# How to Read a Pay Stub: Every Line, Abbreviation and YTD Figure

Read a pay stub from gross pay down: pre-tax deductions set taxable wages, taxes are figured on those, after-tax deductions follow, and the rest is net pay.

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- **Canonical URL:** https://dothecalculation.com/blog/finance/how-to-read-a-pay-stub
- **Category:** Finance
- **Author:** Do The Calculation Team
- **Published:** 2026-09-26
- **Reading time:** 19 min read
- **Publisher:** Do The Calculation (https://dothecalculation.com)
- **Methodology:** https://dothecalculation.com/methodology

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## How do you read a pay stub?

Read a pay stub from the top down. Gross pay is everything earned in the period. Pre-tax deductions, such as a traditional 401(k) or a health premium, come off first and set your taxable wages. Federal income tax, Social Security, Medicare and any state tax are worked out on those wages. After-tax deductions come off next, and what is left is net pay, the amount paid to you. The year-to-date column repeats each figure for the calendar year so far.

The rest of this guide takes one complete pay stub and explains every block on it, then gives a table of more than forty abbreviations payroll systems print, shows how year-to-date totals and the Social Security cap appear, reconciles a final stub to the boxes on Form W-2, and ends with a checklist of the mistakes worth looking for and who to contact when you find one.

Tool: [Open the free pay stub generator](https://dothecalculation.com/tools/pay-stub-generator) — The example below comes from its sample stub. Employers and employees can use it to see how each figure on a stub is built, with the IRS withholding worksheet shown line by line. It runs in the browser with no sign-up.

## The four main parts of a pay stub

Layouts differ from one payroll provider to another, but every stub has the same four parts: who and when (employer, employee, pay period and pay date), what you earned (the earnings table), what was taken out (pre-tax deductions, taxes and after-tax deductions), and what you received (net pay, and how it was paid). The Consumer Financial Protection Bureau’s classroom handout on reading a pay stub uses the same order and defines net pay as the amount you receive “after taxes and other deductions are taken out” (https://files.consumerfinance.gov/f/documents/cfpb_building_block_activities_how-to-read-pay-stub_handout.pdf).

_[Figure: From gross pay to net pay — Each step uses only the figures above it. The order matters because pre-tax deductions change what each tax is charged on.]_

## A complete pay stub, worked through

The example is the sample stub in the pay stub generator: a baker at a small bakery in Harrisburg, Pennsylvania, paid every two weeks at $22.50 an hour, with a 5% 401(k) deferral and an $85.00 health insurance premium taken through the employer’s Section 125 cafeteria plan. The employee filed a 2026 Form W-4 as single and left Steps 2, 3 and 4 blank. It is the first stub of the year in the tool, so each year-to-date figure equals the current one; on a real stub later in the year they would be larger.

**Earnings**
| Description | Rate | Hours | Current | Year to date |
| --- | --- | --- | --- | --- |
| Regular | 22.50 | 80.00 | 1,800.00 | 1,800.00 |
| Overtime | 33.75 | 4.00 | 135.00 | 135.00 |
| Gross pay |  | 84.00 | 1,935.00 | 1,935.00 |

**Pre-tax deductions**
| Description | Current | Year to date |
| --- | --- | --- |
| 401(k) (5%) | 96.75 | 96.75 |
| Health insurance (Section 125) | 85.00 | 85.00 |
| Total pre-tax | 181.75 | 181.75 |

**Taxes withheld**
| Description | Current | Year to date |
| --- | --- | --- |
| Federal income tax | 126.54 | 126.54 |
| Social Security | 114.70 | 114.70 |
| Medicare | 26.83 | 26.83 |
| Pennsylvania income tax | 56.80 | 56.80 |
| Total taxes | 324.87 | 324.87 |

**Summary**
|  | Current | Year to date |
| --- | --- | --- |
| Gross pay | $1,935.00 | $1,935.00 |
| Pre-tax deductions | $181.75 | $181.75 |
| Federal taxable wages | $1,753.25 | $1,753.25 |
| Taxes | $324.87 | $324.87 |
| After-tax deductions | $0.00 | $0.00 |
| Net pay | $1,428.38 | $1,428.38 |

The check: $1,935.00 − $181.75 − $324.87 = $1,428.38. Every stub should pass that test. Gross pay minus pre-tax deductions, minus taxes, minus after-tax deductions, plus any non-taxable reimbursement, equals net pay to the cent.

