What Is a Pay Stub?
A pay stub (also called a pay statement or earnings statement) is the document that accompanies every paycheck, showing you exactly how your gross pay was calculated and where every dollar of deductions went. New York State requires employers to provide pay stubs on each payday.
The Anatomy of an NYC Pay Stub
Section 1: Earnings
The top section shows your pay for the current period and year-to-date (YTD).
- Regular Pay / Base Pay: Your straight-time earnings for the pay period. For salaried workers, this is your annual salary ÷ pay periods. For hourly workers, it's hours × hourly rate.
- Overtime Pay: Hours worked beyond 40 in a week, paid at 1.5× your regular rate. Taxed at the supplemental wage rate.
- Bonus / Commission: Additional earnings. Federal taxes on supplemental wages are withheld at a flat 22% (or 37% above $1 million).
- Gross Pay: The total of all earnings before any deductions.
Section 2: Taxes Withheld
This is the largest section for most NYC workers — you'll typically see four separate tax lines:
| Line on Pay Stub | What It Means | Typical Rate |
|---|---|---|
| Federal Income Tax / FIT | US federal income tax based on your W-4 and bracket | 10%–37% (marginal) |
| Social Security / OASDI | Part of FICA; funds Social Security benefits | 6.2% (up to $176,100) |
| Medicare / MED | Part of FICA; funds Medicare | 1.45% (all wages) |
| NY State Income Tax / SIT | New York State income tax | 4%–10.9% (marginal) |
| NYC Local / NYC Tax | New York City resident income tax | 3.078%–3.876% |
| NY SDI / Disability | NY State Disability Insurance (small deduction) | $0.60/week max |
| NY PFL / Family Leave | NY Paid Family Leave premium | ~0.373% of wages (2026) |
Why does the NYC Tax line appear on my stub? Your employer withholds it if your address on file is in one of the five boroughs. If you move out of NYC mid-year, update your address with HR immediately to stop the withholding.
Section 3: Pre-Tax Deductions
These reduce your taxable income before taxes are calculated — meaning you pay less in all taxes:
- 401(k) / 403(b) / TSP: Retirement savings contributions. Up to $23,500 in 2026 ($31,000 if 50+).
- Medical / Dental / Vision premiums: Your share of employer-sponsored health insurance.
- FSA (Healthcare): Flexible Spending Account contributions, up to $3,300.
- HSA: Health Savings Account contributions (only with HDHP plans).
- Commuter Benefits: Up to $325/month pre-tax for transit passes — very valuable in NYC.
Section 4: Post-Tax Deductions
These are taken after taxes are calculated, so they don't reduce your tax burden:
- Roth 401(k): After-tax retirement contributions (no tax break now, tax-free in retirement).
- Life / AD&D insurance: Voluntary insurance premiums above employer-provided coverage.
- Wage garnishments: Court-ordered deductions for child support, student loans in default, etc.
- Union dues: If applicable.
Section 5: Summary
- Net Pay: Your actual take-home — gross pay minus all taxes and deductions.
- YTD Gross: Total gross earnings so far this calendar year.
- YTD Taxes: Total taxes withheld so far this year — useful for checking if you're on track.
Common Pay Stub Mistakes to Watch For
- Incorrect address: If your address still shows NYC but you moved, you're overpaying local tax. Contact HR.
- Wrong filing status: Check that your W-4 status matches your current situation (single, married, etc.).
- Missing deductions: If you enrolled in a 401(k) or FSA but don't see the deduction, follow up with payroll.
- Extra Medicare tax: If you earn over $200,000, you should see an additional 0.9% Medicare surcharge line.
Understanding YTD Figures
The Year-to-Date column is powerful. By mid-year, you can estimate your annual tax liability and see whether you're on track. If your YTD federal tax at mid-year is much lower than expected, you may owe a balance due in April — consider adjusting your W-4 withholding.
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