How to Read Your Paycheck: What’s on Your Pay Stub

The first thing you should do to understand your paycheck is to understand the basic information that it provides. This includes the deductions for various categories of taxes, insurance, and other items.

Here’s a simple breakdown of most pay stub deductions and what they are.

Your pay stub generally lists these items:

Your taxable income or earnings

Your gross pay, that is, the total amount of money that you earned on a specific paycheck.

Your net pay, that is, the amount of money that you take home or is deposited directly into your bank account.

Withholding taxes (including federal taxes, state taxes, Social Security, Medicare)

Other deductions for things like childcare, retirement programs, and paid time off/vacation.

Learn more: How to Read Your Paycheck: What’s on Your Pay Stub