How To Read Your Paycheck - What's on Your Paystub

What is Included on a Paycheck Stub?

If you look at the paycheck from 50 different companies, it is highly possible you will have 50 different looking paychecks. Some checks will be very detailed including things like the number of exemptions you are claiming, marital status, vacation time, and 401k contributions. Other Paychecks will only show the information required by law. Each company can print checks on whatever check stock or check format they choose. However on all those different looking paychecks there are certain things printed that is consistent with all of them. The following information will appear on every paycheck.

Gross Pay: This includes the total amount of income that you earned during a particular pay period. Your employer determines the pay period. A pay period can be weekly, bi-weekly, monthly or something else. This amount does not include any tax deductions or company deductions such as insurance.

Before any Federal Taxes are deduced from your check, you have a few company deductions that are not taxed. These are your deduction to your medical and dental plans, and any 401k contribution.

Statutory Deductions: These are on all paychecks required by law


Federal Tax Amount: This amount can vary depending on the amount of money you earn and the number of exemptions you chose to claim. You can check the IRS.gov website for your income tax bracket

State Tax Amount: Depending on the state you live in, you may not be required to pay a state tax. If your state has an income tax law this amount is deducted from your paycheck the same way as Federal tax. You can find your state income tax rate from your state’s website



Local Tax Amount: Although rare, a local tax is sometimes applied to employees of certain cities, counties or school districts. For example, I believe New York is a state with city taxes.

You will now have all your other company deductions like supplemental insurance, and any stock purchase plans etc..

Net Pay: This is the amount of income that you actually take home after all withholdings and deductions have been applied.

Common Abbreviations Used on Paycheck Stubs
YTD: Year-to-Date
FT or FWT: Federal Tax or Federal Tax Withheld
ST or SWT: State Tax or State Tax Withheld
SS or SSWT: Social Security or Social Security Tax Withheld
MWT or Med: Medicare Tax Withheld
FICA: Federal Insurance Contributions Act

Although not required, the following are items that may appear on your paycheck stub These would be some of the things mentioned in the first paragraph.

Take a look at your pay stub now you have a better understanding of the type of taxes your paying and why.


If you work for a small company that might have manual payroll check your paycheck to make sure the deductions are calculated correctly