How to Read Your Pay Stub
The amount deposited in your bank account is your net pay. Your pay stub shows how your earnings became that amount, including taxes and benefit deductions.
Start with the pay period and gross pay. Then work through the deductions. The labels vary by payroll system, but the main items are usually similar.
What the main lines mean
| Pay-stub item | What it means |
|---|---|
| Pay period | The dates covered by the payment. These can differ from the date you receive the money. |
| Gross pay | Earnings before employee taxes and other deductions. |
| Taxable wages | The amount used to calculate a particular tax. Federal income tax, Social Security, and Medicare can use different amounts. |
| Deductions | Amounts taken from pay, such as withholding, retirement contributions, and your share of benefit costs. |
| Net pay | The amount left after employee taxes and other deductions. |
| Year to date, or YTD | The running total for that item during the year at this employer. It does not include every job you may have held. |
Income-tax withholding is a payment toward your tax bill
Federal income-tax withholding depends on your taxable wages, pay frequency, and Form W-4. The current W-4 uses filing status and information about other jobs, credits, income, and deductions. It no longer asks for federal withholding allowances.
The amount withheld is not necessarily the tax you will owe on your return. A second job, a spouse's earnings, or a change in family circumstances can make it worth reviewing your W-4. Changing that form does not change Social Security or Medicare tax rates.
State and local withholding can depend on where you live and work. In Ohio, school district income tax depends on residence, while municipal income tax has separate rules. These taxes do not apply the same way to everyone.
Social Security and Medicare have their own rules
For covered wages in 2026, the employee Social Security tax is 6.2% up to the annual wage limit of $184,500. Regular Medicare tax is 1.45%, with no wage cap. Your employer generally pays an equal share of each. The employer's share is not deducted from your pay.
An employer must also withhold 0.9% Additional Medicare Tax once the Medicare wages it pays you exceed $200,000 in the calendar year. There is no employer match for that additional tax. Your final liability depends on your filing status and total income subject to the tax, so it can differ from the amount withheld. The IRS explains these payroll-tax rates and limits.
Why a retirement deduction can affect taxes differently
Traditional employee 401(k) and 403(b) deferrals generally reduce federal income-tax wages but remain subject to Social Security and Medicare taxes. Roth deferrals generally do not reduce either wage amount. Special employment-coverage rules can apply, including for certain government and nonprofit jobs. The IRS contribution guide explains the distinction.
Here is a simple 2026 example. An employee earns $2,000 for the pay period and contributes $100 to a traditional 401(k), with no other taxable benefits or pretax deductions. The job is covered by Social Security and Medicare, and annual wages remain below both thresholds discussed above.
| Item | Amount |
|---|---|
| Gross pay | $2,000 |
| Traditional 401(k) contribution | $100 |
| Federal income-tax wages | $1,900 |
| Social Security and Medicare wages | $2,000 |
| Employee Social Security tax | $124 |
| Employee Medicare tax | $29 |
Federal income-tax withholding and final take-home pay still depend on the W-4, pay frequency, and other applicable taxes or deductions.
Health insurance deductions follow the rules of the benefit arrangement. A deduction described as pretax does not automatically reduce every tax on the stub.
Ohio employers must make pay statements available
Ohio law requires access to a written or electronic pay statement each regular payday. Required information includes employee and employer identification, gross and net wages, the amount and purpose of additions and deductions, and the payment date and covered period. Hourly employees must also receive hours and rate information.
If something changes unexpectedly, compare the statement with the prior pay period. Check the hours, pay rate, and benefit deductions. Your employer's payroll contact can explain an unfamiliar item or review a possible error.