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How To Read Your Paycheck

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Gross vs net — the basic structure

A paycheck has about a dozen line items on it and most people only look at the bottom number. That’s how you end up surprised at tax time, or missing that HR is deducting too much for your health plan, or under-contributing to your 401(k) without knowing. This guide walks through every line on a typical US pay stub, what’s fixed vs adjustable, and how to spot the three most common errors.

Pre-tax deductions (reduce your taxable income)

Every paystub shows year-to-date totals alongside this-period. These help you answer:

Tax line items

Single, $80,000 salary, biweekly (26 checks), contributing 10% to 401(k), $150 health premium, California.

Post-tax deductions (after federal tax is calculated)

The three most common pay-stub errors

The year-to-date (YTD) columns

The net-check math for a real paycheck

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