## The header: employer, employee and pay period

The top of the stub names the employer, usually with its address, and the employee, usually with an employee number or the last four digits of the Social Security number. Many states require exactly that: California’s wage statement law allows only the last four digits of the Social Security number or an employee ID. A full Social Security number on a stub is a warning sign, not a feature. The pay period start and end dates show which days of work this pay covers, and the pay date shows when it was paid. The pay date decides the tax year, so wages for the last week of December that are paid on January 2 count in the new year.

Some stubs also print the filing status and allowances or W-4 details payroll is using, the pay frequency, the check number or the last digits of the bank account for direct deposit, and the employee’s department. If the filing status on the stub does not match the Form W-4 you gave your employer, that alone explains a withholding difference.

## The earnings block: rate, hours, current and YTD

Each earnings line shows a type (regular, overtime, holiday, vacation or PTO, sick, bonus, commission, tips), the rate, the hours and the amount for this period, then the year-to-date amount. For hourly pay, rate × hours should equal the current amount; check it. Overtime is usually printed at the overtime rate: here $22.50 × 1.5 = $33.75 an hour, and 4 hours make $135.00. The federal overtime rule, time and a half for hours over 40 in a workweek for non-exempt employees, is explained in the [overtime pay guide](/blog/business/overtime-pay-calculation).

A salaried stub usually shows one salary line, sometimes with hours for information. Reported cash tips appear in earnings because they are wages for tax purposes, even though the employee already has the money; payroll then takes them back out before net pay. A reimbursement for expenses, such as mileage under an accountable plan, is not wages and should appear apart from earnings with no tax on it.

## Why a stub has three different taxable wage figures

The most confusing thing on a stub is that the same pay is taxed on different amounts. It happens because each pre-tax deduction is excluded from some taxes and not others. A traditional 401(k) deferral is left out of the wages used for federal income tax, but it is still subject to Social Security and Medicare. A Section 125 health premium is left out of both. Form W-2 follows the same rule: its instructions tell employers not to include elective deferrals in box 1, but to report them in boxes 3 and 5 (https://www.irs.gov/pub/irs-pdf/iw2w3.pdf).

**The three wage bases on the example stub**
| Base | How it is worked out | Amount |
| --- | --- | --- |
| Federal income tax wages | $1,935.00 − 401(k) $96.75 − health $85.00 | $1,753.25 |
| Social Security and Medicare wages | $1,935.00 − health $85.00 (the 401(k) stays in) | $1,850.00 |
| Pennsylvania wages | $1,935.00 − health $85.00 (Pennsylvania taxes 401(k) deferrals) | $1,850.00 |

Pennsylvania is one of the states that does not follow the federal treatment of 401(k) deferrals; its employer guide says they “should be included in Pennsylvania gross wages”. Most states follow the federal definition, so state wages usually equal federal income tax wages. The [Excel payroll guide](/blog/templates/excel-payroll-gross-to-net) sets out the same bases as spreadsheet formulas.

## The taxes block: federal, Social Security, Medicare and state

### Federal income tax (FIT, FWT, FITW)

Federal income tax withholding is not a flat percentage. Payroll systems follow IRS Publication 15-T (https://www.irs.gov/publications/p15t): they annualise the period’s taxable wages, subtract an amount that depends on the Form W-4, look the result up in an annual rate schedule and divide back down. For the example, $1,753.25 × 26 = $45,584.50; subtract $8,600 for a single filer to get $36,984.50; the 2026 schedule charges $1,240.00 plus 12% of the amount over $19,900, which is $3,290.14 a year; divided by 26, that is $126.54 for the period. The pay stub generator shows every line of that worksheet.

