Pay stubs and payslips, explained
What each line means, how the numbers fit together, and who needs one. Short answers first, with the official sources behind them.
- Articles
- 32
- Countries
- US and UK
- Sources cited
- DOL, IRS, SSA, GOV.UK
Look up a line on your pay stub or payslip
New to pay stubs or payslips?
Three reads that cover the basics.
What is a pay stub?
A pay stub is a statement given with each paycheck that shows how the pay was worked out: gross earnings for the period, each tax and deduction taken out, and the net pay the employee actually received, usually with year-to-date totals. It is also called a paycheck stub, check stub or earnings statement.
Read the guideYour payslip explained, line by line
A UK payslip shows your pay before and after deductions for one pay period. Read it from top to bottom: your details, tax code and National Insurance number; your gross pay; each deduction such as PAYE Income Tax, National Insurance and pension; then net pay, the amount paid to you. Year-to-date figures show the tax year so far.
Read the guideGross pay vs net pay
Gross pay is the total an employee earns in a pay period before anything is taken out. Net pay, often called take-home pay, is what is left after taxes and other deductions are subtracted. On a pay stub, gross pay sits at the top of the calculation and net pay at the bottom.
Read the guide
Pay stubs, explained
14 articles
What is a pay stub?
A pay stub shows earnings, deductions and net pay for one pay period. What’s on one, and whether US employers must give one.
ReadGross pay vs net pay
Gross pay is what you earn before anything is taken out; net pay is what you receive. How to get from one to the other, with a worked example.
ReadHow to make a pay stub
How to make a pay stub from your payroll record: the information to gather, the order to put it in, and the checks to make before you hand it over.
ReadHow to read a pay stub
How to read a pay stub from top to bottom: where to find gross pay, what each deduction is, how net pay is reached and what the year-to-date column means.
ReadWhat is an earnings statement?
An earnings statement is another name for a pay stub: pay, taxes and deductions for one period. What it shows, and how it differs from a W-2.
ReadPay stub abbreviations explained
What the abbreviations on a pay stub mean: YTD, FIT, FITW, SIT, SS, OASDI, MED, FICA, SDI, GTL and more, in one table.
ReadWhat is OASDI on a pay stub?
OASDI on a pay stub is the Social Security tax withheld from your pay. What the letters mean, and how it relates to FICA and Medicare.
ReadWhat is FITW on a pay stub?
FITW means federal income tax withheld. How it’s worked out from your Form W-4, why it changes between paychecks, and how to change it.
ReadWhat is GTL on a pay stub?
GTL on a pay stub is the taxable value of group-term life insurance above $50,000 of cover. Why it’s added to your wages but not paid to you.
ReadWhat does YTD mean on a pay stub?
YTD on a pay stub means year to date: the running total since January 1 for each earning, tax and deduction. How to read and check it.
ReadPay stub deductions explained
Pay stub deductions fall into three groups: taxes, pre-tax and after-tax deductions. What each one is, and how it affects take-home pay.
ReadWhat is FICA tax?
FICA is social security and Medicare tax. The 2026 rates, the $184,500 wage base, the Additional Medicare Tax and what employers pay, with examples.
ReadHow to calculate payroll taxes
How employers calculate federal payroll taxes in 2026: income tax withholding, FICA, the employer share and FUTA, with a worked paycheck example.
ReadHow to do payroll for a small business
A step-by-step federal payroll checklist for small businesses: EIN, W-4 and I-9, pay schedule, withholding, deposits, Forms 941 and 940, and pay stubs.
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Know what goes on one? Make a pay stub
Payslips, explained
12 articles
What is PAYE on a payslip?
PAYE on a payslip is the Income Tax your employer takes from your pay for HMRC. What it means, how your tax code affects it, and more.
ReadYour payslip explained, line by line
Understanding your payslip: what each part of a UK payslip means, from tax code and NI number to gross pay, deductions, net pay and year-to-date totals.
ReadUK tax codes on a payslip
What the tax code on your payslip means: the numbers, the letters (L, M, N, T, BR, D0, D1, NT, K, S, C) and emergency codes, as defined by GOV.UK.
ReadDo employers have to give payslips?
Yes: UK employers must give employees a payslip on or before payday. What it must show, electronic payslips, and who is not covered, from GOV.UK.
ReadHow to make a payslip
How to make a payslip from your payroll: what it must show, the details to gather, the steps in order and the checks to make before payday.
ReadP60 vs P45: what’s the difference?
A P60 shows the tax paid on your salary over the tax year; a P45 comes when you leave a job. What each shows, and when you get it.
ReadTax code 1257L explained
What tax code 1257L means, how much tax-free pay it gives, and what it leaves you with each month in 2026/27, with worked examples.
ReadBR tax code: what it means
What the BR tax code means, why second jobs get it, and how much tax it takes, with a worked 2026/27 example.
ReadEmergency tax codes: W1, M1 and X
What an emergency tax code means, why new jobs get one, how W1 and M1 change your tax, and how to get off it.
ReadK tax codes explained
What a K tax code means, why it adds to your taxable pay instead of giving a tax-free amount, and the 50% limit, with a worked example.
Read0T tax code: what it means
What the 0T tax code means, why you might have it, how much tax it takes and how to get the right code.
ReadNational Insurance rates 2026/27
Employee and employer Class 1 National Insurance rates and thresholds for 2026/27, weekly, monthly and yearly, with worked examples.
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Know what goes on one? Make a payslip
For the people who pay people
6 articles
Pay stubs for small businesses
Make clear pay stubs for your employees without a payroll subscription. Enter each period’s figures and preview the stub as you type.
ReadPay stubs for nannies and household employees
Paying a nanny, caregiver or housekeeper? Make a clear pay stub each payday from your own figures, and see what the IRS says.
ReadPay stubs when you’re self-employed
Most self-employed people don’t get pay stubs. If you pay yourself a salary through your own corporation, you do. What applies to you, honestly explained.
ReadPay stubs for 1099 contractors
Independent contractors usually don’t get pay stubs, because no tax is withheld. What 1099 contractors get instead, and who is an employee.
ReadPayslips for nannies and household staff
Employing a nanny, carer or housekeeper? You must give them a payslip each payday. Make one from your payroll, and see what GOV.UK requires.
ReadPayslips when you’re self-employed
Self-employed people don’t usually get payslips. Directors paid a salary by their own limited company do. Which applies to you, from GOV.UK.
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