By Your pay stub arrives every two weeks. You glance at the deposit amount and file it away. But that piece of paper (or PDF) contains eleven data points that determine whether you’re being paid correctly — and errors are more common than you think.
Here is every line, decoded, with what to check and what to ignore.
The Anatomy of a Pay Stub
A typical pay stub has four sections:
- Header — your name, address, pay period dates, check number
- Earnings — gross pay broken down by regular, overtime, bonus
- Deductions — pre-tax, taxes, post-tax
- Year-to-date (YTD) — running totals for everything above
Let’s decode each.
Section 1: Earnings
Current Gross Pay
This is your total earnings for the pay period BEFORE any deductions. For salaried workers, it is salary ÷ pay periods. For hourly workers, it is hours × rate.
| Pay Type | Calculation | Example |
|---|---|---|
| Regular | 80 hrs × $30/hr | $2,400.00 |
| Overtime | 6 hrs × $45/hr (1.5x) | $270.00 |
| Gross | $2,670.00 |
Check: Does the hourly rate match your offer letter or most recent raise? Is overtime calculated at 1.5x your base rate (federal FLSA requirement)?
YTD Gross
The cumulative total since January 1. If you’re paid biweekly and it’s your 20th check of the year, YTD gross should be approximately 20 × your current-period gross (adjusted for raises or variable hours).
Check: Divide YTD gross by number of checks received. Does it roughly match your current gross?
Section 2: Pre-Tax Deductions
These reduce your taxable income before taxes are calculated. They appear ABOVE the tax lines on your stub.
| Deduction | Reduces Federal Tax? | Reduces FICA? | Typical Amount |
|---|---|---|---|
| 401(k) | ✓ | ✗ | 3–10% of gross |
| Health insurance (§125) | ✓ | ✓ | $100–$400/month |
| Dental/Vision (§125) | ✓ | ✓ | $20–$80/month |
| HSA | ✓ | ✓ | $50–$200/month |
| FSA | ✓ | ✓ | $50–$150/month |
| Life insurance (employer) | ✓ | ✓ | $0 (employer paid) |
| Commuter benefits | ✓ | ✓ | $100–$280/month |
The key distinction: 401(k) reduces income tax but NOT FICA. §125 benefits (health, dental, vision, HSA, FSA) reduce BOTH income tax and FICA.
This is why your stub may show a different “taxable gross” than your actual gross. That’s correct, not an error.
Check: If you have §125 deductions, verify your Social Security tax is calculated on the REDUCED amount, not your full gross.
Section 3: Taxes
Federal Income Tax (FIT)
Withheld based on your W-4 elections. This is an estimate — you settle the actual bill at tax filing.
Check: Compare current-period FIT to your expected annual federal tax ÷ pay periods. Use the take-home pay calculator to verify.
Social Security (FICA-SS)
6.2% of your FICA-taxable gross, up to $184,500 in 2026.
Check: Multiply your FICA gross by 0.062. The result should match your stub to within rounding (±$1).
Medicare (FICA-Med)
1.45% of all wages — no cap. An additional 0.9% applies to wages over $200,000 (single) or $250,000 (married filing jointly).
Check: Multiply FICA gross by 0.0145. Should match.
State Income Tax (SIT)
Varies by state: 0% in nine states, up to 13.3% in California.
Check: Verify the state code matches where you LIVE and WORK. Remote workers may be subject to different state rules.
Local Tax (where applicable)
Some cities/counties levy income tax:
- New York City: ~3.88% top rate
- Yonkers, NY: varies
- Ohio school districts: varies by district
- Maryland counties: ~2.25–3.2%
Section 4: Post-Tax Deductions
These do NOT reduce your taxable income. They appear after taxes.
| Deduction | Typical Amount |
|---|---|
| Roth 401(k) | varies |
| Life insurance (voluntary) | $10–$50/month |
| Disability insurance (post-tax) | 1–3% of income |
| Union dues | varies |
| Wage garnishments | court-ordered |
| Charitable donations (post-tax) | varies |
Note: Roth 401(k) is post-tax now but tax-free in retirement. This is a feature, not an error.
