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How to read a pay stub
A pay stub explains the earnings and deductions behind a payment. Start with the dates, then follow the money from gross pay to net pay. This guide explains common labels; your employer’s layout may look different.
By YourPayStubs · Published October 17, 2026
1. Check the pay period and pay date
The beginning and ending dates describe the period covered by the payment. The pay date identifies when the payment is made. They serve different purposes: a payment can be made after the work period ends.
For example, a record may cover October 1–14 with an October 20 pay date. Check both against the actual payroll records instead of using the pay date as the period end.
2. Read gross pay and the earnings lines
Gross pay means earnings before taxes and other deductions. Earnings lines may separate regular wages, overtime, bonuses, or other compensation.
For a straightforward hourly example, 40 regular hours at $25 per hour gives $1,000 in regular earnings. Check the rate and hours individually, then review any additional earnings. Salaried records may present earnings differently.
3. Follow deductions through to net pay
Taxes and other deductions reduce the amount taken home. Common labels include federal income tax, Social Security, Medicare, and state income tax. Other lines can include benefit contributions or other payroll deductions. Not every line applies to every worker.
Net pay is the amount remaining after taxes and other deductions. Review each line rather than assuming a difference between gross pay and a bank deposit is an error. A statement can also include adjustments or multiple payment allocations; ask payroll to explain unfamiliar items.
4. Separate current amounts from year-to-date totals
Current refers to this payment. Year to date (YTD) accumulates amounts from the start of the calendar year through the current payment. Compare matching columns: current earnings with current deductions, and YTD earnings with YTD deductions.
When using YourPayStubs, enter earlier YTD amounts from your records. The series you create is added to those starting totals. Do not enter totals that already include the same series, or those payments will be counted twice.
5. A simple gross-to-net example
Fictional illustration—not a tax calculation
Regular earnings: 40 hours × $25 = $1,000
Total taxes and other deductions: $200
Net pay: $1,000 − $200 = $800
The $200 is an invented combined deduction amount, not a suggested withholding rate. Actual payroll figures depend on the worker’s circumstances and payroll records.
6. Check the record before you save it
- Confirm the company and worker names and addresses.
- Compare the period dates and pay date with the actual payment.
- Check hours, rates, earnings, and every deduction.
- Keep current and YTD figures in their correct columns.
- Ask the employer or payroll provider about an unexplained difference.
In YourPayStubs, review every generated pay period before checkout. If a purchased document contains an entry mistake, contact support with your order reference. See the refund policy for how correction requests are handled.
Employee and contractor records
YourPayStubs offers an employee flow and a separate contractor payment-record flow. The contractor flow does not automatically deduct employee payroll taxes. Choose the flow that matches the actual relationship and payment records; generating a document does not establish worker classification or verify income.
Sources and further reading
- Consumer Financial Protection Bureau: How to read a pay stub (PDF)
- NYC Office of Payroll Administration: Pay statement explained (a specific employer’s example)
General educational information. This guide explains common labels, not individualized tax advice or a complete list of employer requirements. YourPayStubs documents should reflect real compensation you are authorized to record. Review our supported calculation cases and product limits.