How to Read a Pay Stub: Every Field Explained

What Is a Pay Stub?

A pay stub (also called a paycheck stub, earnings statement, or remittance advice) is a document provided by your employer with each paycheck that breaks down your earnings and deductions for that pay period. It also shows your year-to-date totals.

Pay stubs are important for verifying your income, understanding your deductions, filing taxes, applying for loans, and catching payroll errors.

Pay Stub Sections: Top to Bottom

1. Employee and Employer Information

Employee name and address — Your legal name as on file with payroll
Employee ID / Social Security last 4 — Your identifier in the payroll system
Employer name and EIN — Your company and its Employer Identification Number
Pay period — The date range this paycheck covers (e.g., Jan 15 – Jan 31)
Pay date — When the paycheck was issued

2. Earnings Section

Regular hours / Regular pay — Your standard hourly rate × hours worked, or your salary for the period
Overtime pay — Hours over 40/week at 1.5× your regular rate (federal law for non-exempt employees)
Bonus / Commission / PTO — Any additional compensation types
Gross pay (current) — Total earnings for this pay period before any deductions
Gross pay (YTD) — Total earnings year-to-date before deductions

3. Federal Tax Withholding

Federal Income Tax — Withheld based on your W-4 filing status and allowances. More allowances = less withheld.
Social Security Tax (OASDI) — 6.2% of gross wages, up to the annual wage base ($176,100 in 2026)
Medicare Tax (HI) — 1.45% of all wages, no cap. An extra 0.9% applies above $200,000 (single) or $250,000 (joint)
Total FICA — Social Security + Medicare = 7.65% total from your paycheck

4. State and Local Tax Withholding

State income tax — Varies by state. Nine states have no income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY.
State disability insurance (SDI) — Required in CA, HI, NJ, NY, RI. Funds short-term disability benefits.
Local income tax — Some cities (NYC, Philadelphia, Detroit) levy their own income tax

5. Pre-Tax Deductions

These reduce your taxable gross income before taxes are calculated:

401(k) contributions — Reduces federal and state taxable income (but not FICA)
Health insurance premiums — If employer-sponsored, usually pre-tax under Section 125
HSA / FSA contributions — Health Savings Account or Flexible Spending Account
Dental and vision premiums — Usually pre-tax
Commuter benefits — Transit and parking pre-tax up to IRS limits

6. Post-Tax Deductions

These come out after taxes are calculated — they do not reduce your taxable income:

Roth 401(k) — Post-tax retirement contributions (withdrawals are tax-free in retirement)
Life insurance above $50,000 — IRS imputed income rules
Wage garnishments — Court-ordered deductions for child support, student loans, or debt
Union dues

7. Net Pay

Net pay = Gross pay − all taxes − all deductions

This is the amount deposited to your bank account or paid by check. Also called "take-home pay."

A rough rule of thumb: most employees take home 70-80% of their gross pay depending on state, benefits elected, and retirement contributions.

Year-to-Date (YTD) Columns

Most pay stubs show a YTD column alongside the current-period amounts. YTD totals accumulate from January 1 of the current year. Use these to:

Verify your annual W-2 will match your final pay stub YTD
Track your 401(k) contributions vs. the IRS annual limit ($23,000 in 2026)
Confirm your Social Security wages stop being taxed once you hit the wage base cap
Monitor deductible medical expenses for tax purposes

Common Pay Stub Errors to Watch For

Wrong pay rate (especially after a raise)
Missing overtime for hours over 40
Incorrect tax filing status (check if your W-4 changes were applied)
401(k) employer match not appearing
Health insurance deducted at the wrong amount after open enrollment
Social Security still being withheld after hitting the annual wage base

Extract Pay Stub Data Automatically

Processing pay stubs for income verification, mortgage applications, or payroll audits? Pay Stub Parser extracts all pay stub data automatically — gross pay, net pay, tax withholding, YTD totals, and every deduction line — from PDF pay stubs in seconds. Clean structured output, no manual data entry.