Pay Stub Example Guide to Reading and Reconciling Paychecks

If you’re looking for a pay stub example, start here.

Below you’ll find:

An annotated walkthrough of a sample pay stub
Step-by-step instructions to read yours
Realistic scenarios for hourly, salaried, contractor, and tipped/commission workers
Simple gross-to-net formulas
Compliance pointers
A quick glossary

A pay stub (also called a pay statement or paycheck stub) shows what you earned this period, what was withheld, and your year-to-date (YTD) totals.

What is a pay stub? (and why it matters)

If you need a quick definition before reviewing your own, here it is. A pay stub is the itemized record of your earnings and deductions for a specific pay period.

It typically accompanies a direct deposit or paper paycheck. It lists gross pay, taxes (Federal, State, FICA Social Security, Medicare), benefit deductions, and net pay.

Lenders and landlords often request a sample pay stub as proof of income. Employees use it to verify accuracy and spot errors.

Employers rely on pay stubs for compliance and transparency under federal and state labor laws. The Fair Labor Standards Act (FLSA) requires accurate pay records.

Many states mandate that employers provide pay statements with specific fields. The takeaway: your pay stub is both a math report and a compliance document—know what’s on it and how to check it.

What a pay stub includes at a glance

If you’re scanning a paycheck stub example, look first for who was paid, who paid them, the time covered, and how gross pay was reduced to net pay.

Most stubs also show YTD totals. Use these to confirm cumulative deductions and taxes across the year and catch errors early.

Common components you’ll see:

Employer name and address; employee name, last four of SSN/ID, and address
Pay period start/end dates and pay date; pay frequency (weekly, biweekly, semimonthly)
Earnings: regular hours and rate, overtime, bonuses, commissions, tips
Taxes: Federal income tax (FIT), State income tax (SIT if applicable), FICA Social Security (SS or OASDI), Medicare, and local/city taxes
Deductions: pre-tax (401(k), HSA, health/dental/vision) and post-tax (benefits, union dues)
Other withholdings: garnishments, wage assignments, levies
Net pay (this period); YTD totals for earnings, taxes, and deductions

Knowing where each item sits helps you read and reconcile the stub quickly.

Next, walk through an annotated pay stub example to see how it all fits.

Pay stub example (annotated walkthrough)

If you want a single pay stub example to mirror, use this annotated walkthrough. We’ll use realistic numbers and call out how overtime, pre-tax benefits, and taxes flow into net pay.

Assume a biweekly pay period and a U.S. employee with federal and state withholding.

Header fields: employer, employee, pay period, pay date

Start by confirming identity and timing. You’ll see the employer’s legal name and address (not just a brand name).

You’ll also see the employee’s name and unique ID or last four digits of SSN for verification. The pay period shows the start and end dates the earnings cover, and the pay date is when funds are issued to your bank.

Example: Employer “Pine & Co. LLC, 100 Main St, City, ST,” Employee “Jordan M. Rivera, Emp ID 5472.” Pay Period: 04/01–04/15; Pay Date: 04/19; Pay Frequency: Biweekly.

The takeaway: these fields verify that the right person is paid for the right window and that YTD totals advance on schedule.

Earnings: hours, rate, overtime, bonuses, commissions

The earnings block calculates gross pay before any deductions. For hourly workers, use Regular Hours x Regular Rate plus Overtime Hours x Overtime Rate.

Under the FLSA, overtime is typically 1.5x after 40 hours in a workweek for nonexempt roles. Salaried employees show a fixed amount per period. Bonuses and commissions appear as separate earning lines.

Example: Regular 80.0 hrs x $22.00 = $1,760. Overtime 6.0 hrs x $33.00 (1.5x) = $198. Bonus = $150. Gross earnings this period = $2,108.

If tips/commissions apply, you might see “Tips (cash-reported)” or “Commission” lines. These are taxable unless specifically excluded.

The takeaway: confirm hours, rates, and any special earnings before reviewing taxes.

Taxes and withholdings: Federal, State, FICA Social Security, Medicare, local

Payroll systems compute taxes from taxable wages after pre-tax deductions are applied. Common lines include:

Federal income tax (FIT)
State income tax (SIT)
FICA Social Security (often “SS” or “OASDI”)
Medicare (“MED”)
Local/city taxes

Social Security is generally 6.2% up to the annual wage base. Medicare is 1.45% plus an additional 0.9% for high earners—check the latest IRS thresholds (see IRS Pub. 15-T).

