# How to Read a Pay Stub, Line by Line > A plain-English walkthrough of every section of a US pay stub: pay period, earnings, taxes, deductions, net pay and year-to-date totals, with an example. Source: https://www.paystubnest.com/guides/how-to-read-a-pay-stub Published: 2026-09-25 Publisher: PayStubNest.com ## Short answer A pay stub shows who paid whom, for which pay period, how gross pay was calculated, what was withheld for taxes and deductions, and the net pay that was actually deposited. Read it top to bottom: header, earnings, taxes, deductions, net pay, then the year-to-date column, which adds up everything paid so far this calendar year. A pay stub (also called an earnings statement or wage statement) is the record that goes with a paycheck. It explains how the amount you received was calculated. Once you know the layout, most stubs read the same way, whether they come from a large payroll provider or a small business using a tool like PayStubNest. ## 1. The header: who, when and for what period The top of the stub identifies the people and dates involved: - **Employer name and address.** The business that issued the pay. - **Employee name and address.** Often with an employee ID or the last four digits of a Social Security number, never the full number. - **Pay period.** The start and end dates of the work being paid for, for example March 1 to March 14. - **Pay date.** The date the money was paid. It usually falls a few days after the period ends. The pay date matters more than you might expect: taxes and year-to-date totals follow the calendar year of the pay date, not the work dates. See [our guide to year-to-date totals](https://www.paystubnest.com/guides/year-to-date-totals-on-a-pay-stub) for why. ## 2. Earnings: how gross pay was built The earnings section lists each type of pay with its rate, hours (if hourly) and amount. Common lines include: - **Regular pay:** hourly rate times regular hours, or the salary amount for the period. - **Overtime:** overtime hours at the overtime rate, usually one and a half times the regular rate for non-exempt workers. - **Other earnings:** bonuses, commissions, holiday pay, paid time off, tips. The total of these lines is **gross pay**: what you earned before anything was taken out. Our guide on [hourly vs salaried pay stubs](https://www.paystubnest.com/guides/hourly-vs-salaried-pay-stubs) covers overtime math in more detail. ## 3. Taxes withheld Next come the taxes the employer withheld and sends to the government on your behalf: - **Federal income tax.** Based on your Form W-4 and your pay. See [how federal withholding works](https://www.paystubnest.com/guides/federal-income-tax-withholding-w-4). - **Social Security.** 6.2% of wages, up to an annual wage limit. - **Medicare.** 1.45% of all wages, plus an extra 0.9% on wages above $200,000 in a year. Together these two are called FICA; see [our FICA guide](https://www.paystubnest.com/guides/social-security-and-medicare-fica). - **State and local taxes.** Depending on where you live and work, there may be state income tax, city or county tax, or state disability or paid leave contributions. Some states have no income tax at all. ## 4. Deductions Deductions are amounts taken out for benefits or obligations other than taxes. They are usually grouped as: - **Pre-tax deductions**, such as traditional 401(k) contributions or health insurance premiums paid through a cafeteria plan. These lower the wages that some taxes are calculated on. - **After-tax deductions**, such as Roth 401(k) contributions, union dues or wage garnishments. The difference matters for your taxes, which is why many stubs label them separately. Our guide to [pre-tax vs after-tax deductions](https://www.paystubnest.com/guides/pre-tax-vs-after-tax-deductions) explains each one. ## 5. Net pay Net pay, often called take-home pay, is gross pay minus all taxes and deductions. It should match the amount deposited to your bank account or printed on the check. If the stub shows direct deposit to more than one account, each amount is listed. ## 6. The year-to-date (YTD) column Most stubs have two number columns: **Current** (this pay period) and **YTD** (everything since January 1 of the pay date's year). YTD figures let you check progress toward annual limits and, at year end, should line up with your Form W-2. ## A worked example For example, suppose a stub shows these illustrative round numbers for one biweekly period: - Gross pay: $2,000 - Federal income tax: $150 - Social Security (6.2%): $124 - Medicare (1.45%): $29 - State income tax: $60 - 401(k) contribution: $100 - Union dues (after-tax): $50 Total taken out: $150 + $124 + $29 + $60 + $100 + $50 = $513. Net pay: $2,000 minus $513 = **$1,487**. The federal and state figures here are made up for the example; real amounts depend on the W-4, the state and the pay frequency. For a closer look at where each dollar goes, read [gross pay vs net pay](https://www.paystubnest.com/guides/gross-pay-vs-net-pay). ## What to check every payday 1. The pay period and pay date are correct. 2. Hours and rates match your timesheet or salary agreement. 3. Deductions match what you signed up for. 4. Year-to-date totals increased by exactly this period's amounts. 5. Net pay matches the deposit. If something looks off, ask the person who runs payroll early. Small errors are much easier to fix in the next pay period than at year end. ## Creating accurate pay stubs If you run payroll for a small business or keep records of your own pay, you can [create a pay stub](https://www.paystubnest.com/app/new) by entering hours or salary. The calculator fills in withholding and carries year-to-date totals across a series of stubs. Every stub should reflect pay that was actually issued. Questions about pricing or templates are answered in our [FAQ](https://www.paystubnest.com/faq).