How To Read Pay Stub Deduction Codes?

By Samantha Clark

Aug. 27, 2025

Human Resources

18709

You're bleeding money and don't even know it.

Most people glance at their paycheck amount and move on...

...but hidden in those cryptic deduction codes could be costly errors draining your account with every deposit.

One uncaught mistake could cost you hundreds or even thousands of dollars a year.

Ready to decode your pay stub and protect your hard-earned cash?

Table Of Contents

A Breakdown of Pay Stub Deduction Codes
Common Deduction Codes
Be Clear About Your Pay Stubs

A Breakdown of Pay Stub Deduction Codes

Deductions will be different based on an individual's tax and W-4 status. Some deductions are taken out prior to standard tax deductions. These are things like a 401K and any insurance or retirement deductions.

Other things like Federal Income Tax, Medicaid and Social Security taxes are taken out of each check automatically. These appear on every pay stub.

Each stub will include a year-to-date box that will allow you to see how much of each type of tax has been deducted for that year.

Each type of deduction includes a code that shows up on your pay stubs. These pay stub deduction codes can be confusing, as they are not always self-explanatory. To help you out, here is a list of the most common deduction codes and what they mean.

Common Deduction Codes

Your pay stub speaks in code, literally. Here's what those mysterious abbreviations actually mean:

Tax Deductions:

FED TAX - Federal Income Tax Withheld
STATE TX - State Income Tax Withheld
MEDICARE - Federal Medicare Withheld
FICA - Employees' portion of paid Social Security

Benefits & Insurance:

ERA - Educational Retirement Act Contributions
INS / MED - Insurance or medical savings deductions
SWT or FED - Federal withholding income tax deductions
LIFE - Life insurance deductions
SS or SSWT - Social Security or Social Security Tax Withheld

Key Terms:

YTD - This is the year-to-date code
GROSS - Earnings prior to deductions

While not every pay stub will be exactly the same, they will use these or a slight variation of these. Other codes exist for special deductions like retirement plans or contributions. If you're having trouble understanding them, your employer should be able to help you out.

Be Clear About Your Pay Stubs

Although pay stub deduction codes might seem confusing, knowing the basic abbreviations and what they mean will allow you to keep track of what is being deducted. If you don't typically look at your pay stubs, it might be a good idea to take a peek every once in a while just to make sure everything is in order.
ThePayStubs provides you with a way to smoothly generate your pay stub. Try it now!

Also Read:

- Common Tax Deductions or Self-Employed Write-Offs You Could Claim

- Work From Home Tax Deductions

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Frequently Asked Questions

While many deduction codes are common across employees, some codes may vary depending on an individual's specific benefits, deductions, or tax situation.

Yes, deduction codes can change if there are updates to tax laws, benefits, or other factors affecting payroll deductions. It's essential to stay informed about any changes and review your pay stubs regularly.

The meaning of specific deduction codes can often be found in your employer's payroll documentation or by contacting your company's HR or payroll department.

To learn more about pay stub deductions and codes, consult your employer's payroll documentation, ask HR or payroll department, or research online resources, such as government tax websites or payroll service providers' guides.

Pay stub deduction codes are abbreviations or codes that represent various deductions made from an employee's gross pay, such as taxes, benefits, and other contributions.

Some common pay stub deduction codes include FIT (Federal Income Tax), SIT (State Income Tax), SS (Social Security), and MED (Medicare).

A pay stub is a document provided by an employer to an employee, detailing the employee's earnings, deductions, and net pay for a specific pay period.

If you find an error in your pay stub deductions, contact your HR or payroll department as soon as possible to address the issue and have it corrected.

Deduction codes are usually found in a section labeled "Deductions" or "Taxes and Deductions" on your pay stub. They may be listed as abbreviations or codes next to the corresponding amounts.

Understanding pay stub deduction codes helps employees to verify that all deductions are correct, identify potential errors, and manage their personal finances more effectively.

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