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
- 63
- Countries
- US and UK
- Sources cited
- 60+ official sources
Look up a line on your pay stub or payslip
- US: FICA
- US: Medicare
- US: Pre-tax deductions
- US: YTD
- US: OASDI
- US: FITW
- US: GTL
- US: Abbreviations
- US: Deductions
- UK: PAYE
- UK: 1257L
- UK: BR code
- UK: Emergency code
- UK: K code
- UK: National Insurance
- UK: Tax codes
- UK: P60 and P45
More terms, defined one per page: US payroll glossary · UK payroll glossary
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.
Your payslip explained, line by lineA 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.
Gross pay vs net payGross 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.
Pay stubs, explained
24 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.
- Gross pay vs net payGross 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.
How to make a pay stubHow 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.
How to read a pay stubHow 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.
What 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.
Pay stub abbreviations explainedWhat the abbreviations on a pay stub mean: YTD, FIT, FITW, SIT, SS, OASDI, MED, FICA, SDI, GTL and more, in one plain-English table.
What 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.
What 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.
What 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.
What 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.
Pay stub deductions explainedPay stub deductions fall into three groups: taxes, pre-tax and after-tax deductions. What each one is, and how it affects take-home pay.
What 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.
How to calculate payroll taxesHow employers calculate federal payroll taxes in 2026: income tax withholding, FICA, the employer share and FUTA, with a worked paycheck example.
How to do payroll for a small businessA 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.
Medicare tax on a paycheckHow much Medicare tax comes out of a paycheck in 2026: 1.45% on all wages, the 0.9% Additional Medicare Tax over $200,000, and the employer match.
Pre-tax deductions on a pay stubWhich pre-tax deductions lower which taxes: 401(k) versus cafeteria-plan (section 125) benefits and HSAs, with a worked 2026 paycheck.
Nanny Tax: Schedule H Guide for Household EmployersLearn when nanny tax applies, how Schedule H works, which forms you file and what to give your nanny each payday. A plain 2026 guide from PayDocs.
States Without Income Tax: What Your Paycheck ShowsLearn which US states don't tax wages in 2026, what still comes out of a paycheck there, and how to show it on a pay stub. A plain guide from PayDocs.
Pay stub requirements by stateWhich states require employers to give pay stubs and what they must show: a 50-state table checked against each state's own law, with citations.
Imputed income on a pay stub: what it is and how it's taxed (2026)Imputed income is the taxable value of a non-cash benefit, such as life cover over $50,000. Why it shows on a pay stub, how it's taxed, and an example.
Retro pay: how to calculate it and show it on a pay stubRetro pay is the difference between what an employee was paid and what they should have been paid. How to work it out, overtime included, and tax it.
Shift differential: how it's paid, how it changes overtime and how it shows on a pay stubShift differential is extra pay for evening, night or weekend shifts. How it's set, why it raises the overtime rate, a worked example and the stub line.
Wage garnishment on a pay stub: federal limits and how to show the deductionHow much of a paycheck can be garnished under federal law: disposable earnings, the 25% limit, child support, tax levies and the pay stub line.
Form W-4 for employers: what to collect and how it sets withholding (2026)An employer's guide to Form W-4 for 2026: what to collect from new hires, what to do without one, invalid and exempt forms, and how it sets withholding.
Know what goes on one? Make a pay stub
Payslips, explained
28 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.- Your payslip explained, line by lineUnderstanding 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.
UK tax codes on a payslipWhat 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.
Do 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.
How to make a payslipHow 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.
P60 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.
What is a P60?A P60 is your End of Year Certificate: the pay and tax from one job for the tax year to 5 April. What's on it, who gets one, and by when.
Tax code 1257L explainedWhat 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.
BR tax code: what it meansWhat the BR tax code means, why second jobs and pensions get it, and how much tax it takes, with a worked 2026/27 example.
Emergency tax codes: W1, M1, X and the emergency tax rateWhat an emergency tax code means, why new jobs get one, how W1, M1 and X change your tax, and how to get back on the right code.
K tax codes explainedWhat 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.
0T tax code: what it meansWhat the 0T tax code means, why you might have it, how much tax it takes from your pay, and how to get the right code from HMRC.
National Insurance rates 2026/27Employee and employer Class 1 National Insurance rates and thresholds for 2026/27, weekly, monthly and yearly, with worked examples.
Free payroll software in the UK, and where payslips fitHMRC's free Basic PAYE Tools for employers with fewer than 10 employees: what it does, what payroll software must do, and how to produce payslips.
Payslip software for small UK employers: three options and pricesPayslip software for small UK employers: full payroll software, HMRC's free Basic PAYE Tools or a payslip-only tool. What each does and costs (3 Oct 2026).
D0 tax code: what it meansWhat the D0 tax code means, why second jobs get it, how it shows on a payslip and how much tax it takes in 2026/27, plus SD0 in Scotland.
S1257L tax code: Scottish rates explainedWhat the S1257L tax code means, Scotland's six income tax bands for 2026/27, and how it changes tax on a payslip, with worked monthly examples.
D1 tax code: what it meansWhat the D1 tax code means, when HMRC uses it, how it's applied on a payslip at 45% in 2026/27, and what to check if it looks wrong.
NT tax code: what it meansWhat the NT tax code means, who HMRC gives it to, how a payslip shows it, and why National Insurance can still be deducted.
