How to Read a Paycheck Stub: Payslips 101

Each payday comes with its own receipt—the paystub—which is a record of all hours worked, take-home income, and any taxes and deductions that have been withheld.

But what do all the different sections and numbers on a pay stub mean?

In this article, we'll discuss the main contents of a pay stub, what they mean, and how they are calculated.

Key fields in a paycheck stub

A pay stub (payslip, or paycheck stub) is a document issued by the employer to the employee at the end of a pay period (often biweekly or monthly). A pay stub contains a breakdown of earnings, taxes, and deductions for the purpose of transparency and recordkeeping.

There are several core sections that must be included in every payslip:

• Employee information: Name, pay period, and pay date
• Gross pay: The total amount of income the employee earned before deductions
• Deductions: Any taxes, benefit premiums, and garnishments
• Net pay: The employee's total ‘take-home’ earnings after deductions
• Employer information: The employer's name
• Year-to-date (YTD): Total amount of money accumulated from the beginning of the year

Step-by-step: How to read your paycheck stub

Pay stub formatting might vary depending on providers, but the core sections remain consistent. To read your paycheck correctly:

1. Confirm pay period and hours
2. Find gross pay
3. Review pre-tax deductions
4. Check Federal Insurance Contributions Act (FICA) and federal/state tax withholdings
5. Subtract deductions to verify net pay
6. Compare YTD totals and flag discrepancies to HR

Watch our short video for an annotated tour of a modern paycheck:

Paycheck earnings explained

A pay stub typically contains an earnings section that features the employee's gross pay and a breakdown of how it was calculated. The net pay is usually displayed separately, at the top or bottom of the pay stub.

Gross pay

Gross pay includes all income earned from a specific employer over a given pay period. This depends on the type of employment, the employer policy, and the employee's job title, and typically includes compensation such as:

• Base salary or wage
• Overtime pay (OT)
• Bonuses
• Any income from commissions
• Holiday pay (if the employee worked holidays during the pay period)
• Shift differentials or hazard pay (additional pay for less desirable shifts/working hours, or for completing high-risk jobs)
• Other taxable income (such as travel allowances)

Net pay

This is the amount the employee receives after all relevant deductions have been subtracted from their gross pay. The employer is required by law to withhold certain deductions (for example, state and federal income taxes). However, other deductions are optional, such as contributions to an employer-provided retirement or health plan.

Find out more about the different statutory and voluntary benefits offered by employers with our article on the topic.

Paycheck deductions explained

In a pay stub, taxes and deductions (compulsory or optional) may be listed separately or in the same section. In general, these include the following:

Federal, state, and local taxes

In the US, all taxpayers are subject to federal income tax (FIT), with most states (with the exception of nine) and some jurisdictions (such as New York City and Philadelphia) also imposing their own levies on top of the federal ones.

Employers collect W-4 forms from all employees to determine how much tax each employee needs to pay (based on marital status, dependents, income level, and other factors). The correct sum is then withheld by the employer with each paycheck and reflected in the pay stub the employee receives.

For more information on how US federal, state, and local income taxes work, read our comprehensive 2025 explainer on the topic.

Wage garnishments

Wage garnishments are deductions that the employer has been court-ordered to withhold from the employee's paycheck and send to the relevant agency or creditor. Common reasons for wage garnishments include the following:

• Child support or alimony
• Unpaid taxes
• Unpaid student loans (for an extended period of time)
• Other court-ordered debts such as medical bills, credit card debt, outstanding rent or lease payments

Wage garnishments appear in the deductions section of a pay stub and are clearly labeled. Employers are required by law to withhold these sums and ensure they are remitted to the legally named recipients.

