Pay Stub Abbreviations Explained: A Complete Guide
If you have ever looked at your pay stub and felt like you were reading a foreign language, you are not alone. Pay stubs are packed with abbreviations and codes that can be confusing at first glance. Understanding what each abbreviation means is the first step to making sure your pay is accurate and knowing exactly where your money is going.
This guide breaks down every common abbreviation you will encounter on a pay stub, organized by category.
Why Pay Stubs Use Abbreviations
Pay stubs use abbreviations for practical reasons. There is limited space on a pay stub, especially a printed one, and payroll systems need standardized codes to categorize earnings and deductions consistently. These abbreviations are an industry standard used by payroll software, accounting departments, and HR teams across the country. Once you learn the most common ones, you will be able to read any pay stub with confidence.
Earnings Abbreviations
The earnings section of your pay stub shows how much money you made before any deductions. Here are the abbreviations you will typically see:
| Abbreviation | Meaning |
|---|---|
| REG | Regular Pay — your standard wages for hours worked at your normal rate |
| OT | Overtime — pay for hours worked beyond 40 per week, typically at 1.5x your regular rate |
| HOL | Holiday Pay — compensation for working on a recognized holiday or holiday pay benefit |
| PTO | Paid Time Off — wages paid for approved vacation, personal, or sick days |
| BONUS | Bonus Pay — supplemental compensation such as performance bonuses or signing bonuses |
| COMM | Commission — earnings based on sales or performance metrics |
| YTD | Year to Date — the cumulative total from January 1 through the current pay period |
| GROSS | Gross Pay — the total of all earnings before any deductions are taken out |
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Tax deductions are the amounts withheld from your paycheck and sent to federal, state, and local tax authorities on your behalf. These are mandatory and based on your W-4 elections and tax bracket.
| Abbreviation | Meaning |
|---|---|
| FIT / FWT | Federal Income Tax / Federal Withholding Tax — the amount withheld for federal income taxes based on your W-4 and tax bracket |
| SIT / SWT | State Income Tax / State Withholding Tax — the amount withheld for your state's income tax (not all states have this) |
| FICA | Federal Insurance Contributions Act — the combined Social Security and Medicare taxes (7.65% total for employees) |
| OASDI | Old Age, Survivors, and Disability Insurance — the official name for Social Security tax, withheld at 6.2% of gross wages up to the annual cap |
| MED | Medicare — the Medicare tax withheld at 1.45% of all gross wages, with an additional 0.9% on wages over $200,000 |
| SDI | State Disability Insurance — a state-level tax that funds short-term disability benefits (required in states like CA, NJ, NY, HI, RI) |
| SUI | State Unemployment Insurance — a state tax that funds unemployment benefits (usually paid by employers, but some states withhold from employees) |
| LIT | Local Income Tax — income tax imposed by a city, county, or municipality |
Benefit and Voluntary Deduction Abbreviations
Voluntary deductions are the amounts taken from your paycheck for benefits you have elected, such as retirement savings and insurance premiums. These are deducted before or after taxes depending on the type of benefit.
| Abbreviation | Meaning |
|---|---|
| 401K | Retirement Contribution — your pre-tax or Roth contribution to a 401(k) retirement plan |
| HSA | Health Savings Account — pre-tax contributions to a health savings account (requires a high-deductible health plan) |
| FSA | Flexible Spending Account — pre-tax contributions to a flexible spending account for medical or dependent care expenses |
| DEN / DENT | Dental Insurance — your share of the dental insurance premium |
| VIS | Vision Insurance — your share of the vision insurance premium |
| MED INS | Medical Insurance Premium — your share of the medical/health insurance premium |
| GTL | Group Term Life Insurance — employer-provided life insurance (amounts over $50,000 in coverage are taxable) |
| LTD | Long-Term Disability — premiums for long-term disability insurance coverage |
| STD | Short-Term Disability — premiums for short-term disability insurance coverage |
| GARN | Garnishment — court-ordered deductions for child support, unpaid taxes, student loans, or other debts |
| UNION | Union Dues — membership fees for a labor union |
Other Common Abbreviations
You may also see these general abbreviations on your pay stub:
| Abbreviation | Meaning |
|---|---|
| NET | Net Pay — your take-home pay after all deductions (the amount deposited into your bank account) |
| DD | Direct Deposit — indicates payment was sent electronically to your bank account |
| EE | Employee — refers to the employee's share of a cost or contribution |
| ER | Employer — refers to the employer's share of a cost or contribution |
| HRS | Hours — the number of hours worked during the pay period |
| RATE | Pay Rate — your hourly wage or salary rate |
| DEPT | Department — the department or division you work in |
How to Read Your Pay Stub Using These Abbreviations
Now that you know what the abbreviations mean, here is how to put it all together. When you look at your pay stub, start with the earnings section at the top. Find your REG pay and any additional earnings like OT, BONUS, or COMM. Add them up, and the total should match your GROSS pay.
Next, look at the deductions section. You will see mandatory tax deductions (FIT, SIT, OASDI, MED) and voluntary deductions (401K, MED INS, DEN, etc.). Subtract all deductions from your gross pay, and you should arrive at your NET pay — the amount that hits your bank account.
Finally, check the YTD column. This running total helps you track your cumulative earnings and deductions for the year, which is useful for budgeting, tax planning, and verifying your W-2 at the end of the year.
If you see an abbreviation you do not recognize, ask your HR department or payroll provider. Every company's payroll system may use slightly different codes, but the ones listed in this guide cover the vast majority of what you will encounter.
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