How to Read a Paystub
Every line on a pay stub explained: gross pay, taxes, deductions, net pay, and those year-to-date columns.
- ✓Gross pay. Your total earnings before anything is taken out — the biggest number on the stub.
- ✓Taxes. Federal income tax, Social Security, Medicare, and (in most states) state income tax.
- ✓Net pay. What actually lands in your bank account after taxes and deductions.
- ✓YTD columns. Running totals for the year — what lenders and landlords use to gauge annual income.
COMPANY NAME
(555) 555-5555
COMPANY ADDRESS
CITY, STATE ZIP
Earnings Statement
EMPLOYEE NAME
(555) 555-5555
EMPLOYEE ADDRESS
CITY, STATE ZIP
and InformationThis PeriodYear To Date
A pay stub packs a lot of numbers into a small space, but once you know what each section means it's easy to read. The core idea is simple: your gross pay minus taxes and deductions equals your net (take-home) pay.
At the top you'll find your employer and personal details plus the pay period and pay date. The earnings section lists your wages; the deductions section lists taxes and any other withholdings. Most stubs show two columns — the current pay period and the year-to-date (YTD) totals, which add up everything you've earned and paid so far this year.
Frequently asked questions
- What does YTD mean on a pay stub?
- Year-to-date — the total for that line (earnings, a specific tax, or net pay) from January 1 through the current pay date.
- Why is my net pay so much lower than my gross?
- Because taxes (federal, Social Security, Medicare, and often state) and any benefit deductions come out of your gross pay before you're paid.
- What's the difference between a pay period and a pay date?
- The pay period is the range of days you worked; the pay date is the day you actually get paid for that period.
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