Withholding is an estimate of the year’s tax, spread over paychecks, not the tax itself. The [take-home paycheck calculator](/calculators/take-home-paycheck-calculator) and the [income tax calculator](/calculators/income-tax-calculator) estimate the year’s actual tax, which is what the withholding is trying to cover. If the two drift far apart, the IRS Tax Withholding Estimator (https://www.irs.gov/individuals/tax-withholding-estimator) tells you what to change on a new Form W-4.

### Social Security (OASDI, SS, FICA-SS)

Social Security is 6.2% of Social Security wages, matched by another 6.2% from the employer (IRS Topic 751, https://www.irs.gov/taxtopics/tc751). OASDI stands for Old-Age, Survivors and Disability Insurance, the program’s formal name. It stops for the year once your wages from that employer reach the wage base, $184,500 in 2026 (https://www.ssa.gov/oact/cola/cbb.html), so the most an employee pays in 2026 is $11,439.00. In the example, 6.2% of $1,850.00 is $114.70.

### Medicare (MED, MEDI, FICA-MED, HI)

Medicare is 1.45% of Medicare wages with no cap, matched by the employer: $26.83 in the example. The employer must also withhold an extra 0.9% Additional Medicare Tax on wages above $200,000 in a calendar year, “without regard to filing status”, and there is no employer match for it. FICA, the Federal Insurance Contributions Act, is the law behind both taxes, so some stubs print a single FICA line for the two together, 7.65% in total below the wage base.

### State and local income tax, and state programs

State income tax (SIT, SWT) follows each state’s own withholding formula. Pennsylvania is a flat 3.07%, so the example withholds $56.80 on $1,850.00. Nine states have no tax on wages. Local taxes (city, county or school district) appear as their own lines. Some states also take employee contributions for disability or paid leave programs, which show as SDI, TDI, FLI, PFL or PFML; for example California SDI is 1.3% of wages in 2026 and New York paid family leave is 0.432% up to $411.91 a year.

## Pre-tax and after-tax deductions

Deductions are split into those taken before tax and those taken after. Pre-tax deductions reduce at least one tax base, which is why they appear above the taxes on most stubs. The common ones are a traditional 401(k), 403(b) or 457 deferral; medical, dental and vision premiums under a Section 125 plan (printed as S125, SEC125, CAF or MED/DEN/VIS); HSA and FSA contributions through that plan; and commuter benefits. After-tax deductions come out of pay that has already been taxed: Roth 401(k) contributions, wage garnishments and child support orders, union dues, repayments of a loan from the employer or the 401(k), charitable gifts, and voluntary insurance such as supplemental life.

Limits apply to some of them across the year. For 2026 a 401(k) deferral is capped at $24,500, plus $8,000 from age 50 or $11,250 for ages 60 to 63 (IRS Notice 2025-67, https://www.irs.gov/pub/irs-drop/n-25-67.pdf), and HSA contributions at $4,400 for self-only and $8,750 for family coverage (Rev. Proc. 2025-19, https://www.irs.gov/pub/irs-drop/rp-25-19.pdf). The year-to-date column is where you can see how close you are.

## Pay stub abbreviations, A to Z by section

Payroll systems squeeze labels into narrow columns, and each provider has its own shorthand. The table covers the codes you are most likely to meet. When one is not here, the payroll or HR team can tell you what it means, and the year-end Form W-2 will show where the amount ended up.

