Read Your Paycheck
Learn to read gross pay, net pay, taxes, deductions, benefits, and withholding on your paycheck.
What Read Your Paycheck gets you.
By the end of this upgrade, you will be able to fully explain every line on your pay stub, including gross pay, deductions, and net pay.
- A recent pay stub
- Your benefits enrollment summary
- Your W-4 or equivalent withholding elections
Run the upgrade.
- 01
Identify gross pay
Find your total earnings before any deductions, including base pay, overtime, and bonuses for that pay period.
- 02
Identify pre-tax deductions
Locate deductions taken before taxes are calculated, such as retirement contributions and health insurance premiums.
- 03
Identify tax withholding
Locate federal, state, and payroll tax lines (such as Social Security and Medicare) withheld from your pay.
- 04
Identify post-tax deductions
Locate deductions taken after taxes, such as Roth retirement contributions or certain benefit premiums.
- 05
Calculate net pay
Confirm that gross pay minus all deductions and withholding equals the net (take-home) amount deposited to your account.
Net pay = gross pay - pre-tax deductions - taxes withheld - post-tax deductions
- 06
Check year-to-date totals
Review the year-to-date column to confirm totals are accumulating correctly and to spot any deduction that looks wrong.
- You can identify gross pay, all deductions, and net pay on your stub
- You understand which deductions are pre-tax versus post-tax
- You can confirm the math between gross and net pay
- You have reviewed year-to-date totals for accuracy
Revisit when
- Your pay, benefits, or withholding elections change
- You start a new job
- A deduction or amount looks unfamiliar