The net pay line at the bottom of your pay stub is explained in full in the what is net pay guide, including how FICA, federal tax, and state tax each reduce your gross.
How to Read a Pay Stub 2026: Pay Stub Explained, Every Line & Code
Learning how to read a pay stub: or how to read a paycheck stub: is the most important financial skill you receive every two weeks: and most people never read it properly. This complete 2026 guide explains every line on a pay stub, every pay stub abbreviation and deduction code, what YTD means, how to catch payroll errors, and exactly what each deduction does to your gross pay before it becomes your net pay take-home.
A Real Pay Stub: Every Line Annotated
Below is a realistic pay stub for a single filer earning $75,000 annually with biweekly pay, a 6% 401k contribution, and health insurance. Each number is labeled with a letter corresponding to the explanation below.
ACME CORPORATION , PAY STATEMENT
Annotation key: what each letter means
Pay Stub Abbreviations, Pay Stub Codes & Deduction Codes: Complete 2026 Reference
Every payroll system uses its own shorthand. The same deduction can appear with different codes depending on your employer's payroll software. This reference covers every common pay stub abbreviation and deduction code you will encounter.
| Code / Abbreviation | Full name | Type | 2026 rate or limit |
|---|---|---|---|
| FED / FIT / FWT / FITW | Federal income tax withheld | Tax | Based on W-4 + 2026 brackets (10% to 37%) |
| OASDI / SS / SOC SEC / FICA-SS | Social Security (Old-Age, Survivors, Disability Insurance) | Tax (FICA) | 6.2% up to $184,500 YTD wages |
| MED / MEDICARE / FICA-MED | Medicare tax | Tax (FICA) | 1.45% on all wages: no cap |
| SWT / SIT / ST / SITW | State income tax withheld | Tax | 0% to 13.3% depending on state |
| LOCAL / CITY / LIT | Local or city income tax | Tax | Varies: NYC, Philadelphia, others |
| ADD MED / ADDL MED | Additional Medicare Tax | Tax | 0.9% on wages above $200,000 single |
| 401K / 403B / RET | Retirement plan contribution | Pre-tax deduction | Up to $23,500 ($31,000 if age 50+) 2026 |
| HSA / H.S.A. | Health Savings Account | Pre-tax deduction | $4,300 single / $8,550 family 2026 |
| FSA / FLEX / HLTHFSA | Flexible Spending Account | Pre-tax deduction | Up to $3,300 healthcare FSA 2026 |
| MED INS / HEALTH / INS | Health insurance premium | Pre-tax (Section 125) | Employer plan: amount varies |
| DENTAL / DEN INS | Dental insurance premium | Pre-tax (Section 125) | Employer plan: amount varies |
| VISION / VIS INS | Vision insurance premium | Pre-tax (Section 125) | Employer plan: amount varies |
| GTL / GROUP LIFE | Group-term life insurance (imputed) | Taxable benefit | Coverage over $50,000 is taxable income |
| ROTH / ROTH 401K | Roth 401k contribution | Post-tax deduction | Same limits as traditional 401k: NOT pre-tax |
| GARN / GARNISH | Wage garnishment | Post-tax deduction | Court-ordered: child support, debt judgment |
| RETRO / BACK PAY | Retroactive pay | Earnings | Adjustment for prior period underpayment |
| YTD | Year-to-date | Running total | Cumulative from Jan 1 through current paycheck |
What Does YTD Mean on a Pay Stub: And Why It Matters
YTD (year-to-date) shows the cumulative running total for each pay stub line item from January 1 through the current paycheck. Every deduction and every earnings type has its own YTD column. The YTD column is more valuable than the current period column for financial planning: it shows where you stand for the full year.
| YTD line | What it tracks | How to use it | 2026 limit or threshold |
|---|---|---|---|
| YTD Gross Pay | Total earnings before all deductions | Verify annual salary is being paid correctly. Compare to W-2 Box 3+5 at year end. | No limit |
| YTD Federal Tax | Total federal income tax withheld | Estimate refund or balance due. If you have life events, adjust W-4 now. | Varies by bracket |
| YTD OASDI | Total Social Security withheld | Track when you will hit $184,500 and your net pay will jump | Stops at $11,439 (6.2% of $184,500) |
| YTD Medicare | Total Medicare withheld | Never reaches a cap: continues all year | No cap |
| YTD 401k | Total 401k contributed this year | Track against $23,500 limit. If near limit, review contribution rate. | $23,500 ($31,000 if 50+) |
| YTD HSA | Total HSA contributed this year | Track against $4,300 single / $8,550 family limit | $4,300 single / $8,550 family |
| YTD Net Pay | Total take-home received | Compare to budget. Should equal YTD gross minus all YTD deductions. | No limit |
OASDI on Pay Stub: Social Security Explained
OASDI (Old-Age, Survivors, and Disability Insurance) is the official name for Social Security tax. It is one of the most misunderstood lines on a pay stub: particularly when it disappears mid-year for higher earners.