**Common pay stub abbreviations and what they mean**
| Abbreviation | Stands for | What it is |
| --- | --- | --- |
| GROSS | Gross pay | Total earnings before anything is taken out |
| NET | Net pay | What is paid to you after taxes and deductions |
| YTD | Year to date | Running total from January 1 to this pay date |
| CUR | Current | The amount for this pay period only |
| REG | Regular pay | Straight-time hours at the normal rate |
| OT | Overtime | Hours paid at the overtime rate, usually 1.5× |
| DT | Double time | Hours paid at 2× the regular rate |
| HOL | Holiday pay | Pay for a paid holiday |
| PTO | Paid time off | Paid leave taken, or the leave balance |
| VAC | Vacation | Vacation hours paid or remaining |
| SICK | Sick pay | Paid sick leave used, or the balance |
| BON | Bonus | A bonus, treated as supplemental wages |
| COMM | Commission | Sales commission, supplemental wages |
| RETRO | Retroactive pay | Back pay for an earlier period, such as a late raise |
| REIM | Reimbursement | Expense repayment; not wages when under an accountable plan |
| TIPS / CCT | Tips / credit card tips | Reported tips, taxed as wages |
| FIT / FWT / FITW | Federal income tax (withheld) | Federal income tax withheld |
| FICA | Federal Insurance Contributions Act | Social Security and Medicare together |
| SS / OASDI | Social Security / Old-Age, Survivors and Disability Insurance | 6.2% up to the wage base |
| MED / MEDI / HI | Medicare / Hospital Insurance | 1.45% of all Medicare wages |
| ADDL MED | Additional Medicare Tax | 0.9% on wages above $200,000 in the year |
| SIT / SWT | State income tax (withheld) | State income tax withheld |
| LIT / LWT / CITY | Local income or wage tax | City, county or school-district tax |
| SDI | State Disability Insurance | Employee disability contribution (for example California) |
| TDI | Temporary Disability Insurance | Disability contribution in NJ, HI and RI |
| SUI | State Unemployment Insurance | Employee share, only in a few states such as NJ |
| FLI | Family Leave Insurance | New Jersey family leave contribution |
| PFL | Paid Family Leave | New York paid family leave contribution |
| PFML | Paid Family and Medical Leave | Paid leave contribution in WA, MA and others |
| 401K / 403B / 457 | Retirement plan deferral | Traditional (pre-tax) retirement contribution |
| ROTH | Roth 401(k) | After-tax retirement contribution |
| 401K LN | 401(k) loan repayment | After-tax repayment of a plan loan |
| S125 / SEC125 / CAF | Section 125 cafeteria plan | Pre-tax benefits such as health premiums |
| MED / DEN / VIS | Medical, dental, vision | Health insurance premiums, usually pre-tax |
| HSA | Health savings account | Pre-tax through a cafeteria plan |
| FSA / DCFSA | Flexible spending account / dependent care FSA | Pre-tax health or dependent care set-aside |
| LTD / STD | Long-term / short-term disability | Disability insurance premium |
| LIFE / GTL | Life insurance / group-term life | Premium, or the taxable value of employer-paid cover |
| GARN | Garnishment | Court or agency order, taken after tax |
| CS | Child support | Support order, taken after tax |
| UD / UNION | Union dues | After-tax dues |
| EE | Employee | The employee’s share of a tax or benefit |
| ER | Employer | The employer’s share, shown for information |
| EIN | Employer Identification Number | The employer’s federal tax ID |
| DD / DIR DEP | Direct deposit | Amount paid into the bank account |
| CHK | Check | Amount paid by paper check |

## Year-to-date totals, and how caps show up in them

The year-to-date column adds up every pay date in the calendar year so far. It is useful for three things. First, it shows your progress toward any limit: the $184,500 Social Security wage base, the $200,000 point where Additional Medicare starts, and the 401(k) and HSA limits. Second, it lets you check your withholding against the tax you expect for the year. Third, the last stub of December becomes the draft of your Form W-2.

When a cap is reached in the middle of a period, only the part below it is taxed. Suppose Social Security wages so far this year are $183,000 and this period adds $5,000. Only $1,500 is still below the $184,500 base, so Social Security for the period is 6.2% × $1,500 = $93.00, and every later stub that year shows $0.00 on the Social Security line while the year-to-date figure stays at $11,439.00. That drop in deductions is why take-home pay rises late in the year for higher earners. The reverse happens with Additional Medicare: once year-to-date Medicare wages pass $200,000, a new 0.9% line appears.

> **Two jobs, two caps** — The Social Security cap is applied separately by each employer, so with two jobs you can have more than $11,439.00 withheld in total. The excess is credited back on your income tax return. The Additional Medicare threshold is also applied per employer, which is why the tax on your return can differ from what was withheld.

## Reconciling your last pay stub to Form W-2

Your W-2 is built from the same figures as your December stub, but each box uses a different base, which is why box 1 is often lower than boxes 3 and 5. If the example employee were paid the same every period for 26 periods, the W-2 would show the figures below. The federal tax is 26 × $126.54, which differs by a few cents from the annual $3,290.14 because each paycheck is rounded to the cent.