The Pay Stub You Should Memorize: A Worked Example
Single filer, Ohio, $75,000 salary, biweekly, 5% 401(k), $150/month health premium:
| Line | Amount | % of Gross |
|---|---|---|
| Gross Pay | $2,884.62 | 100% |
| 401(k) (5%) | −$144.23 | 5.0% |
| Health (§125) | −$69.23 | 2.4% |
| Federal Tax | −$248.04 | 8.6% |
| Social Security | −$174.55 | 6.1% |
| Medicare | −$40.82 | 1.4% |
| Ohio State Tax | −$43.37 | 1.5% |
| Net Pay | $2,164.37 | 75.0% |
This worker keeps about 75 cents of every dollar earned. The rest is split between taxes (17.6%), retirement (5%), and health insurance (2.4%). The one-cent difference between rounded line items and net pay comes from calculating with unrounded annual values before displaying each line.
Five Errors That Cost Workers Money
1. §125 Deductions Not Reducing FICA Gross
If your health premiums are deducted pre-tax but Social Security is calculated on your FULL gross, you’re overpaying FICA by 7.65% × your premium amount. On $150/month, that’s $137/year.
2. Wrong Filing Status
If your W-4 says “Single” but you’re married filing jointly, you’re likely over-withholding $2,000–$4,000 per year. This is a interest-free loan to the government.
3. Duplicate State Tax Withholding
Remote workers who live in one state and work (or previously worked) in another may see withholding for both states. Only one gets the money.
4. Auto-Enrollment Default 401(k) Too Low or Too High
Many employers auto-enroll at 3%. If you didn’t opt up, you may be missing the full employer match. Check if your employer matches 100% of the first 4% but you’re only contributing 3% — that’s free money left on the table.
5. Supplemental Rate Applied to Regular Wages
Bonuses and commissions may be withheld at a flat 22%. If your employer applies this rate to your REGULAR wages by mistake, you’re significantly over-withheld.
How to Get Errors Fixed
- Document it — photograph or screenshot the stub
- Calculate the correct amount — use our calculator
- Contact HR or payroll — bring the stub and your calculation
- Request a correction — payroll can issue a corrected check or adjust future withholding
- If unresolved — file a complaint with your state labor department
Most payroll errors are fixed within one to two pay cycles once reported.
Frequently asked questions
What does YTD mean on a pay stub?
YTD means Year To Date — cumulative totals from January 1 through the current pay period. Comparing YTD gross to YTD net shows your actual effective tax rate. If YTD net ÷ YTD gross = 0.73, you’re keeping 73 cents per dollar earned.
What is the difference between gross pay and net pay?
Gross pay is total earnings before deductions. Net pay is what reaches your bank after federal tax, FICA (7.65%), state tax, and benefit deductions. For most workers, net pay is 70–80% of gross depending on state and benefit elections.
Why do I have two gross pay numbers?
Most stubs show current-period gross and YTD gross separately. Some also show a "FICA gross" or "Medicare gross" that’s lower than your actual gross if you have §125 pre-tax deductions — because those deductions legitimately reduce FICA-taxable wages.
What should I check for errors on my pay stub?
Verify your filing status matches your W-4, confirm §125 deductions reduce your FICA gross, check state tax is for the correct state, ensure no unauthorized deductions exist, and confirm overtime is paid at 1.5x your base rate.
How long should I keep old pay stubs?
Keep pay stubs until you receive and verify your W-2 in January. Then retain W-2s for at least seven years for tax purposes. If your W-2 is ever incorrect, your final December stub is the evidence that resolves it.
Is my employer required to provide a pay stub?
Federal law doesn’t mandate pay stubs, but most states require itemized wage statements in print or electronic form. Nine states have no stub requirement: Alabama, Arkansas, Florida, Louisiana, Mississippi, Ohio (still must provide access), South Dakota, Tennessee, and Wyoming.
How do I calculate my take-home pay before accepting a job?
Use the take-home pay calculator with your offered salary, filing status, and state. It applies 2026 federal brackets, FICA, and state tax rules to show your actual per-check and annual net pay. For hourly offers, the hourly to salary calculator converts your rate to an annual equivalent first.
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