Example (illustrative only): Taxable wages after pre-tax deductions = $2,008. FIT = $185.00; State = $70.00; Social Security = $124.50 (6.2% of $2,008, capped by the annual base); Medicare = $29.12 (1.45% of $2,008); Local = $10.00.

The takeaway: compare each tax line to taxable wages, not gross wages. Remember rates vary with your Form W‑4 elections and state/local rules.

Deductions: pre-tax (401(k), HSA, insurance) vs post-tax

Pre-tax deductions reduce taxable wages before income tax and often before FICA, depending on the benefit plan.

Typical pre-tax items include:

401(k) deferrals
HSA contributions
Section 125 cafeteria plan premiums (health/dental/vision)

Post-tax deductions don’t reduce taxable wages. These include after-tax benefits, charitable deductions, or certain union dues.

Example: 401(k) pre-tax 4% of gross $2,108 = $84.32; Health premium pre-tax = $15.68; Taxable wages = $2,108 − $84.32 − $15.68 = $2,008. If you also have after-tax life insurance $6.00, it comes out after taxes are calculated.

The takeaway: the order matters—pre-tax benefits lower your tax base; post-tax does not.

Garnishments and other withholdings

Court-ordered withholdings (child support, tax levies, creditor garnishments) appear as separate lines and follow federal and state limits.

Employers must comply with withholding orders and remit payments to the correct agency on schedule. Not all income types are treated the same for garnishment—verify the order details and how they apply to your pay.

Example: Child Support Garnishment = $85.00 this period; YTD $510.00. You should see the description, amount, and sometimes a case/reference number.

The takeaway: garnishments are not optional. If you see an unexpected garnishment, contact HR/payroll immediately and provide any documentation you have.

Net pay and YTD totals: how to reconcile the math

Net pay is what hits your bank. Gross Earnings − Pre‑Tax Deductions − Taxes − Post‑Tax Deductions − Garnishments.

YTD totals show cumulative amounts for the calendar year across earnings, taxes, and deductions. Reconciling both helps you catch miscalculations early and keep an audit trail.

Example: Gross $2,108 − Pre‑Tax $100.00 = Taxable $2,008. Taxes $418.62 total − Post‑Tax $6.00 − Garnishment $85.00 = Net $1,498.38.

Quick check: Prior YTD net $8,921.14 + $1,498.38 should equal the new YTD net.

The takeaway: if period math or YTD roll-forward doesn’t tie, flag it.

How to read a pay stub in 6 steps

Use this six-part checklist to audit any sample pay stub quickly. Each step takes less than a minute once you know where to look.

1) Confirm identity and pay period

Start by matching your name, employee ID, and the last four of your SSN. Confirm the employer’s legal name along with the pay period and pay date to ensure you’re reviewing the right cycle.

Mistakes here cascade into everything else. If the pay frequency looks off (e.g., marked “semimonthly” but dates span 14 vs. 15/16 days), ask payroll to clarify.

The takeaway: accuracy begins with the header—no math until this matches.

2) Verify hours/earnings (including OT/bonuses)

Compare regular and overtime hours to your timecard or schedule. Verify rates match your offer letter or HR system.

Ensure overtime is calculated correctly. It’s typically 1.5x for eligible nonexempt hours beyond 40 in a workweek under federal law. Your state may be stricter.

Check special earnings like bonuses, shift differentials, tips, or commissions. These should be itemized and taxed.

The takeaway: earnings lines should explain every dollar of gross pay.

3) Check pre-tax deductions and taxable wages

Identify pre-tax deductions such as 401(k), HSA, FSA, and pre-tax medical premiums. Subtract these from gross to arrive at taxable wages.

This is the number income taxes are based on. If taxable wages equal gross, you likely had no pre-tax items this period.

The takeaway: pre-tax savings lower current taxes; confirm they’re applied before taxes.

4) Review taxes (FIT, SIT, FICA SS/Medicare)

Confirm federal income tax roughly aligns with your Form W-4 elections and pay frequency. Social Security should be 6.2% of Social Security taxable wages until reaching the annual wage base.

Medicare should be 1.45% of Medicare taxable wages. High earners may owe an extra 0.9%—check the latest IRS Pub. 15-T.

If you work in a state or city with income tax, you’ll see SIT and possibly local taxes. The takeaway: compare tax lines to the correct taxable wage base and your filing elections, not just gross pay.

