A pay stub (also called a pay statement or earnings statement) shows how your pay for a period goes from the amount you earned to the amount that reaches your bank account. This guide explains each part, with the official 2026 rates for the taxes taken out. General information only, not tax or legal advice. Facts checked October 31, 2026.
An example pay stub
| Line | This period | What it means |
|---|---|---|
| Gross pay | $2,500.00 | Everything you earned before anything is taken out: hours × rate, salary, overtime, tips reported, bonuses. |
| 401(k), pre-tax | −$125.00 | Your retirement savings. It lowers the pay that federal income tax is figured on. |
| Federal income tax | −$201.15 | Withheld based on your Form W-4 and the IRS withholding tables. Here: the 2026 brackets and standard deduction applied to the yearly pay after the 401(k), divided by 26. |
| Social Security (OASDI) | −$155.00 | 6.2% of your pay, up to $184,500 of wages in 2026. |
| Medicare | −$36.25 | 1.45% of all your pay, plus 0.9% on wages over $200,000 in the year. |
| Net pay | $1,982.60 | What is deposited or paid to you. |
The parts of a pay stub
- Pay period and pay date: the days the pay covers and the day you are paid.
- Hours and rate: regular hours, overtime hours (usually at 1.5 times your rate after 40 hours in a week), and paid time off.
- Gross pay: total earnings before deductions.
- Taxes withheld: federal income tax, Social Security, Medicare, and where they apply, state and local income tax and some state programs such as disability or paid family leave.
- Pre-tax deductions: money taken out before income tax, such as a traditional 401(k) or 403(b), health, dental and vision premiums under a cafeteria plan, an HSA or a flexible spending account. Health premiums and HSA or FSA amounts through such a plan usually also lower the pay that Social Security and Medicare are figured on; 401(k) contributions do not.
- After-tax deductions: Roth 401(k) contributions, some insurance, union dues, or court-ordered garnishments such as child support.
- Net pay: gross pay minus all taxes and deductions.
- Year to date (YTD): totals since January 1. They help you check that Social Security stops at the wage base and plan for your tax return.
- Employer amounts: some stubs also show what your employer pays, such as its share of Social Security and Medicare or a 401(k) match. These are not taken from your pay.
Social Security and Medicare in 2026
You and your employer each pay 6.2% for Social Security on wages up to $184,500 in 2026, and 1.45% for Medicare on all wages (SSA). Your employer must also withhold an extra 0.9% Medicare tax on your wages over $200,000 in the year (IRS Topic 751).
What to check on each stub
- The hours and rate match your own records, including overtime.
- Your filing status and W-4 choices look right; a big change in federal withholding can mean an error.
- Benefit deductions match what you chose at enrollment.
- Social Security stops once your YTD wages reach $184,500, and not before.
- The last stub of the year matches your Form W-2, which your employer must send by early February.
Does my employer have to give me a pay stub?
Federal law requires employers to keep accurate records of hours worked and wages paid, but the Fair Labor Standards Act does not require them to give employees pay stubs (U.S. Department of Labor). Many states do require a pay statement; your state labor department can tell you the rules where you work.
Frequently asked questions
Why is my net pay so much lower than my gross pay?
Taxes and deductions come out first: federal income tax, Social Security (6.2%), Medicare (1.45%), any state and local taxes, and benefits or retirement savings you chose.
What does OASDI mean on my pay stub?
Old-Age, Survivors, and Disability Insurance, the official name of Social Security. It is 6.2% of your wages up to $184,500 in 2026.
How can I change my federal withholding?
Give your employer a new Form W-4. The IRS Tax Withholding Estimator helps you choose the right entries.
What is YTD on a pay stub?
Year to date: the total of each line from January 1 through this pay date.