United States · Payroll
Pay stub explained.
Gross pay, deductions, net pay and year-to-date totals, one block at a time, with a worked example and the extra fields some states require.
A pay stub has four blocks: who and when, earnings, deductions, and net pay with year-to-date totals. Gross pay minus every deduction equals net pay. In the worked example below, $2,136.00 gross becomes $1,644.87 net after $62.50 pre-tax, $158.63 in FICA, and hypothetical income tax and a charity gift.
What a pay stub is, and what it is not
A pay stub (also called a pay statement, earnings statement or wage statement) is the record that comes with a paycheck and shows how the money was computed: what you earned, what was taken out and what you were paid. It is not the same as a W-2, which summarises a year after the fact, and it is not a bank deposit record. Federal law does not, as far as we found, make an employer hand you one; the duty comes from state law, and the table of pay stub requirements by state shows which states require it and what must be on it. This page assumes you have a stub in front of you and want to know what each part means.
Block one: who, when and how much time
The top of a stub names the employer and employee and gives two dates people confuse. The pay period is the span of work being paid, for example the two weeks ending Friday. The pay date is the day the money is issued, often several days later. Many states require the pay period dates, the payment date or both; California and Washington require the period dates, and Alaska requires the beginning and ending dates of the period. Employees are often shown by an ID number or the last four digits of the Social Security number; California allows only the last four digits or an ID, never the full number.
Block two: earnings and gross pay
Earnings come first. An hourly stub lists hours and rate for each kind of pay: regular hours, overtime hours, holiday or shift premium, and any bonus or commission. Under the federal overtime provision (29 U.S.C. 207) covered non-exempt employees must be paid at least one and one-half times the regular rate for hours over 40 in a workweek, which is why the overtime line shows a rate higher than the regular line. Some states ask the stub to show both rates and the hours at each, which matters most when you worked two jobs or two rates in the same period. Gross pay is the sum of every earnings line before anything is taken out.
Salaried staff show a flat amount per period instead. Whether hours appear depends on the state and on whether you are exempt from overtime: several states let employers omit hours for overtime-exempt employees, others do not.
Block three: pre-tax and tax deductions
Deductions come in an order that changes your tax. Pre-tax deductions come out before some or all taxes are figured. A health premium paid through a cafeteria plan is a common one, and the IRS says benefits excluded from pay in most cases are not subject to federal income tax withholding, Social Security or Medicare tax (IRS Publication 15-B). Taxes are the second group. Social Security is 6.2% and Medicare 1.45% of wages for the employee (IRS Topic 751), and employers also withhold the 0.9% Additional Medicare Tax on wages above $200,000 in a calendar year (26 U.S.C. 3102(f)). Federal income tax is the amount set by your Form W-4 and the IRS withholding method, and many states add state income tax.
Block four: after-tax deductions, net pay and YTD
After-tax deductions are taken from what is left: a wage garnishment, union dues, a charity gift, or a loan repayment. Net pay is gross pay minus every deduction. It is the number that matches your deposit, so if the deposit and net pay differ, check for split deposits or an off-cycle adjustment before assuming an error. The YTD (year-to-date) column adds each line since 1 January. Illinois writes that total into the statute: its definition of a pay stub includes "the total of wages and deductions year to date" (Public Act 103-0953). The last stub of the year is the one to compare with your W-2.
A worked example, line by line
Hypothetical employee: paid $24.00 an hour, a two-week period of 80 regular hours and 6 overtime hours. The federal and state income tax figures are made up for the example; real ones depend on the W-4 and the state.
| Line | This period | YTD after stub 10* | How it is figured |
|---|---|---|---|
| Regular pay | $1,920.00 | $19,200.00 | 80 hours × $24.00 |
| Overtime pay | $216.00 | $2,160.00 | 6 hours × $36.00 (1.5 × $24.00) |
| Gross pay | $2,136.00 | $21,360.00 | Regular + overtime |
| Health premium (pre-tax) | $62.50 | $625.00 | Cafeteria plan, taken before tax |
| Social Security tax | $128.56 | $1,285.60 | 6.2% × $2,073.50 |
| Medicare tax | $30.07 | $300.70 | 1.45% × $2,073.50 |
| Federal income tax | $180.00 | $1,800.00 | Hypothetical: set by the W-4 and IRS withholding method |
| State income tax | $70.00 | $700.00 | Hypothetical: depends on the state |
| Charity gift (after tax) | $20.00 | $200.00 | Voluntary, taken from net |
| Net pay | $1,644.87 | $16,448.70 | Gross − every deduction above |
*If each of ten stubs looked exactly like this one. A real YTD column adds what actually happened, so bonuses, unpaid weeks and mid-year changes make it differ.
Check the arithmetic: gross $2,136.00 less $62.50 + $128.56 + $30.07 + $180.00 + $70.00 + $20.00 leaves $1,644.87. Social Security and Medicare apply to $2,073.50, not $2,136.00, because the health premium is excluded. If your own stub taxes the full gross and you pay a cafeteria-plan premium, ask payroll why.
Six checks to run on any stub
- Match the pay period dates to the days you worked and the pay date to your deposit.
- Multiply each hours line by its rate and add the lines to confirm gross pay.
