Here’s a sample pay stub. The numbered parts match the sections below.
| This paycheck | Year to date | |
|---|---|---|
| 1 Earnings | ||
| Salary | $2,307.69 | $23,076.90 |
| 2 Deductions before tax | ||
| 401(k) (5%) | -$115.38 | -$1,153.80 |
| Health insurance | -$60.00 | -$600.00 |
| 3 Taxes | ||
| Federal income tax | -$172.03 | -$1,720.30 |
| Social Security (OASDI) | -$139.36 | -$1,393.60 |
| Medicare (MED) | -$32.59 | -$325.90 |
| Illinois income tax | -$99.98 | -$999.80 |
| 4 Deductions after tax | ||
| Union dues | -$15.00 | -$150.00 |
| 5 Net pay | $1,673.35 | $16,733.50 |
An example only: your employer’s layout and names will differ. The numbers match the sections of this guide.
1. Earnings (gross pay)
This is everything you earned before anything is taken out.
- Hourly: your hours × your rate. Overtime is listed separately, usually at 1.5 times your rate for hours over 40 in a week.
- Salary: your yearly salary divided by the number of paychecks: 26 if you’re paid every two weeks, 24 if twice a month.
Bonuses, commissions and tips may have their own lines.
2. Deductions before tax
These come out before income tax is worked out, so you pay less tax:
- 401(k) or 403(b) contributions (traditional, not Roth). These lower your income tax, but not Social Security and Medicare.
- Health, dental and vision insurance paid through your employer’s cafeteria (Section 125) plan.
- HSA or FSA contributions through payroll.
Health insurance and HSA contributions taken this way also skip Social Security and Medicare tax, so they save you a little more than the same amount in a 401(k).
3. Taxes
| Line on your stub | What it is |
|---|---|
| Federal income tax (FIT or FITW) | An estimate based on the Form W-4 you gave your employer. The final amount is settled when you file your tax return. |
| Social Security (OASDI) | 6.2% of your pay, up to a yearly limit |
| Medicare (MED) | 1.45% of all your pay, plus 0.9% once you pass $200,000 in a year |
| State and local income tax | If your state or city has one. Nine states don’t tax wages. |
| State programs | Such as California SDI or New York paid family leave, if your state has them |
Social Security and Medicare together are called FICA. See what FICA is.
4. Deductions after tax
These come out after tax, so they don’t lower it: Roth 401(k) contributions, union dues, some insurance, charity donations through payroll, and court orders such as child support.
5. Net pay
What’s left after everything above. This is the amount paid into your bank account.
A real example
A $75,000 salary in California, paid every two weeks, line by line:
| $75,000 in California | Per paycheck | A year |
|---|---|---|
| Gross pay | $2,884.62 | $75,000 |
| Federal income tax | −$295.00 | −$7,670 |
| Social Security | −$178.85 | −$4,650 |
| Medicare | −$41.83 | −$1,088 |
| California income tax | −$102.50 | −$2,665 |
| CA SDI | −$37.50 | −$975 |
| Take-home pay | $2,228.94 | $57,952 |
Paid every two weeks (26 paychecks), as a single filer with the standard deduction and no pre-tax deductions, on 2026 tax rules. That's 22.7% of the salary in tax overall (the effective rate), and 39.0% on the next dollar earned (the marginal rate).
Common abbreviations
| On your stub | Means |
|---|---|
| FIT, FITW, FWT | Federal income tax withheld |
| SIT, SWT | State income tax withheld |
| OASDI, SS, FICA-SS | Social Security |
| MED, MEDI, FICA-MED | Medicare |
| SDI, PFL, FLI | State disability insurance and paid family leave |
| 401K, 403B | Retirement contributions (pre-tax unless marked Roth) |
| HSA, FSA | Health savings or flexible spending account |
| YTD | Year to date: the total so far this year |
Check it each payday
- Are your hours and pay rate right?
- Does your 401(k) percentage match what you chose?
- Do your filing status and withholding look sensible?
To see what your take-home pay should be, try the paycheck calculator. If your federal withholding looks too high or too low over the year, give your employer a new Form W-4.