5) Confirm post-tax deductions and garnishments

Scan for after-tax items like life insurance, charity, or union dues and ensure they’re expected. Look for any garnishments or levies and match amounts to official notices.

If something appears you didn’t authorize and there’s no court order on file, contact payroll immediately.

The takeaway: after-tax and garnishment lines should never be surprises.

6) Reconcile net pay and YTD

Do a quick gross-to-net math check: Gross − Pre‑Tax − Taxes − Post‑Tax − Garnishments = Net. Then verify each YTD bucket advances by exactly this period’s amounts.

If YTD totals don’t roll forward correctly, save the stub and send a written note to payroll outlining the discrepancy. The takeaway: keeping a simple audit trail speeds corrections.

Examples by worker type and pay schedule

Seeing multiple paycheck stub examples helps you map your situation. Use these realistic snapshots to check calculations and line placements.

Hourly example with overtime (weekly)

Scenario: Nonexempt, $20.00/hr, 46 hours in a week (40 regular, 6 overtime)
Gross: (40 x $20) + (6 x $30) = $800 + $180 = $980
Pre‑tax: 401(k) 5% = $49
Taxable wages: $980 − $49 = $931
Taxes: FIT $70; SIT $30; Social Security $57.72 (6.2% of $931); Medicare $13.50 (1.45%); Local $5
Post‑tax: Union dues $8
Net pay: $980 − $49 − ($70 + $30 + $57.72 + $13.50 + $5) − $8 = $746.78

Takeaway: verify the overtime rate (1.5x) and that pre-tax retirement reduces taxable wages.

Salaried exempt example (semimonthly)

Scenario: Exempt salary $60,000/year; semimonthly gross = $2,500 per check
Pre‑tax: Health $110; Dental $12; 401(k) 6% = $150
Taxable wages: $2,500 − $272 = $2,228
Taxes: FIT $210; SIT $95; SS $138.14; Medicare $32.31; Local $0
Post‑tax: None
Net pay: $2,500 − $272 − ($210 + $95 + $138.14 + $32.31) = $1,752.55

Takeaway: semimonthly checks are steady; pre-tax benefits meaningfully change taxable wages and withholding.

1099 contractor example (invoice vs pay stub)

Independent contractors typically do not receive a traditional pay stub. Payers do not withhold taxes for 1099 contractors.

Instead, contractors issue invoices and get gross payments. Taxes are handled via estimated payments and shown later on Form 1099‑NEC.

A simple payment statement might list:

Client
Invoice #
Service dates
Gross amount
Adjustments (if any)
Net paid

Takeaway: if you’re a contractor, a “pay stub generator” isn’t a substitute for real payroll. Provide invoices, contracts, bank statements, and 1099s as proof of income.

Tipped/commission example (biweekly)

Scenario: Hourly $14/hr, 75 hours, reported tips $320 this period
Gross earnings lines: Regular (75 x $14) = $1,050; Tips (reported) = $320; Gross = $1,370
Pre‑tax: Transit benefit $30
Taxable wages: $1,370 − $30 = $1,340
Taxes: FIT $105; SIT $45; SS $83.08; Medicare $19.43; Local $6
Post‑tax: None
Net pay: $1,370 − $30 − ($105 + $45 + $83.08 + $19.43 + $6) = $1,081.49

Takeaway: reported tips are taxable; ensure your employer withholds FICA on tips and tracks YTD.

Calculations you can check (gross → net)

You don’t need a calculator tool to spot most errors. These quick formulas catch 90% of issues.

Overtime, bonuses, and taxable wages

Overtime: OT hours x (1.5 x regular rate) for eligible nonexempt hours beyond 40 in a workweek under federal law; some states require daily OT—check state rules.
Gross pay: Regular earnings + Overtime + Bonuses + Commissions + Tips (taxable).
Taxable wages: Gross − Pre‑Tax Deductions (401(k), HSA, pre-tax medical, certain transit).
Income tax estimate: Use IRS Pub. 15-T and your W‑4 elections; expect variation by bracket and credits.
Quick reasonableness test: Social Security ≈ 6.2% of SS‑taxable wages; Medicare ≈ 1.45% of MED‑taxable wages (check latest caps/thresholds).

The takeaway: confirm add-ons (OT/bonus) boosted gross. Then ensure pre-tax items reduced the taxable base before income tax.

