A US paycheck is a stack of acronyms. FED, FICA, MED, OASDI, SDI, FSA, HSA, each line takes a chunk out of your gross. Most people glance at the net deposit and move on. Without understanding the rest, you can miss a wrong tax bracket, an unfair benefit deduction, or a state-withholding error that compounds for years.
Here’s every line on a US W-2 paystub, what it means, and what it should look like for a typical paycheck.
The structure of a US paystub
Every paystub has four sections:
- Earnings, what your employer paid you this period.
- Pre-tax deductions, subtracted from gross BEFORE tax is calculated.
- Taxes, federal, state, FICA, sometimes local.
- Post-tax deductions, subtracted from net AFTER tax (Roth 401(k), garnishments, etc.).
The flow is: Gross → less pre-tax → Taxable wages → less tax → less post-tax → Net.
Earnings section
| Line | Meaning |
|---|---|
| Regular | Hourly rate × hours worked, or salary ÷ pay periods |
| Overtime | Hours over 40/week at 1.5× rate (FLSA-required for non-exempt) |
| Bonus | One-time payments, taxed at supplemental rates |
| Commission | Variable comp, supplemental tax rate |
| Holiday / PTO | Paid time off (same tax treatment as regular wages) |
Watch: Overtime should be 1.5× regular rate (not just 1.5× hourly rate). If you get shift differentials or bonuses, those get factored into the regular rate.
Pre-tax deductions
These reduce your federal (and usually state) taxable wages.
| Line | What it means | 2026 cap |
|---|---|---|
| 401(k) or 403(b) | Traditional retirement contribution | $24,500 base / $32,500 with standard age-50 catch-up |
| HSA | Health Savings Account (if HDHP) | $4,400 single / $8,750 family |
| FSA | Flexible Spending Account | $3,400 health / $7,500 dependent care ($3,750 MFS) |
| Health insurance premium | Employer-sponsored plan | No cap |
| Dental / vision | Pre-tax via Section 125 cafeteria plan | No cap |
| Transit / parking | Commuter benefits | $340/mo each |
Watch: Pre-tax deductions reduce federal income tax, state income tax, and FICA wages, except 401(k), which only reduces federal/state, not FICA. HSA contributions via payroll uniquely escape FICA, which is why payroll HSA contributions beat after-the-fact contributions.
Federal income tax
Listed as FED, FIT, or FWT depending on the payroll system. The amount is calculated from your W-4 + your taxable wages this pay period, using IRS Publication 15-T’s percentage-method or wage-bracket tables.
Quick check: Your annual federal withholding ÷ your annual taxable wages should be roughly equal to your effective federal tax rate from the Federal Income Tax Calculator. If it’s much lower, your W-4 is under-withholding.
FICA (Social Security + Medicare)
This is two separate taxes, often combined into one paystub line.
Social Security (OASDI): 6.2% of wages up to the annual wage base. The 2026 base is $184,500. Above this, no additional Social Security tax is withheld for that job.
Medicare (MED): 1.45% of all wages. No cap. Additionally, a 0.9% Additional Medicare Tax on wages above $200,000 (single) or $250,000 (MFJ), withheld by the employer once your YTD wages exceed $200K, without regard to filing status.
| Employee | Employer | Total | |
|---|---|---|---|
| Social Security (up to $184,500) | 6.2% | 6.2% | 12.4% |
| Medicare | 1.45% | 1.45% | 2.9% |
| Additional Medicare ($200K+) | 0.9% | , | 0.9% |
Watch: If you switch jobs and combined wages cross $184,500, each employer applies the cap independently. Excess employee Social Security withholding can generally be claimed as a credit on the federal return.
State income tax
Varies dramatically by state. The 9 no-income-tax states are: AK, FL, NV, NH, SD, TN, TX, WA, WY. Every other state has either a progressive bracket system (CA, NY, NJ) or a flat rate (CO, IL, MI, PA, UT, etc.).
Some states (CA, NJ, NY, HI, RI, PR) also have State Disability Insurance (SDI) or Paid Family Leave deductions on top of income tax. California’s 2026 SDI withholding rate is 1.3%, with no taxable-wage limit.
Check your state-specific paycheck math with our Paycheck Calculator (50 states).
Local income tax
A handful of cities/counties have their own income tax:
- NYC: 3.078%–3.876% city tax on top of NY state.
- Yonkers: ~16.75% of NY state tax as a surcharge.
- Cleveland, Detroit, Philadelphia, Pittsburgh, Kansas City MO, Wilmington DE, others: 1-4% city wage tax.
- Maryland counties + Indiana counties: piggyback on state tax.
If you live in NY but work in NJ (or vice versa), you’ll see a complex multi-state line. Reciprocity agreements between some states (PA-NJ, DC-VA-MD) simplify this; others require you to file both state returns.
Post-tax deductions
These come out after tax is calculated:
- Roth 401(k) contribution (after-tax, but grows tax-free)
- Wage garnishments (court-ordered, child support, IRS levies)
- Union dues
- Charitable payroll deductions
- Stock purchase plan (ESPP) contributions, though some ESPPs use pre-tax for the gross-up calc
- Loan repayments (401(k) loan, employer-issued)
A worked example
Single filer in a state with no individual income tax, earning $120,000 with 26 pay periods ($4,615.38 gross each):
| Line | Amount/period | Annual |
|---|---|---|
| Gross | $4,615.38 | $120,000 |
| − 401(k) traditional 10% | ($461.54) | ($12,000) |
| − Health premium | ($120.00) | ($3,120) |
| − HSA | ($169.23) | ($4,400) |
| Federal taxable | $3,864.61 | $100,480 |
| FICA-taxable wages | $4,326.15 | $112,480 |
| Estimated federal tax | ($510.60) | (~$13,276) |
| Social Security (6.2%) | ($268.22) | (~$6,974) |
| Medicare (1.45%) | ($62.73) | (~$1,631) |
| State income tax | $0 | $0 |
| Net pay | $3,023.06 | ~$78,600 |
The federal line is an annual-liability estimate using the 2026 single standard deduction and brackets, divided across 26 checks. Actual withholding depends on the employee’s Form W-4, payroll method, credits, and rounding. The key correction is that a traditional 401(k) reduces federal taxable wages but does not reduce Social Security or Medicare wages; the Section 125 health premium and payroll HSA contribution do.
When something looks wrong
- Federal tax = 0. Your W-4 is set to single/no dependents but with such large pre-tax deductions that your taxable wages are under the standard deduction threshold. Recompute via W-4 Calculator.
- State tax doesn’t match your state. Possibly stale state withholding form, or you live in a different state than your work state.
- Social Security stops mid-year. Normal once year-to-date wages at that employer cross the $184,500 wage base. Medicare continues.
- A new “FICA-Additional” line appears. Normal once YTD wages cross $200K, the 0.9% Additional Medicare Tax.
Other countries
A UK payslip has different acronyms (PAYE for income tax, NI for National Insurance, sometimes Student Loan). Canada has CPP/EI/federal/provincial. Australia has PAYG/Super. India has TDS, EPF, professional tax. We’ll cover each.
Primary sources
- IRS Pub. 15-T (2026), Federal Income Tax Withholding Methods
- SSA Contribution and Benefit Base 2026, Social Security wage base
- IRS Pub. 15, Employer’s Tax Guide
- IRS 2026 Retirement Plan Limits
- IRS Publication 15-B (2026), Fringe-benefit, FSA, and commuter limits
- California EDD 2026 Rates and Withholding, SDI rate and wage-limit status