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Decoder Ring for Your Paycheck
Your pay stub is full of abbreviations that look like secret codes. Here is what they actually mean:
- YTD (Year-to-Date): Total amount earned or deducted since January 1st of the current year.
- OASDI: Old Age, Survivors, and Disability Insurance (Social Security). Taking 6.2% of your pay.
- Med (HI): Medicare, taking another 1.45% of your pay.
- Gross Pay: What you earned before anyone touched it.
- Net Pay: What actually hits your bank account.
| Term | Meaning |
|---|---|
| YTD | Year-to-Date: total earned or deducted since Jan 1 |
| OASDI | Social Security (6.2% of pay) |
| Med / HI | Medicare (1.45% of pay) |
| Gross Pay | Earnings before any deductions |
| Net Pay | Take-home amount after deductions |
Always Check Hours
The most common mistake on hourly pay stubs is wrong hours worked. Always compare your stub against your own timesheet or log.
What to Verify on Every Pay Stub
Confirm your hours worked match your records. Check that your hourly rate is correct. Ensure overtime (if any) is calculated at 1.5x your regular rate for hours over 40 per week. Review deductions: federal, state, and local taxes; FICA; health insurance; 401(k); and any other withholdings. Errors can compound over time.
Convert Your Gross Pay to Monthly Income
Use your gross hourly rate to see your monthly salary.
Calculate My SalaryFrequently Asked Questions
Report it to HR or payroll immediately. Keep your own records. Underpayment can be corrected; overpayment may need to be repaid.
Taxes (federal, state, FICA), health insurance, 401(k), and other deductions reduce gross to net. Typically 20–30% goes to taxes and withholdings.
Federal Insurance Contributions Act. It combines Social Security (6.2%) and Medicare (1.45%)—7.65% total. Your employer pays a matching amount.
Use gross pay. For bi-weekly: multiply by 26, divide by 12. For semi-monthly: multiply by 24, divide by 12. Or use our Hourly-to-Monthly Calculator.
Keep at least 1 year of pay stubs. For tax purposes, 7 years is safer. Digital copies are fine.
Conclusion
Understanding your pay stub ensures you are paid correctly. Verify hours, rate, and deductions every pay period. Use our Hourly-to-Monthly Calculator to convert your gross hourly rate to monthly income for budgeting.