How to Read Your Paycheck Stub

Decode every line on your US pay stub. Understand gross pay, federal withholding, FICA, state tax, pre-tax deductions, and net pay.

Common Pay Stub Line Items

• Gross Pay: Your total earnings before any deductions.
• Federal Withholding: Income tax withheld based on your W-4.
• Social Security (OASDI): 6.2% of gross pay (up to $176,100).
• Medicare: 1.45% of gross pay (plus 0.9% above $200,000).
• State Tax: Varies by state — some have none.
• 401(k)/403(b): Pre-tax retirement contributions.
• Health Insurance: Your share of employer-sponsored health premiums.
• Net Pay: What you actually take home after all deductions.