How OASDI works across the full 2026 calendar year: $200,000 salary, biweekly
OASDI on wages above $184,500 is not deferred or owed later: it simply does not apply. The Social Security program only taxes wages up to the wage base. Your employer also stops paying their matching 6.2% once you hit the limit. Medicare (1.45%) continues on all wages with no cap: there is no equivalent Medicare wage base cutoff.
Pay Stub Deductions Explained: Pre-Tax vs Post-Tax
Not all deductions are equal on your pay stub. Pre-tax deductions reduce your taxable income before taxes are calculated. Post-tax deductions are taken after taxes. The difference affects how much each deduction actually costs you.
| Deduction type | Examples | Reduces federal tax? | Reduces FICA? | Real cost at 22% bracket |
|---|---|---|---|---|
| Pre-tax (Section 125) | Health ins., dental, vision, HSA via employer, dependent care FSA | Yes | Yes: saves extra 7.65% | $100 deduction costs only $70.35 |
| Pre-tax (above-the-line) | Traditional 401k, FSA healthcare, IRA | Yes | No: FICA still applies | $100 deduction costs $78 |
| Post-tax | Roth 401k, life insurance, garnishments, union dues | No | No | $100 deduction costs $100 |
Real cost of a $200/month health insurance premium: pre-tax vs post-tax comparison
How to Check Paycheck Deductions and Pay Stub Errors: 7-Step Verification
Payroll errors are more common than most workers realize. A 2026 survey found approximately 33% of employees reported a payroll error in the past two years. Most go unnoticed because employees do not check their pay stubs. These seven checks take five minutes and catch the vast majority of errors before they compound over multiple pay periods.
| Step | What to check | How to verify | Common error |
|---|---|---|---|
| 1 | Gross pay is correct | Hourly: rate × hours worked. Salaried: annual ÷ pay periods | Wrong hourly rate, missed hours, wrong period |
| 2 | Overtime is 1.5× | Regular rate × 1.5 × OT hours. Weekly OT: not biweekly | Employer calculating on biweekly total instead of weekly |
| 3 | OASDI is 6.2% of gross wages | Current OASDI ÷ gross wages = 6.2% | Wrong rate applied: should stop at $184,500 YTD |
| 4 | Medicare is 1.45% | Current MED ÷ gross wages = 1.45% | Rate error: Medicare never caps so errors persist all year |
| 5 | W-4 filing status is correct | Check header or deduction section for filing status code | Old W-4 still showing Single after marriage |
| 6 | 401k deduction matches election | 401k deduction ÷ gross = your elected % | Auto-enrollment at wrong %: or increase not applied |
| 7 | YTD increases by current period amounts | Current YTD − prior YTD = current period amount | Missing paycheck, duplicate deduction, period overlap |
Common Pay Stub Mistakes Workers Make
Never checking the pay stub
Only looking at the net deposit amount. This misses gross pay errors, wrong overtime calculations, duplicate deductions, and incorrect benefit elections: all of which cost real money every paycheck they go uncorrected.
Thinking OASDI disappearing is an error
When OASDI stops mid-year, many workers panic and think a deduction was skipped. It is not an error: it means YTD wages have reached the $184,500 Social Security wage base. Net pay increases by the OASDI amount for the rest of the year. This is expected and correct.
Confusing Roth 401k with traditional 401k on the stub
Roth 401k contributions are post-tax: they do not reduce your taxable wages or FED withholding. If you meant to contribute traditional (pre-tax) but enrolled in Roth, your federal income tax is higher every paycheck than expected. Check the 401k line label on your stub for ROTH or PRE-TAX designation.
Assuming W-2 Box 1 equals YTD gross pay
W-2 Box 1 (federal wages) is lower than YTD gross pay because pre-tax 401k and pre-tax health insurance are subtracted. W-2 Box 3 (Social Security wages) and Box 5 (Medicare wages) are typically higher than Box 1. All three should reconcile with your final pay stub YTD figures.
How to Read a Pay Stub: Frequently Asked Questions
How do I read my pay stub?
A pay stub has four main sections. Section 1 is the header: your name, employer, pay period dates, and pay date. Section 2 is earnings: gross pay broken into regular pay, overtime, and any bonuses. Section 3 is deductions: taxes (FED, OASDI, MED, SWT) and benefit deductions (401k, health insurance, HSA). Section 4 is the YTD column: cumulative running totals since January 1. Net pay at the bottom is your bank deposit. Start by verifying gross pay is correct, then work through each deduction line. Use the paycheck calculator to verify your expected net pay matches what your stub shows.
