Your paystub is more than a receipt for your paycheck. It's a detailed record of your earnings, taxes, and deductions that you'll need for everything from filing taxes to applying for a loan. Understanding each section helps you catch errors, plan your finances, and know exactly where your money is going.
The Main Sections of a Paystub
Most paystubs are divided into a few key areas: employee and employer information, earnings, taxes, deductions, and totals. The layout varies by employer or payroll provider, but the core information is the same. Each section builds on the last — your gross pay minus taxes and deductions equals your net pay, and year-to-date totals track everything across the calendar year.
Let's walk through each section so you know exactly what you're looking at.
Employee and Employer Information
The top of your paystub identifies who was paid, by whom, and for what time period. You'll typically see your name, address, and the last four digits of your Social Security number, along with your employer's name and address. The pay period start date, end date, and payment date are also listed here.
Double-check this section every time. An incorrect address or wrong pay period can cause problems with income verification down the line.
Gross Pay
Gross pay is your total earnings before anything is deducted. This is the starting point for everything else on your paystub.
For hourly workers, gross pay equals hours worked multiplied by your hourly rate, plus any overtime. For salaried workers, it's your annual salary divided by the number of pay periods in the year. If you earn $25 per hour and worked 80 hours in a biweekly pay period, your gross pay is $2,000.
Overtime is typically calculated at 1.5 times your regular rate for any hours worked over 40 in a single week. So if you worked 45 hours in one week at $25 per hour, those 5 overtime hours would be paid at $37.50 per hour.
Tax Withholding
Tax withholding is usually the largest chunk taken from your gross pay. Your employer withholds taxes on your behalf and sends them to the appropriate federal, state, and local agencies.
Federal Income Tax
Federal income tax is withheld based on the information you provided on your W-4 form and the IRS tax tables. The amount depends on your filing status, income level, and any adjustments or credits you claimed. If your withholding seems too high or too low, you can submit an updated W-4 to your employer.
State Income Tax
State income tax rates and rules vary significantly. Some states have a flat rate, others use progressive brackets, and nine states have no income tax at all. If you live in one state and work in another, your paystub may show withholding for both.
Social Security (FICA)
Social Security tax is 6.2% of your gross pay, up to the annual wage base limit of $176,100 in 2026. Once your year-to-date earnings hit that cap, Social Security withholding stops for the rest of the year. Your employer pays a matching 6.2%.
Medicare
Medicare tax is 1.45% of all gross pay with no wage base limit. An additional 0.9% applies to earnings over $200,000 in a calendar year. Your employer matches the base 1.45% rate but does not pay the additional 0.9%.
Tax Withholding at a Glance
| Tax | Rate | Wage Base / Limit | Notes |
|---|---|---|---|
| Federal Income Tax | Varies | None | Based on W-4 and IRS tax tables |
| State Income Tax | Varies | Varies | 9 states have no income tax |
| Social Security | 6.2% | $176,100 | Employer matches 6.2% |
| Medicare | 1.45% | None | Employer matches 1.45% |
| Additional Medicare | 0.9% | $200,000+ | Employee only, no employer match |
Pre-Tax Deductions
Pre-tax deductions are taken out of your pay before taxes are calculated. This lowers your taxable income, which means you pay less in federal and state income tax. Common pre-tax deductions include:
- 401(k) or 403(b) contributions — Retirement savings deducted before taxes
- Health insurance premiums — Medical, dental, and vision coverage
- HSA or FSA contributions — Tax-advantaged accounts for healthcare or dependent care expenses
- Commuter benefits — Pre-tax transit or parking expenses
If you contribute $200 per pay period to a 401(k), that $200 is subtracted from your gross pay before your taxes are calculated. You won't pay income tax on that money until you withdraw it in retirement.
Post-Tax Deductions
Post-tax deductions are taken out after taxes have been calculated. They don't reduce your taxable income. Common post-tax deductions include:
- Roth 401(k) contributions — Retirement savings made with after-tax dollars
- Life insurance premiums — Employer-sponsored coverage above $50,000
- Wage garnishments — Court-ordered deductions for debts or child support
- Union dues — Membership fees for union workers
These amounts reduce your take-home pay but have no effect on the taxes you owe.
Net Pay
Net pay is the bottom line — the amount that actually hits your bank account. The formula is straightforward: gross pay minus taxes, minus pre-tax deductions, minus post-tax deductions equals net pay. This is your take-home pay.
It's normal for net pay to be significantly less than gross pay. Depending on your tax bracket, filing status, and deductions, your net pay could be 60% to 75% of your gross pay. If the gap seems larger than expected, review your withholding and deductions to make sure everything is correct.
Year-to-Date (YTD) Totals
Most paystubs include year-to-date totals — running sums of your earnings, taxes, and deductions accumulated since January 1. YTD totals help you track your total compensation for the year, monitor how much you've paid in taxes, and compare against your W-2 when it arrives after year end.
Your final paystub of the year should closely match your W-2. If the numbers don't align, contact your employer or payroll department to resolve the discrepancy before filing your taxes.
Common Paystub Mistakes to Watch For
Errors on paystubs are more common than you'd expect. Review yours every pay period and watch for:
- Incorrect hours or pay rate — Especially if you worked overtime or received a raise
- Wrong filing status — An outdated W-4 can lead to over- or under-withholding
- Missing or incorrect deductions — Changes to benefits enrollment that weren't applied
- State tax withholding for the wrong state — Common if you recently moved or work remotely
- YTD totals that don't add up — Current period amounts should add cleanly to prior YTD totals
Catching mistakes early is much easier than correcting them at tax time. If something looks off, raise it with your employer or HR department right away.
How to Create a Professional Paystub
If you're self-employed or your employer doesn't provide detailed paystubs, you can generate one with Paystub Studio. Enter your earnings, deductions, and pay period details, and your federal and state taxes are calculated automatically.
Keep your paystubs organized throughout the year. You'll need them for tax season, rental applications, loan approvals, and other situations that require proof of income.