Social Security and Medicare contributions

Apart from income taxes, employees are also required to pay Federal Insurance Contributions Act (FICA) taxes. These include:

• Social Security:: This deduction is 6.2% of an employee's gross salary up to an earning limit ($176,100 USD per annum for 2025), and finances certain benefits such as disability or retirement benefits
• Medicare: Set at a 1.45% rate (with an additional 0.9% for those earning over $200,000/year), Medicare tax funds the federal insurance program for people over 65

Together, these FICA taxes amount to 7.65% of an employee's gross pay, and show up in every pay stub. Employers are required to match employees' FICA contributions dollar-for-dollar, but pay stubs don't usually reflect that information.

Voluntary employee contributions on a pay stub

Apart from mandated tax and social security deductions, pay stubs also show any additional voluntary contributions that the employee has opted into.

These typically include contributions towards employer-sponsored plans and/or insurances offered as part of an employment benefits package. Common examples of such contributions include:

• Retirement plans such as 401(k) or 403(b)
• Health insurance premiums
• Life insurance
• Disability insurance
• Any other taxable benefits (for example, gym memberships, welfare programs)

These schemes are typically employee-paid, though employers may choose to also contribute in some capacity, which may be shown in a separate section of the pay stub.

For more details on employer benefits packages, consult our detailed guide on statutory and voluntary benefits.

Employer contributions explained

Some pay stubs contain a section with additional compulsory or voluntary benefits the employer provides to the employee as part of the employment package.

Typical employer contributions that might be listed in this section include:

• Mandatory contributions: FICA taxes, unemployment insurance, workers' compensation
• Voluntary contributions: Employer match to a 401(k) retirement plan, insurance premiums, etc.

If both the employer and the employee are making contributions to a certain benefit (such as a 401(k) plan), that item might appear twice: in the employee deductions, and the employer contributions section.

How to get a pay stub

If you need a copy of your pay stub, here are the most common ways to get one:

1. Check your employer’s payroll or HR platform

Most employers provide digital pay stubs through an online payroll or self-service portal. Log in to your company’s payroll system, such as Deel, navigate to the “Pay,” “Paychecks,” or “Earnings” section, and download the pay stub for your desired pay period.

With Deel Payroll, it’s easy for employees and back-office teams alike to access their payslips, right on-platform. It includes a clear breakdown of gross pay, deduction calculations, pay periods, and more.

2. Ask your HR or payroll team

If you don’t have access to a self-service platform—or you can’t find the statement you need—your employer’s HR or payroll department can provide a copy. They can resend pay stubs, update your contact information, or grant you portal access if it’s your first time logging in.

3. Request a printed copy

Some organizations still provide physical pay stubs or can print one for you on request. This can be helpful if you need a stamped or signed version for income verification, rental applications, or financial paperwork.

4. Check how your employer distributes pay stubs

US employers are required to maintain payroll records, but not all states require them to provide pay stubs automatically. Many states require pay information to be accessible upon request. If you’re unsure of your rights, check your state’s pay stub laws or ask your HR team.

5. If you’re a contractor

Independent contractors typically receive invoices and payment statements rather than tax-withholding pay stubs. If a client uses a platform like Deel, you can download payment records directly from your contractor dashboard.

Tips for getting the right documentation

• Know the pay period: Have the date range ready to help HR find the correct stub

• Confirm format needs: Some banks or landlords may require a PDF, printed copy, or YTD totals

• If you’ve left the company: Former employees can usually still request pay stubs from their previous employer’s payroll team

How to simplify paystub management, accuracy, and delivery

For teams across multiple states, managing payroll stubs can quickly become complicated as requirements for formatting, disclosures, and delivery vary widely.

Deel Payroll US makes it simple.

Paystubs are automatically generated from accurate, compliant payroll data and delivered instantly through an employee self-service portal. Everything is centralized—so your team can manage payroll, documentation, and audit-ready records across all 50 states and beyond without juggling systems or manual checks.

With Deel, you get:

• Accurate, state-compliant paystubs
• Centralized records for reporting and audits
• Consistent delivery through a unified employee portal
• Fewer errors and manual processes

Deel Payroll gives you one reliable system for paystub accuracy, access, and compliance—no matter where your team is based.

Book a demo to see how simple paystub management can be.