345.10 |
| State income tax (assumed) | −$80.00 | −$800.00 |
| Life insurance, post-tax | −$20.00 | −$200.00 |
| Net pay | $1,782.93 | $17,829.30 |
How to check it line by line:
- Gross: $65,000 ÷ 26 = $2,500.00. For hourly pay, multiply the hours on your timesheet by your rate; the overtime pay calculator adds time and a half for hours past 40.
- Federal taxable wages: $2,500.00 minus the 401(k) and the premium = $2,255.00. Federal income tax is figured on this amount, not on gross.
- Social Security and Medicare wages: $2,500.00 minus the premium only = $2,380.00, because the 401(k) deferral stays in.
- Social Security: $2,380.00 × 6.2% = $147.56. Medicare: $2,380.00 × 1.45% = $34.51.
- Net: gross minus every deduction and tax = $1,782.93.
The paycheck calculator runs the same steps for your own salary, pay frequency and deductions, and the salary converter turns a yearly figure into the per-period gross you should see on line one.
When the Social Security line stops
Social Security tax applies only to the first $184,500 of wages in 2026. Medicare has no limit, and an Additional Medicare Tax of 0.9% is withheld from the pay period in which your wages for the year pass $200,000, regardless of your filing status. Someone paid $210,000 a year in 26 periods ($8,076.92 each) sees both changes late in the year:
| Period | YTD wages | SS wages taxed | Social Security | Medicare | Additional Medicare |
|---|---|---|---|---|---|
| 22 | $177,692.31 | $8,076.92 | $500.77 | $117.12 | $0.00 |
| 23 | $185,769.23 | $6,807.69 | $422.08 | $117.12 | $0.00 |
| 24 | $193,846.15 | $0.00 | $0.00 | $117.12 | $0.00 |
| 25 | $201,923.08 | $0.00 | $0.00 | $117.12 | $17.31 |
| 26 | $210,000.00 | $0.00 | $0.00 | $117.12 | $72.69 |
In period 23 only the part of the paycheck that fits under the wage base is taxed for Social Security; from period 24 that line is zero. From period 25 the extra 0.9% applies to the part of each check above the threshold. A bigger take-home pay in November is not an error in that case.
When something looks wrong
- Check the inputs first. Hours against your own timesheet, the hourly rate or salary against your offer letter, overtime hours against the 40-hour week. Most errors are hours, not taxes.
- Check the W-4 elections. Federal income tax follows Form W-4 and the Publication 15-T tables: the filing status, the Step 2 checkbox for a second job or working spouse, the Step 3 credits, the Step 4 adjustments and any extra per-period amount. If withholding jumped, ask whether a new W-4 was entered.
- Redo the flat-rate taxes. Social Security and Medicare are the easy ones to verify: 6.2% and 1.45% of the Social Security and Medicare wage figure. If your stub does not show that figure, subtract the cafeteria plan deductions from gross.
- Watch the YTD columns. A deduction that stops early or runs past its limit shows up there before anywhere else.
- Ask payroll in writing and keep the stub. Federal law does not require your employer to give you a stub at all, but it does require the employer to keep records of additions to and deductions from wages, total wages paid each period and the date of payment for at least three years, so the figures can be traced. Many states go further: California requires an itemized statement each payday with gross wages, total hours, all deductions, net wages, the pay period dates, your name, the employer's legal name and address and every hourly rate with the hours worked at each.
- Reconcile with the W-2 in January. The last stub of the year should match the W-2 boxes; how to read your W-2 shows which box takes which YTD figure.
This page explains the lines on a pay statement. It is not tax advice; the right withholding for you depends on your whole return.
Frequently asked questions
What is the difference between gross pay and net pay?
Gross pay is everything you earned in the period before anything is taken out: salary or hours times rate, plus overtime, bonuses and commissions. Net pay is what lands in your account after pre-tax deductions, taxes and post-tax deductions. The stub lists every step between the two.
What do FICA and OASDI mean on a pay stub?
FICA stands for the Federal Insurance Contributions Act, the law behind Social Security and Medicare taxes. OASDI is the Social Security part, short for old-age, survivors and disability insurance, withheld at 6.2 percent of wages up to a yearly wage base. Medicare is the other part at 1.45 percent with no wage limit. Some stubs show one FICA line, others split it.
Why does my federal income tax change from one paycheck to the next?
Federal income tax withholding is computed from your Form W-4 and the wages of that specific period, using the tables in IRS Publication 15-T. A period with overtime or a bonus has more taxable wages, so more is withheld. A change to your W-4, or a new pre-tax deduction, also moves the number.
Why did Social Security tax stop being withheld late in the year?
Social Security tax applies only up to the wage base, which the IRS puts at $184,500 for earnings in 2026. Once your year-to-date Social Security wages reach that amount, the OASDI line drops to zero until January. Medicare keeps going, and above $200,000 in a calendar year an extra 0.9 percent Additional Medicare Tax is withheld.
Is my employer required to give me a pay stub?
Not under federal law. The Department of Labor says the FLSA requires employers to keep accurate records of hours worked and wages paid, but does not require them to provide pay stubs. Many states do require an itemized statement; California, for example, lists nine items that must be on it. Check the rules where you work.
What should I compare my pay stub with at the end of the year?
Your Form W-2. The year-to-date columns on the final stub of the year should line up with the W-2 boxes for wages, federal income tax withheld, Social Security wages and tax, and Medicare wages and tax. If they do not, ask payroll before you file.
Sources
- IRS Topic No. 751: Social Security and Medicare withholding rates (6.2% and 1.45% each for employee and employer, the Federal Insurance Contributions Act, the 2026 wage base of $184,500, no wage base for Medicare, 0.9% Additional Medicare Tax on wages over $200,000 withheld from the pay period in which wages pass the threshold, no employer match)
- IRS Publication 15-T: Federal Income Tax Withholding Methods (the percentage method and wage bracket method tables, how filing status, the Step 2 checkbox, Step 3 credits, Step 4 adjustments and extra withholding from Form W-4 change the amount)
- IRS Publication 15, section 15 (401(k) elective deferrals are generally exempt from income tax withholding but taxable for Social Security and Medicare; cafeteria plan benefits under section 125 may be excluded from Social Security and Medicare wages)
- IRS: 401(k) plans (elective salary deferrals are excluded from the employee's taxable income, except designated Roth deferrals)
- IRS Publication 969: Health Savings Accounts (an HSA is a tax-exempt account for medical expenses; contributions through a cafeteria plan may be excluded from gross income)
- U.S. Department of Labor: FLSA frequently asked questions (the FLSA requires accurate records of hours worked and wages paid but does not require an employer to provide employees pay stubs)
- U.S. Department of Labor Fact Sheet #21: Recordkeeping under the FLSA (the records employers must keep, including additions to or deductions from wages, total wages paid each pay period, date of payment and the pay period covered; payroll records kept at least three years)
- California Department of Industrial Relations: Paydays, pay periods and final wages FAQ (the nine items Labor Code section 226 requires on an itemized wage statement, given semimonthly or each payday)
- California EDD: Rates and withholding (SDI withholding rate 1.3 percent for 2026 and 1.4 percent for 2027; no taxable wage limit since January 1, 2024)
General information based on the sources above, not tax, legal or financial advice.