Decode this · Sample document

A pay stub, explained

Gross pay, the taxes and deductions taken out, and what actually lands in your account. Sample only: every name and number is made up.

SAMPLE EMPLOYER LLCEarnings statement

Employee: Jordan Sample 1 · Pay period: 03/01–03/14 · Pay date: 03/20

Earnings	Hours	Rate	This period	Year to date 6
Regular	80.00	$17.50	$1,400.00	$7,000.00
Overtime 2	4.00	$26.25	$105.00	$210.00
Gross pay 3			$1,505.00	$7,210.00
Taxes and deductions
Social Security 4		6.2%	−$93.31	−$447.02
Medicare		1.45%	−$21.82	−$104.55
Federal income tax			−$98.00	−$470.00
State income tax			−$40.00	−$192.00
Health insurance 5			−$45.00	−$225.00
401(k) 3%			−$45.15	−$216.30
Net pay 7			$1,161.72	$5,555.13

What the numbers mean

Check the basics. Your name, the pay period, the pay date, your hours and your rate. Compare the hours to your own record (consumer.gov).
Overtime. Unless you're exempt, hours over 40 in a workweek are paid at no less than 1.5 times your regular rate: here $17.50 × 1.5 = $26.25 (DOL).
Gross pay. Everything you earned before anything comes out.
Social Security and Medicare. 6.2% and 1.45% of your wages (IRS). $1,505 × 6.2% = $93.31. Federal income tax depends on your W-4.
Benefit deductions. Health insurance and retirement savings. Make sure they match what you signed up for (consumer.gov). This sample takes health insurance out after taxes. On many pay stubs it comes out before taxes, through what's called a cafeteria plan, so the tax lines are a little smaller (IRS).
Year to date. Adds up every paycheck so far this year. Your last stub of the year should line up with your W-2, but Box 1 will be lower if you put money into a 401(k) or other pre-tax plan, like the 401(k) on this stub (IRS).
Net pay. Your take-home pay. It should match what hit your bank account.