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What every line on a pay stub actually means

7 min read · Keepsync Systems

A pay stub is one of the most-looked-at and least-understood documents in working life. But a stub is really just the gross-to-net calculation laid out as data — and every line has a specific job. Here’s the whole thing, top to bottom.

Earnings

The top section breaks gross pay down by type: regular hours × rate, overtime hours × the overtime rate, plus salary, bonuses or commissions. The “in” of the calculation.

Pre-tax deductions

Deductions taken before tax — traditional 401(k), cafeteria-plan health, HSA/FSA. They reduce the taxable wages the taxes below are figured on.

Taxes withheld

Itemised: federal income tax, Social Security and Medicare (the employee’s FICA share), and state and sometimes local income tax.

Post-tax deductions

Anything taken after tax — Roth contributions, garnishments, union dues. They shrink the paycheck but not taxable wages.

Net pay

The bottom line: what actually reaches the bank.

Employer contributions (informational)

Many stubs also show what the employer paid — its FICA match, retirement match, benefit contributions. These don’t reduce the employee’s pay; they’re the employer-side costs shown for transparency.

The YTD columns

Alongside the period, a stub carries year-to-date totals for each line. These aren’t decoration — they’re how the Social Security wage base is tracked and how the stub reconciles to the W-2. YTD figures that don’t add up are a warning sign.

Read as data, a stub is the audit trail for one employee, one period: every earning, deduction and tax, plus the running totals that tie it back to the year. When someone asks “why this number,” the answer is on this line-by-line trail.
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