The three numbers that matter most

Every paycheck has dozens of lines, but three numbers tell the whole story:

Gross pay — what you earned before any deductions
Total deductions — taxes plus benefits and retirement contributions
Net pay — what hits your bank account

Net pay is usually 65–75% of gross pay for most employees. The exact percentage depends on your tax bracket, state, and how much you contribute to pre-tax benefits.

What's on your paycheck stub

A typical paycheck stub has six main sections:

1. Employee and pay period info

Your name, employee ID, the pay period dates, the pay date, and how often you're paid (weekly, biweekly, semimonthly, monthly).

2. Earnings

Regular pay (your base wages), overtime, bonuses, commissions, and any other earnings. Each typically shows the hours worked, rate, and amount, both for this period and year-to-date.

3. Pre-tax deductions

Items deducted before federal income tax is calculated. The most common are traditional 401(k), traditional health insurance, HSA, FSA, and dependent care FSA. These reduce your taxable income and lower your tax bill.

4. Taxes withheld

Federal income tax, Social Security tax (6.2%), Medicare tax (1.45%), and state and local income tax (varies). These funds go to government agencies — you'll reconcile federal and state amounts when you file your tax return in April.

5. After-tax deductions

Items deducted after taxes are calculated. Common examples: Roth 401(k) contributions, life insurance premiums, disability insurance, union dues, and wage garnishments. These don't reduce your tax bill but still come out of your paycheck.

6. Net pay and totals

The bottom of your stub shows your net pay (what you take home), plus year-to-date totals for everything. The YTD numbers help you track your progress through the year and spot any errors over time.

What you should check every payday

Hours and rate — make sure your hours and pay rate match what you actually worked
Overtime — overtime pay is required at 1.5x for hours over 40/week (in most cases)
Federal withholding — should be roughly proportional to your salary; big jumps may signal a W-4 issue
Pre-tax deductions — 401(k) and HSA amounts should match what you elected during open enrollment
YTD totals — should grow consistently each pay period

If anything looks wrong, contact HR or payroll right away. Errors are easier to fix in the same pay period than after they've cascaded across multiple checks.

Paycheck Basics