How to read a pay stub
A pay stub shows gross pay at the top, what you earned before anything comes out, and net pay at the bottom, what reaches your bank. The lines between are taxes withheld, payroll taxes for the national retirement and health programs, and deductions such as health premiums and retirement contributions. Check every stub for hours, rate and year-to-date totals.
About 15 minutes to learnEveryday skill
Mark it once you can do it without this page open.
How to do it
- Find the pay period dates and the pay date, and check the hours or salary match what you worked.
- Read gross pay: your hourly rate times hours, plus any overtime, or your salary for the period.
- Find the tax lines: federal income tax, state and local income tax where they apply, and the payroll taxes that fund national retirement and health programs, often labeled FICA.
- Find the pre-tax deductions, such as retirement contributions and health, dental or vision premiums, which lower your taxable pay.
- Find any after-tax deductions, such as some insurance or union dues.
- Read net pay and confirm it matches the deposit in your bank account.
- Check the year-to-date column to see running totals for pay and each tax.
- Keep your stubs until you have matched them to your year-end tax form.
Common mistakes
- Budgeting from gross pay instead of net pay.
- Never checking hours or overtime and missing a payroll error.
- Not noticing that a benefit you signed up for is missing, or one you declined is being taken.
- Throwing stubs away before the year-end tax form arrives.
Quick self-check
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Teach this to someone
A one-page sheet for showing a friend, a roommate or a kid: what to say, what to show, and one question to check it landed.
Teach: How to read a pay stub
What to say
A pay stub shows gross pay at the top, what you earned before anything comes out, and net pay at the bottom, what reaches your bank. The lines between are taxes withheld, payroll taxes for the national retirement and health programs, and deductions such as health premiums and retirement contributions. Check every stub for hours, rate and year-to-date totals.
What to show, in order
- Find the pay period dates and the pay date, and check the hours or salary match what you worked.
- Read gross pay: your hourly rate times hours, plus any overtime, or your salary for the period.
- Find the tax lines: federal income tax, state and local income tax where they apply, and the payroll taxes that fund national retirement and health programs, often labeled FICA.
- Find the pre-tax deductions, such as retirement contributions and health, dental or vision premiums, which lower your taxable pay.
- Find any after-tax deductions, such as some insurance or union dues.
- Read net pay and confirm it matches the deposit in your bank account.
- Check the year-to-date column to see running totals for pay and each tax.
- Keep your stubs until you have matched them to your year-end tax form.
The check question
Ask: Which number actually reaches your bank account?
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- Every skill in Money and Paperwork
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Last reviewed . First published .