Work · Your first weeks on the job
Reading your pay stub
Gross pay is hours times rate (80 hours at $15 = $1,200). From that come Social Security at 6.2% ($74.40 here), Medicare at 1.45% ($17.40), federal income tax set by your W-4, any state or local tax, and benefits like health insurance or a 401(k). What's left is net pay. Every payday, check the hours, the rate, overtime at 1.5 times after 40 hours in a week, and that net pay matches your deposit. Keep stubs until your W-2 matches, then shred them.
You'll need
- Your latest pay stub (paper, or in your employer's payroll app)
- Your offer letter or a note of your pay rate
- Your own record of hours worked: a phone note or photo of the schedule
Do it like this
- Check the basics: your name, the pay period dates and pay date, your hours and your rate. A pay stub, also called an earnings statement, shows what you earned and what was taken out. Source: consumer.gov2 Compare the hours to your own record.
- Check overtime. Unless you're exempt, federal law requires overtime at no less than one and a half times your regular rate for hours over 40 in a workweek. Hours aren't averaged across two weeks, and weekends and holidays don't automatically count as overtime. Source: DOL4 Some states go further: California, for example, also requires overtime after eight hours in a day. Source: DOL5
- Check your rate against the minimum wage. The federal minimum is $7.25 an hour. Many states set a higher one, and when both apply, you get the higher rate. Source: DOL3 Look up your state on the DOL's state minimum wage table.
- Find gross pay: everything you earned before anything is taken out.
- Find the taxes. Employers must withhold federal and state taxes and FICA, which funds Social Security and Medicare, and in some states disability or unemployment insurance. Source: consumer.gov2 Social Security is 6.2% of your wages and Medicare is 1.45%. Source: IRS1 Federal income tax withholding depends on your W-4.
- Find benefit deductions, like health insurance or a retirement savings account. Source: consumer.gov2 Make sure they match what you signed up for.
- Find net pay, your take-home pay, and make sure it matches what hit your bank account.
- Check the year-to-date (YTD) column. It adds up every paycheck so far this year and should match your W-2 in January.
Why is my paycheck smaller?
Lay this stub next to the last one and compare line by line. The change is almost always one of these.
| What changed | Where to look on the stub |
|---|---|
| Fewer hours, or no overtime this time | Hours and gross pay |
| A new or bigger benefit deduction, like health insurance after open enrollment or a higher 401(k) percentage | Deductions |
| More federal or state tax withheld, after a W-4 change, a raise or a bonus | Taxes. See Filling out a W-4 |
| A shorter pay period, like a first or last paycheck | Pay period dates |
| A garnishment or repayment you didn't know about | Deductions. Ask payroll what it is, in writing |
Can't find the reason? Ask payroll to walk you through it. If your hours or rate are wrong, the steps above apply.
A sample paycheck
80 hours at $15 an hour over two weeks, with no overtime. The Social Security and Medicare rates are from the IRS. Source: IRS1 Your federal and state income tax depend on your W-4, your state and your pay, so they're left blank here.
| Line | Amount | How it's figured |
|---|---|---|
| Gross pay | $1,200.00 | 80 × $15 |
| Social Security | −$74.40 | 6.2% of $1,200 |
| Medicare | −$17.40 | 1.45% of $1,200 |
| Federal income tax | varies | Based on your W-4 |
| State or local tax | varies | Depends on where you live and work |
| Health insurance, 401(k) | varies | Only if you signed up |
| Net pay | what's left | Should match your deposit |
Labels you'll see
Payroll companies use different names for the same lines.
| On the stub | Means |
|---|---|
| Gross, Earnings | Pay before anything comes out |
| FICA, OASDI, SS | Social Security tax. OASDI stands for old-age, survivors and disability insurance Source: IRS1 |
| Med, MEDI | Medicare tax |
| FIT, Fed W/H | Federal income tax withheld |
| SIT, State W/H | State income tax withheld |
| YTD | Year to date: the running total for the year |
| Net, Net Pay | Your take-home pay |
Every payday, check
- Pay period dates are right
- Hours match your own record
- Rate matches your offer, and is at least your state's minimum wage
- Hours over 40 in a week are paid at 1.5 times
- Benefit deductions match what you chose
- Net pay matches your bank deposit
See it done
Video by Careers and Personal Finance by Khan Academy Nonprofit
Anatomy of a paycheck
2023 · Checked October 3, 2026
Video won't load at school or work? No problem. Everything you need is in the steps; the video's just a bonus. Watch it on YouTube later.
If it doesn't work
- If payroll doesn't fix a wage error, put your request in writing and keep copies of your stubs and your own record of hours.
- If you're paid less than minimum wage or not paid overtime you're owed, the DOL's Wage and Hour Division enforces those rules. Source: DOL3 See Your rights at work.
- If federal tax withholding looks too high or too low, update your W-4. See Filling out a W-4.
- If promised pay above the minimum wasn't paid, like a bonus or a higher rate, federal law doesn't have a collection process for that, but some states do. Source: DOL6
Good to know
The details, if you want them. Tap a line to open it.
Keep them a year
Consumer.gov suggests keeping pay stubs for a year. Once your W-2 matches, shred that year's stubs, because they may show your Social Security number. Source: consumer.gov2
Big life change?
A big change, like having a baby, can change your taxes. Talk to your employer. Source: consumer.gov2
Direct deposit
With direct deposit, you get your money right away and don't pay check-cashing fees. Source: consumer.gov2
Take it with you
Printable cardDownload card (PDF)Sources
- Internal Revenue Service Topic no. 751, Social Security and Medicare withholding rates
- Federal Trade Commission Your paycheck explained (consumer.gov)
- U.S. Department of Labor Fair Labor Standards Act
- U.S. Department of Labor Overtime pay
- U.S. Department of Labor State minimum wage laws
- U.S. Department of Labor Minimum wage
Lesson W4.2 · Last checked October 2, 2026 against the sources listed.
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