How to read a paystub
How do I read my paystub?
A paystub shows three things: what you earned, what was taken out, and what landed in your account.
Key takeaways
- Gross pay = what you earned this period
- Pre-tax deductions reduce taxable income
- Withholding ≠ taxes you owe at year-end
- Net pay is what hits your account
TL;DR
Three blocks: earnings, deductions, net pay. Once you know what each line is for, the math always reconciles.
What each section means
- Earnings: gross pay, broken into regular hours, overtime, bonuses, paid time off.
- Pre-tax deductions: 401(k), HSA, health premiums — they lower the taxable income on the next line.
- Taxes withheld: federal income tax, Social Security (6.2%), Medicare (1.45%), state and local where applicable.
- Post-tax deductions: Roth 401(k), garnishments, charitable contributions.
- Net pay: what actually deposits.
Watch-outs
If your withholding is way off, fix your W-4 — don't wait for an April surprise. A wildly different paystub from one period to the next usually means a bonus, an unpaid day, or a benefits change.
Related
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Promised "guaranteed" returns, urgency, unregistered sellers, and pressure to keep it secret are the four classic red flags of investment fraud.
Wealthypedia is educational. This isn't financial, tax, legal, or investment advice. Last reviewed —.