How to Read a Pay Stub: A Visual Step-by-Step Guide

The 5 Main Sections of a Pay Stub

Every U.S. pay stub — whether from ADP, Gusto, QuickBooks, or a generator — contains the same five sections:

1. Header (employer + employee info)
2. Earnings
3. Taxes
4. Deductions
5. Summary (gross, deductions, net)

1. Header

• Employer: company name, address, sometimes EIN
• Employee: name, address, employee ID, last 4 of SSN
• Pay period dates: start, end, and pay date
• Filing status: Single, MFJ, MFS, HoH, plus dependents

2. Earnings

Lists every type of pay for both the current period and YTD:

• Regular hours × hourly rate
• Overtime hours × 1.5x rate
• Holiday, vacation, sick, bonus, commission, tips, reimbursements

Tip: Always verify hours × rate = current earnings. Math errors here are the most common payroll dispute.

3. Taxes

• Federal income tax (based on your W-4)
• Social Security (6.2% up to $176,100)
• Medicare (1.45%, plus 0.9% above $200K)
• State income tax (varies — 9 states have none)
• Local/city tax (where applicable)
• SDI, PFL, SUI (state-specific)

4. Deductions

Two categories:

• Pre-tax: 401(k), HSA, FSA, health/dental/vision premiums — reduce taxable income
• Post-tax: Roth 401(k), garnishments, union dues, advances — taken after taxes

5. Summary

• Gross Pay — total earnings before anything is taken out
• Total Taxes — sum of all tax withholdings
• Total Deductions — sum of all pre + post tax deductions
• Net Pay — what hits your bank account
• YTD totals — running annual figures for each line

Quick Math Check

Formula: Gross − Pre-Tax Deductions − Taxes − Post-Tax Deductions = Net Pay

If that equation doesn't balance, contact your payroll team.

Want a Pay Stub That's Easy to Read?

Our paystub templates are designed for clarity — every section is labeled and every number is verifiable.