How to Read Your Pay Stub Line by Line
What a pay stub shows you
A pay stub is the document your employer gives you with each paycheck — either printed, emailed, or posted to an online portal. It breaks down exactly how much you earned, what came out of that amount, and what you're taking home. Every number on it connects to something real: taxes withheld, insurance premiums, retirement contributions, or wage garnishments.
The stub serves two purposes. First, it's your record of what you were paid and what was deducted. Second, it's proof of income when you need to show a landlord, lender, or government program how much money you actually make. Learning to read it means you can spot errors before they affect your taxes or benefits, and you'll know exactly where your money goes.
Key Takeaways
- Your gross pay is what you earned before anything comes out; your net pay is what you actually take home after taxes and deductions.
- Federal income tax, Social Security, and Medicare are withheld from almost every paycheck, and the amounts depend on what you claimed on your W-4 form.
- Deductions fall into two categories: pre-tax (which lower your taxable income) and post-tax (which don't), and knowing the difference helps you understand your take-home pay.
- Year-to-date totals on your stub show cumulative earnings and withholdings since January 1, which you'll use to check your W-2 at tax time.
- If numbers don't match your hours worked or your previous stubs, contact your payroll department immediately — errors compound over time.
Gross pay: what you actually earned
Gross pay is the total amount you earned before anything is taken out. On your stub, you'll see this broken down by category: hourly wages, salary, overtime, bonuses, or commissions — whatever applies to your job. If you're paid hourly, the stub should show your hours worked and your hourly rate, multiplied together.
This is the number you use when you need to prove income to a landlord or lender. It's also the number your taxes are calculated from. If you worked 40 hours at $15 an hour, your gross pay for that week is $600, even though you won't take home $600 after deductions.
Mandatory withholdings: taxes and Social Security
Federal income tax withholding is money set aside for the IRS based on what you claimed on your W-4 form when you started the job. The more dependents or exemptions you claimed, the less gets withheld. The less you claimed, the more comes out now — but you may get it back as a refund at tax time. This amount varies from paycheck to paycheck depending on your gross pay.
Social Security is a flat 6.2% of your gross pay, up to a yearly cap (the cap changes each year). Medicare is 1.45% of your gross pay with no cap. These two combined are often labeled "FICA" on your stub. Unlike federal income tax, these amounts don't change based on your W-4 — they're the same percentage every time. Your employer also pays an equal amount into Social Security and Medicare on your behalf, but that doesn't show on your pay stub.
If you're self-employed or have a side business, you pay both the employee and employer portions yourself, which is why self-employment tax is higher. But if you're a regular employee, these three withholdings (federal income tax, Social Security, and Medicare) come out of nearly every paycheck.
Pre-tax and post-tax deductions
Pre-tax deductions come out before federal income tax is calculated, which means they lower the amount the government taxes you on. Health insurance premiums, dental and vision coverage, and contributions to a 401(k) retirement plan are usually pre-tax. If you contribute $100 a month to health insurance as a pre-tax deduction, your taxable income is $100 lower that month, so you pay less federal income tax.
Post-tax deductions come out after taxes are calculated, so they don't reduce what you owe the IRS. Wage garnishments (court-ordered payments to creditors or for child support), some types of insurance, and union dues are often post-tax. These reduce your take-home pay but don't change your tax bill.
Your stub should label which deductions are pre-tax and which are post-tax, though the labeling varies by employer. If you're not sure, ask your payroll department — it matters for understanding both your take-home pay and your actual tax liability.
Net pay: what you actually take home
Net pay is your gross pay minus all withholdings and deductions. This is the amount that actually hits your bank account or paycheck. If your gross pay is $1,200 and your total deductions are $300, your net pay is $900.
The math on your stub should always work this way: Gross Pay − All Deductions = Net Pay. If it doesn't, there's an error. Check it against your hours worked and your previous stubs. Small errors can mean you're owed money, and large errors need immediate correction.
Year-to-date totals and what they're for
Most pay stubs show year-to-date (YTD) totals for gross pay, federal withholding, Social Security, Medicare, and each deduction. These are running totals since January 1 of the current year. They're not just informational — you'll use them to verify your W-2 form when it arrives in January.
Your W-2 should match your YTD gross pay and withholdings from your final paycheck of the year. If they don't match, you have a record on your pay stubs to show what actually happened. YTD totals also help you track whether you're on pace to hit income thresholds for certain benefits or tax credits, and they show you how much you've paid into Social Security and Medicare over the year.
Common errors and what to do about them
The most frequent mistakes are wrong hours entered, incorrect tax withholding after a W-4 change, deductions that shouldn't be there, or duplicate charges. If your hours don't match what you worked, if a deduction appears twice, or if your withholding suddenly jumped without explanation, contact your payroll department in writing (email is fine) and keep a copy. Ask them to explain the discrepancy and correct it if needed.
Don't wait to report errors. If you're underpaid, you want the correction on your next check. If you're overpaid, your employer will eventually catch it, and it's better to address it proactively. If payroll can't explain a number, ask to speak with a manager or your HR department. You have the right to understand what's on your pay stub.
Frequently Asked Questions
Why is my federal income tax withholding different every paycheck?
Federal withholding is calculated based on your gross pay and what you claimed on your W-4. If your pay varies (overtime, bonuses, or commission), your withholding will too. If you recently changed your W-4, the withholding will shift starting with your next check. If the change seems wrong, review your W-4 or contact payroll.
What does it mean if my Social Security or Medicare withholding stops partway through the year?
Social Security has a yearly earnings cap; once you earn above it, Social Security withholding stops for the rest of that year. Medicare has no cap and continues all year. This is normal for high earners. Your W-2 will show the correct totals at year-end.
Can I use my pay stub to prove income for an apartment application?
Yes. Most landlords accept recent pay stubs as proof of income. Bring the most recent one, or the last two if you want to show consistency. The gross pay number is what they'll look at. If you're self-employed or have irregular income, you may need to provide additional documents like tax returns.
What should I do if I think my employer is withholding the wrong amount of taxes?
First, check your W-4 to see what you claimed. If it's wrong, fill out a new W-4 and submit it to payroll. If your W-4 is correct but the withholding still seems off, contact the IRS or a tax professional. You can also adjust your withholding mid-year if your life circumstances change.
Do I need to keep my pay stubs?
Yes. Keep them for at least three years. They're proof of income for loans or housing, they help you verify your W-2 at tax time, and they're your record if there's ever a wage dispute. Store them somewhere safe or take photos of them.