How to Read a Pay Stub
Start with gross pay, deductions and net pay. Pre-tax deductions such as a traditional 401k or some health premiums reduce taxable income; post-tax deductions do not. YTD means year-to-date and helps catch bonus, raise or over-withholding errors.
Three numbers
Gross: pay before taxes, including hourly, overtime and bonuses.
Deductions: taxes, social insurance, health, retirement and union dues.
Net: take-home after all deductions.
Pre-tax vs post-tax
Pre-tax deductions reduce taxable income but not always social insurance wages.
Roth/post-tax deductions do not reduce current taxable income.
Compare YTD with the prior period and ask HR/payroll about anomalies.
FAQ
Why is net pay lower than expected?
Check new deductions, tax brackets, benefits open season or retroactive adjustments, not just the total.
What is YTD for?
It verifies annual income, tax and retirement contributions, useful before filing.