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How to Read Your Paycheck
Your pay stub lists every deduction between your gross salary and the money you actually receive. Here is what each line means.
Gross pay
Your total earnings for the pay period before any deductions — salary or hourly wages times hours worked.
Federal withholding
The federal income tax your employer withholds based on your W-4. It is an estimate of your annual tax, spread across paychecks.
Social Security & Medicare (FICA)
6.2% for Social Security (up to the wage base) and 1.45% for Medicare. These are mandatory payroll taxes.
State & local tax
State income tax where applicable, plus any local or city taxes (for example, New York City or some Ohio municipalities).
Pre-tax deductions
401(k), health insurance premiums, and HSA contributions come out before taxes, lowering your taxable income.
Net pay
What is left — your take-home pay. Check yours against our calculator to make sure your withholding looks right.