How to Read Your Paystub and Catch Errors

Learn to decode every line of your paystub and spot mistakes that could cost you money.

1. Start with the pay period and basic math. Check the pay period dates at the top of your stub. If you're paid bi-weekly, multiply your gross pay by 26 to get your annual salary. If you're paid twice monthly, multiply by 24. This basic math should match what you agreed to when hired.
2. Verify your gross pay matches your agreed salary or hourly rate. For salary workers, divide your annual salary by the number of pay periods per year. For hourly workers, multiply your hourly rate by hours worked, including any overtime at time-and-a-half. Double-check vacation time, sick days, and holiday pay are calculated correctly.
3. Check federal and state tax withholdings against your W-4. Federal income tax withholding should align with what you selected on your W-4 form. Social Security tax should be 6.2% of your gross pay, and Medicare tax should be 1.45%. State tax varies by location, but the rate should match your state's withholding tables.
4. Review all deductions line by line. Pre-tax deductions like health insurance, dental, vision, and 401k contributions should match what you enrolled in during benefits selection. Post-tax deductions might include union dues, parking fees, or charitable contributions. Every deduction should be something you authorized.
5. Compare year-to-date totals with your records. Your paystub shows cumulative earnings and deductions for the calendar year. Keep your paystubs and verify these year-to-date numbers increase correctly each pay period. These totals should match your W-2 at year-end.
6. Flag discrepancies immediately with HR or payroll. If you find errors, contact your HR department or payroll processor within one pay period. Provide documentation like your offer letter, benefits enrollment forms, or timesheets. Most employers can correct errors within 1-2 pay cycles if you catch them early.