How to Read Your Paystub

A paystub is the paper or digital slip that comes with your pay. It breaks down how much you earned and what was taken out before the money reached you. Reading it once makes the whole thing far less confusing.

Start with two key numbers: gross pay and net pay. Gross pay is the full amount you earned before anything is removed. Net pay is what's actually left for you to keep and spend – that's why it's often called take-home pay. The gap between them want is everything that got subtracted, and the stub lists each piece.

The biggest subtractions are usually taxes. These are amounts sent to the government, often shown as separate lines for national and local taxes. In many places this also includes money toward public programs like retirement or health care. Usually your employer removes these and sends them on for you, so you don't pay them by hand.

The other subtractions are often called deductions – money taken out for things tied to your job. Common ones include health insurance, a retirement savings plan, or union dues. Some deductions, like retirement savings, are money still going to you – just set aside for later instead of paid out now.

Finally, check the small details. Look at the hours listed and make sure they match what you actually worked. Check the pay period – the stretch of days this pay covers. And glance at the year-to-date totals, which add up everything you've earned and paid so far this year. If a number looks wrong, ask your employer's payroll or human-resources person to walk you through it – that's exactly what they're there for.