C1257L tax code: Welsh rates explainedWhat the C1257L tax code means, the Welsh income tax rates for 2026/27, and why a payslip on C1257L shows the same tax as 1257L this year.
Statutory Maternity Pay on a payslipHow employers work out Statutory Maternity Pay for 2026/27, show it on a payslip, deduct tax and NI, and reclaim 92% or 109% from HMRC.
Statutory Paternity Pay on a payslipStatutory Paternity Pay for 2026/27: rate, who qualifies, how to show it on a payslip, plus Shared Parental and Adoption Pay, and what you reclaim.
SSP on a Payslip: How to Show Statutory Sick PayLearn how to work out Statutory Sick Pay, show it on a payslip and deduct tax and National Insurance, with worked examples for employers from PayDocs.
P45 Form: An Employer's Guide for When Staff LeaveLearn what a P45 is, when you must give one, what each part is for and how the final payslip fits in. A plain guide for small UK employers from PayDocs.
National Minimum Wage 2026: UK rates from 1 April 2026UK minimum wage from 1 April 2026: £12.71 at 21 and over, £10.85 at 18 to 20, £8 under 18 and for apprentices, with yearly pay and accommodation offset.
Student loan deductions on a payslip: Plans 1, 2, 4, 5 and postgraduate (2026/27)Student loan deductions for 2026/27: Plan 1, 2, 4 and 5 thresholds, 9% and 6% rates, how payroll works them out each payday and how they show on a payslip.
Attachment of earnings orders on a payslip: what employers deductHow a court attachment of earnings order works for employers: protected earnings, priority orders, the £1 admin fee, ranking with a DEO, the payslip.
Deduction from earnings orders (DEOs): an employer's guideHow a Child Maintenance Service DEO works for employers: net earnings, 60% protected earnings, the £1 fee, payment by the 19th, payslips and leavers.
Know what goes on one? Make a payslip
For the people who pay people
11 articles
Pay stubs for small businessesMake clear pay stubs for your employees without a payroll subscription. Enter each period’s figures and preview the stub as you type.
Pay stubs for nannies and household employeesPaying a nanny, caregiver or housekeeper? Make a clear pay stub each payday from your own figures, and see what the IRS says.
Pay stubs for the self-employed: when you need oneSelf-employed with an S corporation, or an LLC taxed as one, that pays you through payroll? Your wages get a pay stub; sole proprietors don’t. IRS rules.
1099 pay stub generator for contractorsMake the Form 1099-NEC you give a contractor, free to preview. Why contractors get an invoice and payment record instead of a pay stub.
Pay stubs for restaurants and bars: tips, tip credit and overtimeMake pay stubs for servers, bartenders and kitchen staff: the cash wage, card and cash tips, the tip credit and tipped overtime on their own lines.
Pay stubs for construction and trades: multiple rates, per diem and certified payrollPay stubs for construction crews: hours at each job rate, overtime on the blended rate, per diem kept out of taxable pay, and where certified payroll fits.
Pay stubs for churches and nonprofits: housing allowance, ministers and FICAPay stubs for churches and nonprofits: a minister's housing allowance line, why ministers have no FICA withheld, church staff, and the 501(c)(3) FUTA rule.
Payslips for nannies and household staffEmploying a nanny, carer or housekeeper? You must give them a payslip each payday. Make one from your payroll, and see what GOV.UK requires.
Payslips for the self-employed: when you need oneRun your own limited company and pay yourself a salary through PAYE? That salary gets a payslip. Sole traders don’t. Which applies to you, from GOV.UK.
Payslips for company directorsPaying yourself a director’s salary through PAYE? How directors’ National Insurance works on an annual basis in 2026/27, and how to make the payslip.
Payslips for small businessesRunning payroll for a few employees? Your duties in order, from registering as an employer to P60s, and how to give clear payslips each payday.
Sources
Every publisher our guides cite (64)
app.leg.wa.gov, apps.legislature.ky.gov, assets.publishing.service.gov.uk, cdle.colorado.gov, code.dccouncil.gov, codes.ohio.gov, comptroller.texas.gov, delcode.delaware.gov, DOL, dol.ny.gov, dor.sd.gov, dor.wa.gov, dwd.wisconsin.gov, dws.wyo.gov, eCFR, efte.twc.texas.gov, erd.dli.mt.gov, floridarevenue.com, gc.nh.gov, GOV.UK, GSA, iga.in.gov, ilga.gov, IRS, ksrevisor.gov, labor.alaska.gov, labor.hawaii.gov, labor.maryland.gov, labor.wv.gov, law.lis.virginia.gov, le.utah.gov, leginfo.legislature.ca.gov, legislation.gov.uk, legislature.idaho.gov, legislature.maine.gov, malegislature.gov, nebraskalegislature.gov, paidleave.wa.gov, paysliper.com, pub.njleg.gov, revenue.support.tn.gov, revisor.mo.gov, SSA, tax.alaska.gov, tax.nv.gov, wacaresfund.wa.gov, webserver.rilegislature.gov, www.azleg.gov, www.cga.ct.gov, www.flsenate.gov, www.leg.state.nv.us, www.legis.iowa.gov, www.makepayslip.co.uk, www.michigan.gov, www.ncleg.gov, www.nd.gov, www.nidirect.gov.uk, www.oklegislature.gov, www.oregonlegislature.gov, www.pacodeandbulletin.gov, www.revenue.nh.gov, www.revisor.mn.gov, www.scstatehouse.gov, www.wyo.gov