- Confirm overtime hours are paid at the overtime rate, not the regular rate.
- Recompute Social Security (6.2%) and Medicare (1.45%) on taxable wages.
- Identify every other deduction and confirm you authorized it or the law requires it.
- Subtract all deductions from gross and compare the result to the deposit.
If a line does not add up, ask payroll in writing. If your state requires specific fields, the missing one is itself a problem; look up your state in the state table.
Where states add fields
States differ on what the stub must contain beyond hours and deductions. Alaska requires sick leave used and balance on the stub (8 AAC 15.160). California requires paid sick leave available either on the wage statement or in a separate writing on payday (California). Illinois requires the year-to-date totals (Illinois). New York requires the employer's address and phone number (New York). Ohio requires the amount and purpose of each addition or deduction (Ohio). Massachusetts names a pay slip, check stub or envelope with hours, rate and the amounts of deductions or increases (Massachusetts).
Paycheck calculators for each state
To see what a stub should roughly show before it arrives, use the calculator for your state, or the paycheck calculator by state hub. State pages available now:
What this page does not cover
It does not compute your tax, decide whether you are exempt from overtime, or interpret a union contract. It does not tell you what to do about a payroll dispute. It shows what a stub is made of so you can ask a precise question. For a generated or edited stub, there is no tool here: we do not build pay stub generators.
Common mix-ups
-
Often assumedSocial Security and Medicare tax are always figured on the full gross pay.
What the source saysPublication 15-B says excluded cafeteria-plan benefits in most cases are not subject to federal income tax withholding, Social Security tax or Medicare tax. A pre-tax health premium lowers the taxable base. [2]
-
Often assumedEmployers withhold the extra 0.9% Medicare tax on every paycheck.
What the source saysIRS Topic 751 says employers begin withholding Additional Medicare Tax once wages paid exceed $200,000 in a calendar year. The ordinary employee Medicare rate is 1.45% and Social Security is 6.2%. [1]
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Often assumedThe overtime line on a stub is just the regular rate for the extra hours.
What the source saysUnder 29 U.S.C. 207(a)(1), covered non-exempt employees must be paid at least one and one-half times the regular rate for hours over forty in a workweek, so the overtime line shows a higher rate. [3]
- IRS Topic No. 751: Social Security and Medicare withholding rates
- IRS Publication 15-B: Employer's Tax Guide to Fringe Benefits
- 29 U.S.C. 207: maximum hours, overtime rate
Checked against these sources on .
Frequently asked questions
What is the difference between a pay period and a pay date?
The pay period is the span of work being paid. The pay date is when the money is issued. Several states require the stub to show the period dates, the payment date or both.
What does YTD mean on a pay stub?
YTD is year to date: the running total of that line since 1 January. It lets you check gross pay, taxes and deductions across the year. Illinois requires year-to-date wages and deductions in its statutory pay stub definition.
Why is my net pay lower than my gross pay?
Net pay is gross pay minus deductions: pre-tax benefits, federal and state taxes, Social Security and Medicare, and any after-tax items such as garnishments or dues.
What are FICA taxes on my pay stub?
FICA is Social Security (6.2% for the employee) and Medicare (1.45%). Employers also withhold a 0.9% Additional Medicare Tax on wages above $200,000 in a calendar year.
Why does my overtime line show a different rate?
Covered non-exempt employees are owed at least one and one-half times the regular rate for hours over 40 in a workweek. The stub shows that higher rate and the overtime hours as a separate line.
Is an employer required to give me a pay stub?
Only if state law says so. Most states do in some form and a few do not. The table of pay stub requirements by state lists each state, the statute and the format.
Is a pay stub the same as a W-2?
No. A stub covers one pay period. A W-2 is the annual statement of wages and withholding. The final stub of the year should roughly match the W-2 totals.
What if my deposit does not match my net pay?
Check for split deposits, an off-cycle adjustment or a garnishment first. If none explain it, ask payroll in writing for a corrected statement.
Sources
Each link was opened and read on October 20, 2026 (retrieved 2026-10). Items marked with a dagger are explained after the list.
- 29 U.S.C. 207 — overtime at not less than one and one-half times the regular rate for hours over 40.
- IRS Topic 751 — Social Security 6.2% and Medicare 1.45% employee rates and the 0.9% Additional Medicare Tax threshold of $200,000.
- 26 U.S.C. 3102 — Additional Medicare Tax applies to wages over $200,000.
- IRS Publication 15-B — excluded fringe benefits are in most cases not subject to income tax withholding, Social Security or Medicare tax.
- Illinois Public Act 103-0953 — pay stub definition with year-to-date totals.
- Alaska DOLWD Wage and Hour Act pamphlet — 8 AAC 15.160(h) statement contents, including sick leave used and balance.
- Cal. Lab. Code 246 (California.Public.Law copy) † — paid sick leave available shown on the wage statement or in a separate writing.
† The official current text could not be opened by our automated check, or the link is a mirror, an open copy or a secondary summary of it. Use it as a pointer and read the official text before relying on it.
Not legal advice
This page summarises published statutes and agency guidance as read on October 20, 2026. It does not decide whether a rule covers your job, your employer or your pay arrangement, and laws change. For a dispute, check the current text and contact your state labor department or a licensed attorney.