Pre-tax vs post-tax: why your net changes

Pre-tax deductions reduce the base for income taxes and often FICA, which amplifies take-home savings. Post-tax deductions come out after taxes and won’t change withholding amounts.

If your net pay drops more than expected, check whether a new benefit started as post-tax or if a pre-tax election changed. A common pitfall is mistaking after-tax deductions for pre-tax benefits; your net will be lower if items are applied after taxes.

The takeaway: the deduction’s tax status drives both withholding and net pay effects.

FICA/Medicare basics and annual caps (check latest)

Social Security tax is generally 6.2% on wages up to the annual wage base. Medicare is 1.45% with no base limit, plus an additional 0.9% on wages over a threshold depending on filing status.

Employers match these amounts on their side (not shown on your pay stub). Because caps and thresholds change, always check the latest IRS guidance (IRS Pub. 15 and 15‑T).

If your SS tax stops late in the year, it may be because you’ve reached the wage base. The takeaway: sudden tax changes late in the year can be normal when you hit statutory limits.

Compliance: what your state/employer must include

States set their own pay statement rules on top of federal recordkeeping requirements. Some require specific fields, formats, and delivery methods; others only require access to pay information.

Common required fields across states

While exact rules vary, many states expect:

Employer and employee identifying info
Pay period start/end and pay date; pay frequency
Hours worked (regular/OT), rates of pay, and total earnings
Itemized deductions and withholdings (FIT, SIT, FICA, Medicare, local)
Net pay and YTD totals for earnings and deductions
Accrued paid sick leave or PTO balances in some jurisdictions

Check your state’s labor department for precise requirements and penalties for noncompliance.

Digital vs paper delivery and access/retention

Some states allow electronic pay statements if employees can readily access and print them. Others require paper unless an employee opts in to e-delivery.

Employers under the FLSA must keep payroll records generally for at least three years. Many retain them longer for audit readiness.

Employees should keep pay stubs until they reconcile their W‑2 and file taxes, and longer if applying for loans or disputing withholdings. A practical approach: keep digital copies for at least one year or through the tax statute of limitations in your state.

Where to find official rules (state labor dept., DOL, IRS)

IRS: Publication 15 and 15‑T for federal withholding methods and FICA rules (irs.gov)
U.S. Department of Labor: FLSA recordkeeping and overtime rules (dol.gov)
State labor departments: pay statement requirements, local taxes, and paid leave rules (e.g., California DLSE, New York DOL, Texas Workforce Commission)
Local tax authorities: city/county income or occupational taxes (e.g., NYC, Philadelphia)

Always check the latest guidance—rates and thresholds change annually.

Using pay stubs as proof of income: do’s and don’ts

Pay stubs are widely requested for rentals, loans, and assistance programs. Provide recent statements and make sure the story they tell matches deposits and W‑2s.

What lenders/landlords typically require

Two to three most recent pay stubs showing YTD totals and consistent employer details
Prior year W‑2 (or 1099 if self‑employed) and recent bank statements showing matching deposits
Employment verification letter for some mortgages or large leases
For variable income (tips/commissions), more documentation may be required to show stability

The takeaway: completeness and consistency across documents matter more than any single stub.

How to verify authenticity (red flags)

Math errors: YTD doesn’t equal prior YTD + current period; SS/Medicare rates not aligned with taxable wages
Formatting red flags: mismatched fonts, spacing, or non‑standard employer names/addresses/EIN formats
Deposit mismatch: net pay on stub doesn’t match bank deposit amounts or dates
Impossible figures: unrealistically high YTD early in the year; round numbers for taxes every period
No contactable employer: unverifiable HR/payroll contact or domain

For landlords/lenders, cross-check with W‑2s/1099s and bank statements. If needed, confirm employment with the employer.

Is it legal to make your own pay stub?

Creating a “pay stub” that doesn’t reflect real payroll is fraud. If you are an employer, you can generate pay statements through a compliant payroll system that withholds and remits taxes.

If you’re an employee, self-generating a pay stub for proof of income is generally not acceptable to lenders. Use your actual employer‑issued stubs.

For 1099 contractors, provide invoices, contracts, bank statements, and Form 1099‑NEC instead of a fabricated stub.

The takeaway: only use authentic, employer‑issued pay statements for verification.

