Dad's Quick Take
Your paystub shows gross pay (what you earned) and net pay (what you take home after taxes and deductions). The gap is mostly taxes, plus things like health insurance and retirement contributions. Learning to read it means you'll catch errors and understand your real income.
Gross vs. net
- Gross pay — your earnings before anything comes out. The big number.
- Net pay — what actually hits your bank account. The number that matters for budgeting.
- The difference — taxes and deductions, listed line by line.
The deductions, decoded
- Federal & state income tax — withheld based on the W-4 you filled out.
- FICA (Social Security & Medicare) — required payroll taxes.
- Health insurance — your share of the premium, often pre-tax.
- 401(k) — anything you chose to save for retirement (grab the match if offered).
Check it
Glance at each stub: are your hours right, is your withholding sane, did a deduction change unexpectedly? Payroll mistakes happen, and they're easier to fix early.
Common questions
Why was my first check taxed so much?
Withholding estimates can run high at first. If too much is withheld over the year, you get it back as a tax refund.
What's the difference from a W-2?
A paystub is per paycheck; the W-2 is the year-end summary you use to file taxes.