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How to Read Your Pay Stub: Line-by-Line Guide
Learn how to read every line on your pay stub. Decode abbreviations like FIT, FICA, OASDI, and understand gross pay, deductions, and net pay.
Best Paystub Generator creates simulated earnings documents for lawful personal record-keeping. It does not verify employment or income and does not replace records issued by an employer or payroll provider.
Your pay stub contains crucial information about your earnings and deductions. Understanding each line helps you catch errors, plan your budget, and prepare for tax season.
The 5 Sections of Every Pay Stub
1. Personal Information
- Employee name and address
- Last 4 of SSN or employee ID
- Department and job title
2. Pay Period Information
- Pay period start date — first day of the period
- Pay period end date — last day of the period
- Pay date — when you actually receive payment
- Check number or direct deposit reference
3. Earnings
| Code | Meaning | Example |
|---|---|---|
| REG | Regular hours/pay | 80 hrs × $25 = $2,000 |
| OT | Overtime (1.5×) | 10 hrs × $37.50 = $375 |
| HOL | Holiday pay | 8 hrs × $50 = $400 |
| PTO | Paid time off | 8 hrs × $25 = $200 |
| BONUS | Bonus payment | Flat $500 |
| COMM | Commission | $1,200 |
4. Deductions
Pre-Tax Deductions
- 401K — retirement contribution
- MED — medical insurance premium
- DEN — dental insurance premium
- VIS — vision insurance premium
- HSA — Health Savings Account contribution
- FSA — Flexible Spending Account
Tax Deductions
- FIT / FWT — Federal Income Tax
- SIT / SWT — State Income Tax
- OASDI — Social Security (6.2%)
- MED TAX / HI — Medicare (1.45%)
- SDI — State Disability Insurance (California, etc.)
- SUI — State Unemployment Insurance
Post-Tax Deductions
- ROTH — Roth 401(k) contribution
- LIFE — life insurance premium
- GARN — wage garnishment
- UNION — union dues
5. Summary
- Gross Pay — total earnings before deductions
- Total Deductions — sum of all deductions
- Net Pay — your take-home amount (gross − deductions)
- YTD columns — cumulative totals for the year
Common Abbreviations Decoded
| Abbreviation | Full Name |
|---|---|
| FICA | Federal Insurance Contributions Act |
| OASDI | Old Age, Survivors & Disability Insurance |
| FWT | Federal Withholding Tax |
| SWT | State Withholding Tax |
| SDI | State Disability Insurance |
| PFL | Paid Family Leave |
| LTD | Long-Term Disability |
| STD | Short-Term Disability |
| FSA | Flexible Spending Account |
| HSA | Health Savings Account |
| EE | Employee portion |
| ER | Employer portion |
For a complete list, visit our paystub codes guide.
Red Flags to Watch For
- Incorrect hours — compare to your own time records
- Wrong tax rate — especially after a raise or state change
- Missing overtime — should be 1.5× for hours over 40/week
- Benefits not deducted — could affect your coverage
- YTD doesn't add up — compare to previous stub + current period
Frequently Asked Questions
What's the difference between gross and net pay? Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after all taxes and deductions are subtracted.
Why does my first paycheck look different? Your first paycheck may cover a partial pay period, have different tax estimates, or include sign-on bonuses that affect withholding rates.
Should my pay stub YTD match my W-2? Yes, your final pay stub's YTD totals for earnings and tax withholdings should closely match the amounts on your annual W-2 form.
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