How to Read a Pay Stub: A Field-by-Field Guide
Every line on a pay stub has a meaning. Here's what gross pay, net pay, FICA, federal and state withholding, YTD, and deduction codes all mean.
Pay stubs vary by employer and payroll system, but they all contain the same core information. Once you know the categories, any stub becomes readable.
Earnings section
Look for 'Regular' (straight-time hours × base rate), 'OT' or 'Overtime' (hours over 40 × 1.5× rate), and any supplemental pay like bonuses, commissions, or shift differentials. The sum of these lines is your gross pay for the period. Year-to-date (YTD) next to each line shows the running total since January 1.
Tax withholding lines
'Federal Income Tax' or 'FIT' is withheld based on your W-4 elections and the IRS tables. 'State Income Tax' or 'SIT' applies if your state has income tax. 'OASDI' or 'Social Security' is 6.2% of gross wages up to the taxable wage base (which re-sets each January). 'Med' or 'Medicare' is 1.45%. These four together make up most of the gap between gross and net.
Deduction codes
Pre-tax deductions (health insurance, dental, 401k, FSA) reduce your taxable gross before income tax is calculated, which is why they appear above the tax lines. Post-tax deductions (Roth 401k, life insurance, wage garnishments) are taken from after-tax income. A code you don't recognize is usually explained in your employee handbook or HR portal.
Checking for errors
Compare your regular hours to what you actually worked. Check that overtime hours match. Verify the correct state appears on the stub, especially if you worked remotely from a different state than usual — that can trigger an incorrect state withholding. If something looks wrong, ask payroll within the same pay period if possible.