Pay stub abbreviations glossary (quick reference)

FIT: Federal Income Tax
SIT: State Income Tax
SS or OASDI: Social Security tax (Old‑Age, Survivors, and Disability Insurance)
MED or Medicare: Medicare tax
SDI: State Disability Insurance (e.g., CA)
SUI or SUTA: State Unemployment Insurance/Tax (employer‑paid, may appear as info)
FUTA: Federal Unemployment Tax (employer‑paid, sometimes informational)
L&I or WC: Workers’ Compensation or Labor & Industries (employer‑paid; info line)
LST/EIT/City: Local Services Tax/Earned Income Tax/City withholding
401(k)/403(b)/457: Retirement plan contributions (often pre‑tax)
HSA/FSA: Health/Dependent care accounts (pre‑tax)
PTO/Sick: Accrued paid time off balances

If you see an abbreviation you don’t recognize, ask payroll for the plan or tax description.

FAQs

What does YTD mean on a pay stub?

YTD stands for year-to-date and shows the cumulative total for a category from January 1 through the current pay date.

You’ll see YTD for earnings, taxes, and deductions. These should equal the sum of all prior periods plus the current one.

YTD is essential for verifying annual limits (like the Social Security wage base or 401(k) contribution caps). If a YTD number isn’t moving as expected, it signals a potential posting or setup issue.

The takeaway: use YTD to validate cumulative accuracy and statutory caps.

Why is my net pay lower than expected?

Common reasons include a new or changed deduction (benefit start, rate increase), pre-tax election changes, or increased withholding due to W‑4 updates.

Garnishments can lower net pay. So can a bonus that bumped you into higher withholding for the period.

Local taxes or new state withholding after a move also affect net pay. Verify whether a deduction is pre-tax or post-tax, because that changes both withholding and net pay.

If the drop is sudden and unexplained, ask payroll for the change log.

How often should I get a pay stub and how long should I keep it?

You should receive a pay statement each pay period. Format depends on your state and employer (paper or electronic).

Keep stubs through W‑2 reconciliation and tax filing. Many employees keep digital copies for at least one year or until the statute of limitations on their return.

If you’re applying for credit or a lease, retain the last two to three stubs for easy access. Employers should follow federal and state recordkeeping rules (often three years or more).

What should I do if my pay stub is wrong?

Document the issue with specifics (pay period, line items, amounts) and contact payroll or HR in writing. Include supporting proof like timecards, rate letters, or benefit enrollment confirmations.

For taxes or garnishments, attach the relevant W‑4, state form, or court order. Keep copies of all correspondence and the affected stubs.

Escalate to your state labor department if errors persist and impact wages.

Free resources and templates

Use these copy-ready outlines to create clear, compliant pay statements in your payroll system. These are educational templates—not legal advice—and should only reflect actual payroll.

Minimal pay stub template (text layout):
Employer: [Legal Name], [Address]
Employee: [Name], [ID/Last 4 SSN], [Address]
Pay Period: [Start–End], Pay Date: [Date], Frequency: [Weekly/Biweekly/Semimonthly]
Earnings: Regular [Hours x Rate = Amount]; Overtime [Hours x Rate = Amount]; Bonus/Commission/Tip [Amount]
Pre‑Tax Deductions: 401(k) [Amount]; HSA [Amount]; Medical/Dental/Vision [Amount]
Taxes: FIT [Amount]; SIT [Amount]; SS [Amount]; MED [Amount]; Local [Amount]
Post‑Tax Deductions: [Description/Amount]
Garnishments: [Description/Amount]
Net Pay (This Period): [Amount]
YTD: Earnings [Amount]; Taxes [Amount]; Deductions [Amount]; Net [Amount]
CSV headers you can paste into a spreadsheet:
Employer,Employee,EmpID,PayPeriodStart,PayPeriodEnd,PayDate,Frequency,RegularHours,RegularRate,RegularPay,OTHours,OTRate,OTPay,Bonus,Commission,Tips,Gross,PreTax401k,PreTaxHSA,PreTaxMedical,TaxableWages,FIT,SIT,SS,Medicare,Local,PostTaxDeductions,Garnishments,Net,YTDEarnings,YTDTaxes,YTDDeductions,YTDNet
Quick compliance checklist:
Show employer/employee info, pay period and date, hours/rates, itemized earnings and deductions, net pay, and YTDs
Provide electronic access or paper as your state requires
Keep records per FLSA/state rules and update rates each year (IRS Pub. 15‑T)

References: IRS Publications 15 and 15‑T (withholding and FICA), U.S. Department of Labor (FLSA), and your state labor department for pay statement requirements. Always check the latest rates and rules before issuing pay statements.