Here's how to read a pay stub: start at the top with the pay period and pay date, check your hours and rates, confirm gross pay, then work down through taxes and other deductions to net pay, the amount actually deposited. Finally, compare the year-to-date (YTD) totals with your own records.
Layouts vary by employer, but the building blocks are the same. Below is each section in order, a worked U.S. example, common abbreviations and a short note for Canada.
The top of the stub shows your employer, your name or employee number, the pay period (the first and last day the check covers) and the pay date. Check the pay period first. Every other number should match the shifts you worked between those two dates.
If you're paid every two weeks, remember that U.S. overtime is counted by the workweek, not the pay period. The Department of Labor (DOL) defines a workweek as a fixed, regularly recurring period of 168 hours, and says averaging hours over two or more weeks is not permitted.
The earnings section usually has columns for the type of pay, the rate, the hours, the amount for this period (Current) and the running total for the year (YTD). Common rows:
Regular: straight-time hours at your base rate.
Overtime: under federal law, covered nonexempt employees get at least 1.5 times their regular rate for hours over 40 in a workweek.
Premiums: extra pay for nights, weekends, holidays or on-call shifts, usually set by your employer's policy or your contract.
Paid time off: vacation, sick or holiday hours you were paid for but didn't work.
Other: bonuses, tips, commissions or a back-pay adjustment.
For each row, check three things: the hours match your own record, the rate matches what you were promised, and rate times hours equals the amount. For the overtime math, including bonuses and two pay rates in one week, see our guide on how to calculate time and a half.
Gross pay is the total of every earnings row before anything comes out. It's the number your rates and hours should add up to.
Federal income tax. The IRS says your employer uses your Form W-4, which covers things like filing status, multiple jobs, credits and any extra amount, to work out how much to withhold. Without a properly completed W-4, the employer withholds as if you're single or married filing separately with no other entries.
Social Security. 6.2% of your wages, and your employer pays another 6.2%. It only applies up to a yearly wage base, which is $184,500 for 2026.
Medicare. 1.45%, with no wage cap. Once your wages from one employer pass $200,000 in a calendar year, the employer also withholds a 0.9% Additional Medicare Tax.
State and local taxes. Depending on where you live and work, you may see state or city income tax and state programs such as disability insurance.
Some deductions come out before tax, such as traditional 401(k) contributions and health premiums paid through a cafeteria plan. That's why your stub may show "taxable wages" below your gross pay, and why the taxable amount for income tax can differ from the one for Social Security and Medicare. Others come out after tax, such as Roth contributions, union dues or wage garnishments. Employer-paid items, like a 401(k) match, may be listed too, but they don't reduce your pay.
Net pay is gross pay minus every tax and deduction. It's what lands in your account, and the stub may show how it was split if you use more than one account.
YTD columns add up every paycheck since the start of the year. Use them to confirm a raise took effect, to spot when you reach the Social Security wage base, and as proof of income for a loan or a lease.
Say you earn $22.00 an hour, paid every two weeks. You worked 40 hours in week 1 and 44 hours in week 2, and 16 of your week 1 hours were nights with a $1.50 premium. You put 5% into a traditional 401(k) and pay a $60 pre-tax health premium.
Regular: 80 hours × $22.00 = $1,760.00
Overtime: 4 hours × $33.00 = $132.00 (week 2 only)
Night premium: 16 hours × $1.50 = $24.00
Gross pay: $1,916.00
401(k), 5% of gross: $95.80
Health premium: $60.00
Social Security: 6.2% of $1,856.00 = $115.07
Medicare: 1.45% of $1,856.00 = $26.91
Federal income tax: $150.00 (an example figure; yours depends on your W-4)
Net pay: $1,468.22
Social Security and Medicare are figured on $1,856.00, gross pay minus the health premium, because in this example the 401(k) is pre-tax for income tax only. Also notice that week 1 had no overtime even though the two weeks total 84 hours. Only the 4 hours over 40 in week 2 count. State tax is left out to keep it simple.
REG, OT, DT: regular, overtime and double time.
DIFF or SHIFT: a shift differential or premium.
HOL, PTO, VAC: holiday, paid time off and vacation pay.
FIT, FWT or FED W/H: federal income tax withheld.
SIT or SWT: state income tax withheld.
OASDI, SS or FICA-SS: Social Security, which the IRS describes as old-age, survivors, and disability insurance tax.
MED or FICA-MED: Medicare. On some stubs MED can also mean a medical premium, so check which section it's in.
YTD: year to date.
Hours that don't match your own record, or a missing shift.
An old rate after a raise.
No overtime line in a week where you worked more than 40 hours.
A missing night, weekend or holiday premium.
A deduction you didn't sign up for, or one that changed without notice.
When something looks off, write down the line, the amount you expected and how you worked it out. Ask payroll in writing and keep a copy. The DOL notes that the federal Fair Labor Standards Act (FLSA) requires employers to keep accurate records of hours worked and wages paid.
A Canadian pay statement follows the same order: earnings, gross pay, deductions, net pay and year-to-date totals. The deductions differ. The Canada Revenue Agency (CRA) employer guide says employers deduct Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax. In Quebec, employers deduct Quebec Pension Plan (QPP) contributions instead of CPP, plus Quebec Parental Insurance Plan (QPIP) premiums where they apply. For most workers, overtime thresholds and pay statement rules come from the province or territory, so check its employment standards.
Not under federal law. The DOL says the FLSA does not require employers to provide pay stubs, although it does require accurate records of hours worked and wages paid. Your state may have its own rules, so check with your state labor office.
Your wages for the year have probably passed the Social Security wage base, which is $184,500 for 2026. Medicare keeps coming out because it has no wage cap.
Give your employer a new Form W-4. The IRS says employers must put a revised W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after they receive it. The IRS Tax Withholding Estimator can help you fill it in.
EarnCheck is an iPhone app that shows your estimated gross pay building across the pay period, with the hours, rates and premiums behind each figure, using overtime presets for the U.S. federal 40-hour rule, Ontario's 44-hour rule or custom rules. Its Payday Check compares the lines on your pay statement by gross amount and labels each one Match, Difference to Review or Incomplete Information, keeping deductions separate. If something differs, it drafts an editable message for payroll, but it doesn't contact your employer and needs no bank or employer login.
Get EarnCheck free on the App Store
Overtime Pay (U.S. Department of Labor, Wage and Hour Division)
Topic no. 751, Social Security and Medicare withholding rates (IRS)
Topic no. 753, Form W-4, Employee's Withholding Certificate (IRS)
T4001 Employers' Guide: Payroll Deductions and Remittances (Canada Revenue Agency)