**From a year of the example stubs to Form W-2**
| W-2 box | What goes in it | Example for the year |
| --- | --- | --- |
| Box 1, wages, tips, other compensation | Gross pay less 401(k) deferrals and Section 125 deductions | $50,310.00 − $2,515.50 − $2,210.00 = $45,584.50 |
| Box 2, federal income tax withheld | Year-to-date federal income tax | $3,290.04 |
| Box 3, Social Security wages | Gross pay less Section 125 (401(k) included), capped at $184,500 | $48,100.00 |
| Box 4, Social Security tax withheld | Year-to-date Social Security | $2,982.20 |
| Box 5, Medicare wages and tips | Same as box 3 but with no cap | $48,100.00 |
| Box 6, Medicare tax withheld | Year-to-date Medicare, including any Additional Medicare | $697.58 |
| Box 12, code D | Traditional 401(k) deferrals | $2,515.50 |
| Box 12, code DD | Total cost of employer-sponsored health coverage (not taxable) | Employee and employer premium combined |
| Box 16 and 17 | State wages and state tax | $48,100.00 and $1,476.80 |

Other box 12 codes you may see are AA for Roth 401(k) contributions and W for HSA contributions, including those you made through the cafeteria plan, both described in the W-2 instructions. Box 14 (split into 14a and 14b from 2026) is free text; employers use it for items such as state disability insurance and union dues. To turn your annual figures into a per-paycheck or hourly view, the [salary calculator](/calculators/salary-calculator) converts in both directions.

## Why federal withholding looks too low, too high, or suddenly different

- Too low: the Step 2 box was not checked even though you or your spouse has a second job, so each employer withholds as if its pay were your only income. Or Step 3 credits for children were claimed in full on more than one job. Or you claimed exempt.
- Too high: the Step 2 box was checked when it did not need to be, an extra amount was entered in Step 4(c), or a 2019 or earlier form with zero allowances is still on file.
- Suddenly different: a bonus or commission was paid this period (withheld either at a flat 22% or by adding it to regular pay, which pushes the annualised figure up), overtime raised the period’s wages, a new Form W-4 took effect, a pre-tax deduction started or stopped, or the new year’s tables began in January.
- State different from last year: many states change rates or allowance amounts on January 1, and some mid-year; Utah, for example, changed its formula for pay periods from June 1, 2026.

Withholding that is too low is not a payroll error if it follows the Form W-4 on file. The fix is a new W-4, which the IRS Tax Withholding Estimator helps you fill in.

## Checklist: errors to look for on a pay stub

- Rate and hours: the hourly rate matches your offer letter or last raise, and the hours match your timesheet. The [timesheet guide](/blog/utility/how-to-calculate-work-hours-timesheet) shows how to total hours from clock times.
- Overtime: hours over 40 in a workweek are paid at 1.5 times for non-exempt employees, and the overtime rate uses the regular rate, including any nondiscretionary bonus.
- Filing status: the status and W-4 details printed on the stub are the ones you filed.
- Social Security above the wage base: once year-to-date Social Security wages reach $184,500, the Social Security line should be $0.00.
- A pre-tax deduction taxed: federal taxable wages should be lower than gross pay by exactly the pre-tax deductions; if not, a 401(k) or health premium is being taken after tax.
- Medicare on the wrong base: Medicare wages should equal Social Security wages until the wage base is reached, then keep going.
- State: the right state is withheld, especially if you moved or work across a state line.
- Deductions you did not authorise, or ones that should have stopped, such as a finished loan repayment.
- Net pay: gross minus every deduction and tax equals net pay, and net pay matches what arrived in your bank account.
- Year to date: this stub’s YTD equals last stub’s YTD plus this stub’s current amounts.

## What to do when your pay stub is wrong

Start with payroll or HR, in writing, with the stub and the figure you expected. Most errors are data entry: a wrong rate, a missing timesheet, an old W-4. Payroll corrects them on the next stub or with a separate check, and a correction to taxes should show up in the year-to-date figures.

