How to Read a Pay Stub

AdultingEasy4:175 steps

By ShowMeStepByStepPublished April 28, 2026Updated May 4, 2026

The first time you get a paycheck and the deposit is hundreds of dollars less than what you thought you'd earn, the paystub is the document that explains what happened. It's also where you'd catch a payroll error before it grows into months of underpayment.

Money Instructor breaks down a sample paystub into five sections you should check every single pay period. Total time: about 30 seconds. Save the stubs in a folder - you'll need them for loans, apartment applications, and tax filing.

You'll need a recent paystub (paper or PDF from your payroll portal) and 30 seconds. That's it.

Step-by-Step Guide

Step 1: Verify your company and employee info

1:25

The top of every paystub lists the company name and your information - your name, employee ID, and a partial Social Security number. Confirm the spelling matches official documents.

If the SSN suffix is wrong, your withholdings might be applied to someone else's tax record. Catch it early.

Tip

If you don't have a paper paycheck, paystubs are usually accessible through your company's payroll portal: ADP, Workday, Gusto, or whatever your employer uses. Direct deposit doesn't mean no paystub.

Step 2: Check the pay period and pay date

1:40

Pay period is the date range you worked - usually two weeks for bi-weekly, half a month for semi-monthly. Pay date is when the money actually hits your account, often a few days after the period closes.

If you worked overtime or had time off, count the days against your pay period. Anything missing should show up next pay date or get raised with HR.

Step 3: Read your gross income

2:00

Gross income (also labeled Wages or Earnings) is the total before any taxes or deductions. For hourly employees: rate times hours worked. For salaried: annual salary divided by the number of pay periods per year.

This is the number people quote when they describe their salary, but you never actually see it in your bank account.

Step 4: Review the deductions

2:20

The deductions section lists every dollar pulled out of your gross income. The standard four: Federal Tax, FICA Social Security (6.2%), FICA Medicare (1.45%), and State Tax (varies by state, zero in some).

Below those, look for elective deductions: 401k or 403b retirement contributions, health insurance premiums, HSA contributions, dental/vision premiums. If something looks wrong or unfamiliar, ask HR.

Tip

Year-to-date (YTD) numbers next to each deduction show your annual totals. Useful when you're estimating your tax refund or checking if you've maxed out your 401k contribution limit.

Step 5: Confirm net income matches your deposit

3:10

Net income (also called take-home pay) sits at the bottom: gross minus all deductions. This is the number that should match the deposit in your bank.

If the bank deposit is less than net income, something is wrong: a wage garnishment you didn't know about, a payroll mistake, or a deduction code you missed. Email HR immediately - the longer it sits, the harder it is to fix.

Tip

Save every paystub. Mortgage applications usually want the last 2-4. Tax filing in April uses YTD totals. A folder labeled 'Paystubs YYYY' in your email or files saves a panic later.

Your Guide

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