How to Read Your Pay Stub: Every Deduction Explained
Gross pay, net pay, FICA, 401(k), HSA — your pay stub has 15+ line items. Here is what each one means.
Most people look at one number on their pay stub: the deposit amount. But understanding every line item helps you optimize your take-home pay and catch errors (which happen more often than you think).
The Big Three Deductions
Federal income tax: 10-37% (progressive brackets). FICA (Social Security 6.2% + Medicare 1.45%): flat rate on all earnings up to $168,600 for SS. State income tax: 0-13.3% depending on state (9 states have zero).
Pre-Tax Deductions (Reduce Taxable Income)
401(k)/403(b): your retirement contribution. Health insurance premium: your share of medical/dental/vision. HSA/FSA: health savings contributions. These reduce your taxable income — a $200 401(k) contribution costs you only $140-160 in actual take-home (depending on tax bracket).
Post-Tax Deductions
Roth 401(k): after-tax retirement (grows tax-free). Disability insurance. Life insurance above $50K. Union dues. Garnishments.
Check These Annually
Verify your tax withholding (W-4) after major life changes. Review benefit elections during open enrollment. Confirm your 401(k) contribution rate. Check YTD totals against your records.
Model your paycheck with our paycheck calculator and optimize withholding with the W-4 calculator.