How to Read a Pay Stub

Start at the top

The header of your pay stub confirms the basics: who paid you, who you are, and when. Verify that your legal name is spelled correctly, your employer's name and EIN are present, and the pay period dates are accurate.

If you see an address you no longer live at, notify HR to update your records — it affects your W-2 delivery and state tax withholding.

Check your earnings

The earnings section shows what you were paid before any deductions. Read each line:

Regular pay

For hourly workers: regular hours × hourly rate. Verify the hours match your records. For salaried workers: annual salary ÷ number of pay periods. A $70,000/year salary paid bi-weekly should show $2,692.31 per period.

Overtime pay

Any hours over 40 in a workweek should be listed here at the overtime rate (at least 1.5× your regular rate under federal law). If you worked overtime but don't see it, that's worth raising with your employer. Use the Overtime Calculator to verify the amount.

Bonuses and commissions

These should be listed as separate line items. Verify the amount matches what was agreed upon or earned.

Gross pay

This should equal the sum of all earnings lines. Use it as your starting point for verifying deductions.

Understand your deductions

Deductions are the amounts subtracted from your gross pay. Each should have a label. Here's how to read the major ones:

Federal income tax

This varies based on your W-4 elections, filing status, and pay amount. If it looks too high or too low, check your W-4 on file with your employer, or use the Paycheck Calculator to estimate what it should be.

Social Security (OASDI)

Should be exactly 6.2% of your gross wages. On $3,000 gross, Social Security = $186.00. If it doesn't match 6.2%, check with payroll. Note: once your annual earnings exceed $184,500 (2026 wage base), Social Security withholding stops for the year.

Medicare (FICA)

Should be 1.45% of all wages with no cap. On $3,000 gross, Medicare = $43.50. High earners (above $200,000) see an additional 0.9% withheld.

State income tax

If you live in a state with income tax, verify the rate. For flat-rate states (like Illinois at 4.95%), the math is straightforward. For progressive states, the withholding is based on annualized income and filing status.

Benefit deductions

Health insurance, dental, vision, 401(k), FSA, and similar deductions should match what you elected during enrollment. Pre-tax deductions reduce your taxable income; post-tax do not.

Verify net pay

Net pay = Gross Pay − All Deductions. Confirm this math. Then verify that the net pay matches what landed in your bank account (for direct deposit) or the face value of your check.

Check year-to-date totals

The YTD column accumulates from January 1. At year-end, your final pay stub's YTD figures should match your W-2:

• YTD Gross → W-2 Box 1 (wages) after pre-tax deductions
• YTD Federal Tax → W-2 Box 2
• YTD Social Security Tax → W-2 Box 4
• YTD Medicare Tax → W-2 Box 6

Discrepancies between your final pay stub and W-2 should be reported to payroll before you file your tax return.

Common errors to look for

• Wrong name or SSN digits: Could affect tax documents. Report to HR immediately.
• Missing overtime: If you worked over 40 hours/week and see no OT line, question it.
• Duplicate deductions: Occasionally a benefit deduction gets applied twice. Check totals.
• Wrong tax state: If you live in State A but work in State B, verify which state tax is withheld.
• Incorrect pay rate: If you received a raise, confirm the new rate appears on the current stub.