Financial Education HubFree Member Resource
"Where Did My Money Go?"
Paystub Decoder
Your gross pay and your take-home pay are very different numbers. This guide decodes every line on your paystub, explains where each dollar actually goes, and calculates your real hourly spending power after taxes.
Paycheck
Module
Module
Enter your pay below to start
Step 1 — Read a Real Paystub
This is a sample paystub for a full-time employee earning $18/hr in West Virginia. The numbers are illustrative — your paystub may look different, but the codes are universal. Hover over any line to highlight it.
SAMPLE EMPLOYER CO. — Pay Statement
Pay Period: March 1–15, 2025 | Pay Date: March 19, 2025
Employee: Jane Sample
Check #: 00482
Earnings (Money IN)
REG ?
Regular hours — 80 hrs @ $18.00
$1,440.00YTD: $8,640.00
OT ?
Overtime — 4 hrs @ $27.00
$108.00YTD: $243.00
Gross Pay
$1,548.00
Deductions (Money OUT)
FIT ?
Federal Income Tax (Single, 0 allow.)
-$154.80YTD: -$929.00
SS ?
Social Security (FICA) — 6.2%
-$95.98YTD: -$535.68
MED ?
Medicare (FICA) — 1.45%
-$22.45YTD: -$124.88
SIT ?
WV State Income Tax — ~3.5%
-$54.18YTD: -$295.60
401K ?
401(k) Retirement — 3% pre-tax
-$46.44YTD: -$278.64
HLTH ?
Health Insurance Premium — pre-tax
-$62.00YTD: -$372.00
Total Deductions
-$435.85
NET PAY — What hits your bank account
$1,548.00 Gross − $435.85 Deductions = $1,112.15 Net
Step 2 — Decode the Codes
GROSS PAY
Your total earnings before anything is removed
Gross pay is every dollar you earned in the pay period — your hourly rate × hours worked, plus overtime, bonuses, or commissions. This is the number your employer reports.
Example: 80 hours × $18/hr = $1,440 gross pay. This is NOT what you take home.
NET PAY
Your actual take-home pay after all deductions
Net pay is what actually gets deposited into your account or handed to you as a check. It's your gross pay minus every tax and deduction. This is your real spending power.
Example: $1,548 gross − $435.85 in taxes and deductions = $1,112.15 net pay. Budget from this number only.
FICA
Federal Insurance Contributions Act
FICA is the combined Social Security (6.2%) and Medicare (1.45%) tax — a total of 7.65% that comes out of every paycheck, automatically, before anything else. Your employer pays a matching 7.65% on top.
Example: On $1,548 gross, FICA = $118.43 ($95.98 SS + $22.45 MED). You cannot avoid this — it funds future retirement and healthcare benefits.
YTD
Year-to-Date — totals from January 1 to this check
YTD shows the running total of your earnings or deductions from the start of the calendar year through the current pay period. Useful for tracking how much you've earned and how much in taxes you've paid.
Example: If this is paycheck #6 and you earned $1,548 each time, your YTD gross = $9,288. Use this column to verify your W-2 at tax time.
FIT / FWT
Federal Income Tax / Federal Withholding Tax
The federal government's income tax withheld from your check based on your W-4 filing status and allowances. It's an estimate — you settle up (refund or payment) when you file your tax return.
Example: Filing "Single, 0 allowances" withholds the most. Filing "Single, 1 allowance" means less withheld each paycheck — but you may owe at tax time.
SIT / SWT
State Income Tax / State Withholding Tax
State income tax withheld for the state where you work. West Virginia has a flat income tax rate. The amount depends on your wages and your state W-4 or exemption form.
Example: WV's tax rate on income in the $1,500–$3,000/mo range is approximately 3.5%. On $1,548, that's about $54.18 withheld for the state.
401(k) / 403(b)
Pre-tax retirement savings deduction
A portion of your gross pay set aside for retirement before taxes are calculated — meaning you reduce your taxable income. Pre-tax deductions lower your FIT and SIT, but not FICA.
Example: Putting 3% into a 401(k) on $1,548 gross = $46.44 saved for retirement. You only "feel" about $32 less in take-home because it reduced your tax bill too.
HSA / FSA
Health / Flexible Savings Account — pre-tax medical
Pre-tax money set aside for medical expenses. HSA funds roll over year to year; FSA funds typically expire. Both reduce your taxable income. "Use it or lose it" applies only to FSAs.
Example: $50/paycheck into an FSA = $1,200/year for medical expenses, paid pre-tax. At a 22% tax bracket, this saves you about $264 in federal taxes annually.
Step 3 — Your True Hourly Wage Calculator
What Do You Actually Earn Per Hour?
Your posted rate is $18/hr. But after taxes and deductions — and factoring in time spent commuting, getting ready, and winding down from work — your true hourly rate is lower. Here's the real math.
