Paystub glossary
Every term printed on a US pay stub, explained in plain English, with where to find it and a worked example.
- 401(k) contributionA 401(k) contribution is money you put into your employer's retirement plan straight from your paycheck.
- Annualized incomeAnnualized income estimates yearly pay from a shorter stretch, such as one paycheck or year-to-date earnings.
- Direct depositDirect deposit sends your net pay straight to one or more bank accounts.
- Earnings statementAn earnings statement is another name for a pay stub: the record of one paycheck's earnings, taxes, and deductions.
- Federal income tax withholdingFederal income tax withholding is the amount your employer sends to the IRS toward your income tax.
- FICAFICA is the federal payroll tax that funds Social Security and Medicare.
- Form W-4Form W-4 tells your employer how much federal income tax to withhold from your pay.
- Gross payGross pay is the total you earned in a pay period before any taxes or deductions come out.
- Medicare taxMedicare tax is 1.45% of all wages, plus an extra 0.9% on high earnings, withheld to fund Medicare.
- Net payNet pay is your take-home pay: gross pay minus taxes and deductions.
- Overtime payOvertime pay is extra pay for hours over 40 in a workweek, at least 1.5 times the regular rate for most hourly workers.
- Pay date (check date)The pay date, or check date, is the day the money is paid out.
- Pay frequencyPay frequency is how often you're paid: weekly, every two weeks, twice a month, or monthly.
- Pay periodA pay period is the span of days a paycheck covers, such as two weeks or half a month.
- Post-tax deductionA post-tax deduction comes out of your pay after taxes are calculated.
- Pre-tax deductionA pre-tax deduction comes out of your pay before income tax is calculated, lowering your taxable wages.
- Section 125 (cafeteria plan)A Section 125 cafeteria plan lets you pay for certain benefits, like health insurance, with pre-tax dollars.
- Social Security tax (OASDI)Social Security tax is 6.2% of your wages, up to an annual wage cap, withheld to fund Social Security.
- State disability insurance (SDI)State disability insurance is a payroll deduction in some states that funds short-term disability and, in some states, paid family leave.
- State income taxState income tax withholding is the amount sent to your state toward state income tax.
- Wage garnishmentA wage garnishment is money withheld from your pay by legal order to pay a debt, such as child support or back taxes.
- Year-to-date (YTD)Year-to-date (YTD) amounts are running totals from January 1 through the current pay date.
Turn your paystubs into a spreadsheet.
Three documents free. No card required.