Gross pay is what you earned before anything leaves. Net pay is what lands in your checking account after taxes, benefits, and court or agency orders. The gap is not one mystery fee—it is a stack of lines on the stub. Line-by-line geography of a typical stub: How to read your pay stub.
This guide sorts the common deduction buckets so you can budget from net pay and spot mistakes after a raise, open enrollment, or a legal notice.
The main buckets
| Bucket | Examples | Usually pretax or post-tax? |
|---|---|---|
| Federal income tax | Form W-4 elections | Withholding (not a “fee”); settles up at filing |
| FICA | Social Security, Medicare | Required payroll taxes on covered wages |
| State / local | State income tax, some city taxes | Varies by where you work and live |
| Benefits | Medical premiums, dental, vision, FSA, HSA, 401(k) | Often pretax under a cafeteria / Section 125 plan |
| Garnishments / levies | Child support, tax levy, judgment creditor | Post-tax; employer follows a legal order |
Pretax benefit elections often sit inside a flexible benefit cafeteria plan. HSA and FSA mechanics: HSA and FSA basics.
Taxes vs benefits vs orders
Tax withholding is an estimate toward your annual bill. A large refund or balance due often means the W-4 (and state equivalent) needs a refresh—not that payroll “stole” money. Year-end pairing with forms: Filing taxes for beginners.
Benefit deductions are amounts you elected (or defaults your employer applied). After open enrollment, re-read the next two stubs. Premiums and FSA amounts should match the benefit confirmation, not hallway rumor.
Garnishments and levies are not optional elections. If a new line appears labeled support, creditor, or IRS, verify the order with payroll and read How wage garnishment works before you assume a scam call is legitimate.
Worked example
Alex’s biweekly gross is $2,400.
| Line | Amount |
|---|---|
| Federal income tax | $220 |
| Social Security + Medicare (FICA) | $183.60 |
| State income tax | $95 |
| Medical premium (pretax) | $85 |
| Traditional 401(k) 5% | $120 |
| Total deductions | $703.60 |
| Net direct deposit | $1,696.40 |
Alex budgets from $1,696.40, not $2,400. After open enrollment the medical premium rises to $110. The next stub’s net should drop by about $25 before any tax-withholding side effects. For biweekly calendars with “three-paycheck months,” see Paycheck budgeting for biweekly pay.
Common confusion points
- Box 1 W-2 wages often differ from “gross forever” because pretax benefits reduce taxable wages.
- Employer 401(k) match is not a deduction from your check; it is a separate contribution.
- Advance apps and split deposits can make the bank credit look different from stub net—reconcile both.
- Estimated taxes for 1099 side work never appear on a W-2 stub; keep a separate reserve.
Checklist
- Circle net pay and pay date; use those for the spending plan.
- Label each deduction as tax, benefit, retirement, or order.
- After W-4 or benefits changes, re-check the next two stubs.
- Match medical/FSA/HSA amounts to the benefit confirmation.
- Investigate unexpected garnishments with payroll using official documents.
- Save stub PDFs for tax season and payroll disputes.
Educational only. Not tax, payroll, or legal advice. Stub layouts and withholding rules vary by employer and jurisdiction.