Before taxes, before anything
All taxes + insurance + retirement
Actual hours at work this period
Round trip drive / transit each day
Days you physically worked
Getting ready + decompressing after
Posted Rate
—
Gross ÷ hours worked
After-Tax Rate
—
Net pay ÷ hours worked
True Hourly Rate
—
Net ÷ (work + commute + prep)
% You Keep
—
Net ÷ gross
Where Every Dollar Goes
Take-home
Federal tax
FICA (SS+Medicare)
State tax
Benefits/Retirement
Common Paystub Codes — Quick Reference
| Code | What It Stands For | Type | Plain English |
|---|---|---|---|
| GROSS | Gross Pay | Info | Total earned before anything is removed |
| NET | Net Pay | Info | What actually hits your bank — budget from this |
| YTD | Year-to-Date | Info | Running total since January 1 — matches your W-2 |
| FIT / FWT | Federal Income Tax | Mandatory | US government income tax — based on your W-4 |
| SS / OASDI | Social Security / Old Age Insurance | Mandatory | 6.2% of gross — funds Social Security benefits |
| MED / HI | Medicare / Hospital Insurance | Mandatory | 1.45% of gross — funds Medicare for seniors |
| SIT / SWT | State Income Tax / Withholding | Mandatory | WV state income tax — varies by earnings level |
| 401K / 403B | Retirement Plan Contributions | Pre-Tax | Reduces taxable income — grows tax-deferred |
| HSA / FSA | Health / Flexible Savings Account | Pre-Tax | For medical expenses — reduces taxable income |
| HLTH / MED INS | Health Insurance Premium | Pre-Tax | Your share of employer-sponsored health coverage |
| DENTAL / VIS | Dental / Vision Insurance | Pre-Tax | Optional coverage deducted before taxes |
| LIFE / LTD | Life / Long-Term Disability Insurance | Post-Tax | Optional insurance premiums — post-tax usually |
| GARNISH | Wage Garnishment | Mandatory | Court-ordered deduction (child support, debt judgment) |
| OT / OVT | Overtime Pay | Info | Hours over 40/week at 1.5× your regular rate |
| PTO / VAC / SIC | Paid Time Off / Vacation / Sick | Info | Hours used from your accrued time-off balance |
Quick Knowledge Check
You earn $20/hr and work 80 hours. Your gross pay is $1,600. Your net pay is $1,190. What percentage of your paycheck are you keeping?
$1,190 ÷ $1,600 = 74.4%. You keep about 74 cents of every dollar earned. The other 26 cents covers federal and state taxes, FICA, and benefits.
FICA stands for Federal Insurance Contributions Act. What does your FICA deduction actually pay for?
FICA = 6.2% Social Security + 1.45% Medicare = 7.65% total. These fund retirement benefits (SS) and healthcare for seniors (Medicare). Your employer matches your FICA contribution dollar for dollar.
Your 401(k) contribution is labeled as "pre-tax." What does pre-tax mean in practice?
Pre-tax contributions come out of your gross pay before federal and state income taxes are calculated — lowering your taxable income today. You will pay income taxes on that money when you withdraw it in retirement.
Your paystub shows a YTD gross of $24,800 in June. Approximately how much should your W-2 show for the full year if your income stays the same?
$24,800 through 6 months × 2 ≈ $49,600 annual. YTD is a running total that resets to zero each January. Your W-2 in January will show the full-year YTD total — which is exactly the number you'll use on your tax return.
Fill In Your Own Paystub — My Numbers
✏️ Enter Your Numbers From Your Most Recent Pay Stub
My Take-Home Pay Calculation
1
Regular pay
+
Overtime/Bonus
=
Gross Pay:
$—
2
Gross Pay
−
All deductions
=
My NET Pay:
$—
3
Net Pay
÷
Hours worked
=
My after-tax hourly rate:
$—
💡 Tip: Set up direct deposit at Pioneer and your net pay posts the moment payroll releases it — often before 9am on payday. No waiting, no check-cashing fees. Talk to us about setting it up: (304) 342-5956.
Make Your Paycheck Work Harder
Always budget from net payGross pay is for impressing people at parties. Net pay is what you actually have. Build your 50/30/20 budget from your take-home number only.
Automate your 401(k) contributionPre-tax contributions lower your taxable income AND grow tax-deferred. If your employer matches — that's free money. Contribute at least enough to get the full match.
Review your W-4 after life changesGot married? Had a child? Changed jobs? Update your W-4 with your employer — it controls how much federal tax is withheld. Wrong withholding means a surprise tax bill or over-withheld refund.
Use direct deposit to split your payMany employers let you split direct deposit across multiple accounts. Have a set amount go straight to savings before you ever see it — automating the 20% savings rule on payday.