How to Read a Pay Stub: Every Line, Decoded
Most people check the deposit amount and file the rest unread. A five-minute tour of what each pay stub section means, and the three errors worth scanning for every single payday.
Published · Paycheck & Income · 2 min read
Payroll systems make mistakes — wrong state, stale W-4, missed retirement contribution, overtime at the wrong rate. Every one of them is easier to fix in the pay period it happened than at tax time. The habit that catches them costs about ninety seconds per payday, once you know what each block means.
The anatomy
- Earnings. Regular hours and rate, overtime, bonuses, PTO paid out. For salaried workers, the per-period slice of the annual figure. Check: does the rate match your last raise, and did overtime hours make it in?
- Pre-tax deductions. Traditional 401(k), health, dental and vision premiums, HSA/FSA. These lower the wages that income tax is computed on — which is why "taxable wages" on the stub is smaller than gross.
- Taxes. Federal withholding, Social Security, Medicare, state and any local tax. Social Security should be 6.2% of FICA wages and Medicare 1.45% — flat rates you can verify with a phone calculator.
- Post-tax deductions. Roth contributions, insurance bought after tax, garnishments.
- Employer contributions. Often shown for information — the match, employer health premium share. Not your money yet, but worth confirming the match is landing.
- Year-to-date columns. The running totals that become your W-2. Mid-year is when discrepancies are still cheap to fix.
Three scans worth doing every payday
1. The state line. After a move or a remote-work change, payroll withholding for the wrong state creates a filing mess that takes two state returns to unwind. This error is common and silent.
2. The retirement contribution. Confirm the percentage matches your election, especially after a raise or plan change — a dropped contribution costs you the match too.
3. Anything that changed. First check after any life event — raise, W-4 update, benefits enrollment, bonus — verify the change actually took effect. Payroll implements what was entered, not what was intended.
If a line looks off, rebuild the check independently: the take-home pay calculator computes what the stub should say from your salary, state, and deductions, which turns "this feels wrong" into a specific line you can take to HR.
Run your own numbers
More on paycheck & income
- The Hourly-to-Salary Conversion Everyone Gets Slightly Wrong
- Gross vs. Net Pay: Why Your $60,000 Salary Is Not $5,000 a Month
- Time and a Half: How Overtime Pay Actually Gets Calculated
This article is general education, not tax, legal, investment, or financial advice. Figures used in examples are illustrations, not quotes or predictions. For decisions that depend on your full situation, talk to a qualified professional.