What does OASDI mean on a pay stub?
OASDI stands for Old-Age, Survivors, and Disability Insurance: the official name for Social Security tax. It is withheld at 6.2% of gross wages up to the 2026 Social Security wage base of $184,500. Once your YTD wages exceed $184,500, OASDI disappears from your stub for the rest of the year and your net pay increases. Your pay stub may also show it as SS, SOC SEC, FICA-SS, or Fed OASDI/EE: all mean the same thing. Total maximum OASDI withheld in 2026 is $11,439 (6.2% × $184,500). See our FICA tax guide for the full Social Security and Medicare breakdown.
What does YTD mean on a pay stub?
YTD means year-to-date: the cumulative running total from January 1 through the current paycheck for each line item. YTD gross shows total earnings this year. YTD FED shows total federal tax withheld this year. YTD OASDI tracks Social Security withholding: stops updating when it hits $11,439 in 2026. Your final December pay stub YTD figures should match your W-2 almost exactly. If your YTD net pay does not equal YTD gross minus all YTD deductions, there is a payroll error that needs investigation.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions: the salary or hourly × hours figure. Net pay is your bank deposit after federal income tax, Social Security, Medicare, state tax, and benefit deductions are subtracted. The gap is typically 22% to 35% of gross pay for most US workers. On a $75,000 annual salary biweekly, gross is $2,884.62 and net is approximately $2,100 to $2,400 depending on state and deductions. Pre-tax deductions like 401k and health insurance reduce the gap slightly by lowering taxable income. Use the paycheck calculator to see your expected gross-to-net breakdown before comparing to your actual stub.
What is FED on a pay stub and what is FIT: FED and FIT explained?
FED, FIT, FWT, or FITW on a pay stub all mean federal income tax withheld. Your employer withholds this and sends it to the IRS on your behalf. The amount is calculated using IRS Publication 15-T 2026 percentage method tables based on your W-4 filing status. For a single filer earning $2,884.62 biweekly with no pre-tax deductions, federal withholding is approximately $234 per check. If your FED withholding is significantly different from expected, check your W-4: the wrong filing status (Single vs MFJ) is the most common cause. Update your W-4 form with HR to correct ongoing withholding.
What is MED on a pay stub: Medicare tax explained?
What is MED on pay stub? MED on a pay stub means Medicare tax: the 1.45% portion of FICA. Unlike Social Security (OASDI), Medicare has no wage cap and continues on every dollar earned all year. High earners above $200,000 (single) also pay an additional 0.9% Additional Medicare Tax, which may appear as ADD MED or ADDL MED on your stub. Your employer pays a matching 1.45% on top of what is withheld. On a $2,884.62 biweekly check, Medicare withholding is $41.83. It should equal exactly 1.45% of gross wages every pay period with no variation.
Why did Social Security stop being withheld from my check?
When your YTD wages reach the Social Security wage base, OASDI withholding stops for the rest of the calendar year. The 2026 Social Security wage base is $184,500. Once your YTD OASDI column shows $11,439 withheld, your employer stops deducting it. Your net pay increases by the OASDI amount: typically $115 to $600 per check depending on your salary. It restarts at zero on January 1. This is normal and expected: not an error. It happens each year to workers earning above $184,500 and is one of the hidden benefits of high earnings that most workers are unaware of until it appears on their stub.
What are pre-tax deductions on a pay stub?
Pre-tax deductions are subtracted from gross pay before taxes are calculated, reducing taxable wages and lowering your tax bill. Traditional 401k contributions reduce federal and state income tax but not FICA. Health insurance and HSA premiums under a Section 125 cafeteria plan reduce both income tax AND FICA: saving an extra 7.65% compared to a 401k. On your stub, pre-tax deductions appear between gross pay and the tax section. Roth 401k contributions are post-tax and do NOT reduce taxable wages: verify your 401k label to confirm which type you are contributing. See our gross income guide for how pre-tax deductions affect your W-2 Box 1.
How do I check my pay stub for errors?
Run these five checks every pay period: (1) Verify gross pay: hourly rate × hours worked, or annual salary ÷ pay periods. (2) Verify OASDI is exactly 6.2% of gross wages and stops after YTD wages hit $184,500. (3) Confirm your W-4 filing status shown matches your actual filing status. (4) Verify 401k deduction matches your elected percentage of gross. (5) Confirm YTD figures increased by exactly the current period amounts from your prior stub. Report any discrepancy in writing to HR within the same pay period. See the full paycheck calculator to calculate your expected net pay and compare to what your stub shows.