Your paystub is more than just a check—it's a detailed receipt of your earnings and taxes. However, space constraints often force payroll companies to use cryptic abbreviations. This guide translates the most common codes found on US paystubs so you know exactly where your money goes.
Important: Always review your paystub codes carefully each pay period. Catching a deduction error early can save you from tax headaches at the end of the year.
Tax Codes & Abbreviations
These codes represent mandatory government deductions. They are usually the largest deductions on your paycheck and are required by federal, state, or local laws.
| Code | Full Name | Description |
|---|---|---|
| FIT / FITW | Federal Income Tax Withheld | Tax withheld for the IRS based on your W-4. |
| OASDI / SS | Old-Age, Survivors, and Disability Insurance | Social Security tax (currently set at 6.2%). |
| MED / MCARE | Medicare | Medicare tax (currently set at 1.45%). |
| FICA | Federal Insurance Contributions Act | Combined Social Security and Medicare taxes. |
| SIT / SITW | State Income Tax Withheld | Income tax deducted for your specific state. |
| LIT / LOCAL | Local Income Tax | City, county, or municipality level taxes. |
| SDI / CASDI | State Disability Insurance | Disability insurance (required in specific states like CA). |
| FLI | Family Leave Insurance | Paid family leave funding (required in states like NJ, NY). |
Benefit & Deduction Codes
These are often voluntary deductions for benefits you've enrolled in through your employer, such as health insurance premiums or retirement plan contributions.
| Code | Full Name | Description |
|---|---|---|
| 401k / RET | 401(k) Retirement | Pre-tax retirement contribution to your employer-sponsored plan. |
| DENT | Dental Insurance | Premium deducted for dental coverage. |
| VIS | Vision Insurance | Premium deducted for vision coverage. |
| MED / HLTH | Medical / Health Insurance | Premium deducted for general health insurance. |
| HSA | Health Savings Account | Pre-tax contribution to a Health Savings Account. |
| FSA | Flexible Spending Account | Pre-tax funds set aside for qualifying medical expenses. |
| LTD | Long Term Disability | Insurance premium for long-term injury or illness coverage. |
| STD | Short Term Disability | Insurance premium for short-term injury or illness coverage. |
| GRP LIFE | Group Life Insurance | Life insurance coverage provided by your employer. |
Earnings & Pay Types
These codes explain the different ways you earned money during the specific pay period.
| Code | Full Name | Description |
|---|---|---|
| REG | Regular Pay | Standard hourly wages or salary earnings. |
| OT | Overtime | Pay for hours worked over 40 in a week (usually calculated at 1.5x your regular rate). |
| HOL | Holiday Pay | Compensation for working on company-recognized holidays. |
| VAC | Vacation Pay | Paid time off used for vacation. |
| SICK | Sick Pay | Paid time off used for illness or medical appointments. |
| BON | Bonus | Performance, sign-on, or seasonal bonus payouts. |
| COMM | Commission | Earnings based on sales performance or quotas. |
| TIPS | Tips | Gratuities received and reported to your employer. |
Common Questions About Paystub Codes
What is YTD?
YTD stands for Year-to-Date. It shows the total amount for a specific category (like Gross Pay, Federal Tax, or 401k contributions) from the beginning of the calendar year up to the current pay period. This number is crucial for verifying your annual income when applying for loans or apartments.
Why do I see FICA and OASDI?
Sometimes these taxes are listed separately, and sometimes they are combined. FICA is the federal law that mandates the tax. OASDI (Social Security) and MED (Medicare) are the specific taxes mandated by FICA. Seeing both FICA-SS and FICA-MED on the same paystub is completely normal.
What is IMP?
IMP usually stands for Imputed Income. This is the value of non-cash benefits (like group term life insurance over $50,000) that the IRS considers taxable income. It adds to your taxable wages so the government can tax it, but it doesn't actually increase your take-home cash.
Need to Create a Paystub?
Now that you understand the codes, you can make a paystub with our generator. It automatically handles all these codes, tax rates, and calculations for you—just enter your information and we'll generate professional pay stubs instantly.
Related Resources
- Understanding Paystub Deductions - Deep dive into gross pay, net pay, and what each deduction means.
- Make a Paystub - The easiest way to make professional pay stubs online.
- Create Pay Stubs - Create professional paystubs with automatic tax calculations.
- Generate Pay Stubs - Generate accurate and professional pay stubs instantly.
- Proof of Income - Learn about different income verification documents.
- Paystubs for Self-Employed - Create income documentation when you don't get traditional paystubs.
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