Salary & Paycheck · February 18, 2026 · 5 min read
Understanding Your Pay Stub: Every Line Explained
A pay stub packs a lot of information into a small space, and the gap between the top-line salary number and what actually lands in your account can be confusing without knowing what each line represents.
Gross pay: the starting point
Gross pay is your full earnings for the period before any deductions — the number your salary or hourly rate is based on. Every other line on the stub subtracts from this starting figure.
Tax withholdings
Federal income tax withholding is calculated based on your W-4 elections and IRS tables. FICA taxes — Social Security and Medicare — are withheld at fixed rates regardless of your W-4. A Paycheck Calculator breaks down exactly how much of your gross pay goes to each of these categories for your specific income.
Pre-tax and post-tax deductions
Pre-tax deductions — like traditional 401(k) contributions or health insurance premiums — reduce your taxable income before tax is calculated, lowering your tax bill. Post-tax deductions, like Roth 401(k) contributions, come out after tax is already applied.
This distinction is why two employees with identical gross pay can have different tax withholding amounts, simply based on which pre-tax benefits each has elected.
Net pay: what actually lands in your account
Net pay is gross pay minus every deduction above — the number that actually gets deposited. It's the figure most people think of as their 'real' paycheck, even though it represents only a portion of total compensation once benefits and employer contributions are considered.
Reading a typical stub
A pay stub showing $3,250 gross pay might show $400 federal tax withheld, $248 for Social Security, $47 for Medicare, and $195 for a 401(k) contribution — landing at roughly $2,360 in net pay. Each of these lines represents a specific, calculable deduction rather than an arbitrary reduction.
Frequently Asked Questions
Related Calculators
Published February 18, 2026. This article is for general informational purposes only — read our disclaimer.