3 min
How to read your pay stub
Gross, net, deductions and overtime, line by line.
- Gross pay: everything you earned before deductions (hours × rate, plus overtime).
- Federal and state tax: what's held back for your income taxes.
- FICA: Social Security (6.2%) and Medicare (1.45%).
- Other deductions: health insurance, 401(k) retirement and similar.
- Net pay: what lands in your account.
- YTD: the total for the year so far.
The federal overtime rule: if you're paid by the hour, hours over 40 in a week are paid at time and a half. Some states pay more.
Example
Rate $18. You worked 46 hours: 40 × $18 = $720, plus 6 × $27 = $162. Your gross pay should be $882.