How to Read Your Paystub

Beginner: The lines on your paystub

Gross pay versus net pay

Gross pay is what you earned before anything is taken out. Net pay is what is left after deductions, the number that actually hits your account. Net pay is also called take-home pay.

The gap between them surprises a lot of people. That gap is taxes and other deductions, and understanding it is the whole point of reading your stub.

The main sections

Most paystubs have a few standard blocks: your earnings, your taxes, your other deductions, and totals. There are usually two sets of numbers: this pay period and year to date.

Year to date, often shown as YTD, means the running total for the whole year so far. It is handy for checking how much you have earned and paid in taxes overall.

Hours, rate, and earnings

If you are paid hourly, the stub shows your hours and your rate, then multiplies them into your earnings. Overtime, if any, is usually listed as its own line at a higher rate.

If you are salaried, it shows your set amount for the period instead. Either way, this section is where your gross pay comes from, so it is worth a glance to confirm it looks right.