If unpaid wages or overtime are not fixed, contact your state labor department, which enforces the state’s pay and wage statement laws, or the US Department of Labor’s Wage and Hour Division for federal minimum wage and overtime. The Division takes complaints on 1-866-487-9243 and keeps the complainant’s name confidential (https://www.dol.gov/agencies/whd/contact/complaints). Keep your stubs, timesheets and bank statements: the FLSA requires employers to keep payroll records for three years (Fact Sheet #21, https://www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping), but your own copies are your evidence. Whether an employer must give you a stub at all depends on your state; see [pay stub requirements by state](/blog/business/pay-stub-requirements-by-state).

## Frequently asked questions

**What does YTD mean on a pay stub?**

Year to date: the total of each line from January 1 to this pay date. YTD gross pay is everything earned so far this year, and YTD federal tax is everything withheld so far. The YTD figures on your last stub of the year should match your Form W-2, allowing for the different wage bases in boxes 1, 3 and 5.

**Why is my net pay so much less than my gross pay?**

Because taxes and deductions come out first. On the example stub, $1,935.00 of gross pay becomes $1,428.38 of net pay: $181.75 goes to a 401(k) and a health premium, and $324.87 to federal income tax, Social Security, Medicare and Pennsylvania tax. The 401(k) money is still yours, and the health premium buys coverage, so not all of the gap is tax.

**What do MED and SS mean on my paycheck?**

SS is Social Security, 6.2% of your Social Security wages up to $184,500 in 2026, sometimes printed as OASDI. MED is Medicare, 1.45% of all Medicare wages, plus 0.9% on wages over $200,000 from one employer. Together they are FICA taxes, and your employer pays a matching 6.2% and 1.45%.

**Is 401(k) taken out before taxes?**

A traditional 401(k) deferral is taken out before federal income tax, and before state income tax in most states, but not before Social Security and Medicare. That is why federal taxable wages on a stub are lower than Social Security wages. A Roth 401(k) contribution is taken out after all taxes. Pennsylvania is an exception at state level: it taxes traditional 401(k) deferrals.

**What does S125 or SEC125 mean on a pay stub?**

It refers to Section 125 of the Internal Revenue Code, the cafeteria plan rule that lets health, dental and vision premiums, HSA and FSA contributions come out of pay before federal income tax, Social Security and Medicare. A line labelled S125 or CAF is a pre-tax benefit deduction, and it lowers every wage base on the stub.

**What is the difference between EE and ER on a pay stub?**

EE is the employee’s share and ER the employer’s. Only EE amounts are taken from your pay. ER amounts, such as the employer’s matching Social Security and Medicare, a 401(k) match or the employer’s share of a health premium, are shown for information; they are a cost to the business, not a deduction from you.

**Why did my federal withholding change when my pay did not?**

Common reasons are a new Form W-4, a pre-tax deduction starting or stopping, the new year’s withholding tables in January, or a supplemental payment in the same check. If none of those apply, compare the filing status on the stub with your W-4, and ask payroll to show the calculation.

**How do I know if my employer withheld too much?**

Estimate the year’s federal tax with an income tax calculator or the IRS Tax Withholding Estimator and compare it with your year-to-date withholding projected to December. Withholding that follows your W-4 is not an overpayment you can claim from the employer; the extra comes back as a refund when you file. If you want less withheld, give your employer a new Form W-4. Social Security above $11,439.00 from two or more employers is credited on your return.

**What is a garnishment on a pay stub?**

An amount the employer must withhold under a court or agency order and pay to someone else, such as a creditor, a child support agency or the IRS. It is taken after tax. Federal law limits how much of your disposable earnings most garnishments can take, and child support orders have their own limits; the order or your state labor department can tell you which applies.

Tool: [See how a stub is built](https://dothecalculation.com/tools/pay-stub-generator) — The free pay stub generator shows every figure on a stub, with the federal withholding worksheet line by line. Employers use it to produce stubs for wages they paid; employees can use it to rebuild records from a real payroll.

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_Source: [Do The Calculation](https://dothecalculation.com/blog/finance/how-to-read-a-pay-stub). Quote freely with attribution and a link to this page._