Paycheck deductions fall into a short list of categories: federal payroll taxes for Social Security and Medicare, federal income tax withholding, state and sometimes local income taxes, the premiums and contributions tied to any benefits you signed up for, small state-mandated contributions for disability or paid leave in certain states, and, in some cases, court-ordered garnishments. Everything between your gross pay and the amount that hits your bank account should trace back to one of those. Here is what each does and how much it typically takes.
Social Security and Medicare (FICA)
The biggest unavoidable deduction for most workers is FICA, the pair of taxes under the Federal Insurance Contributions Act. Your employer withholds these from every paycheck and sends them to the U.S. Treasury as trust fund taxes.1Internal Revenue Service. Publication 15, Employer’s Tax Guide The money funds Social Security retirement and disability benefits and Medicare hospital coverage.
Social Security is 6.2% of your gross wages. Medicare is 1.45%. Combined, that is 7.65%.2Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax Your employer pays a matching 7.65% on top, but the employer share never shows up on your stub. Social Security withholding stops once your year-to-date earnings hit the annual wage base; Medicare has no cap. For 2026, the Social Security wage base is $184,500.3Social Security Administration. Contribution and Benefit Base
Higher earners pay more. An Additional Medicare Tax of 0.9% kicks in once wages exceed $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax Your employer starts withholding the extra 0.9% automatically once your pay passes $200,000 in a calendar year, regardless of filing status. You reconcile any over- or under-payment when you file your return.5Office of the Law Revision Counsel. 26 USC 3102 – Deduction of Tax From Wages The employer does not match this surcharge.
Federal Income Tax Withholding
Your employer also withholds federal income tax from every check. The amount depends on what you reported on Form W-4 when you started your job or last updated it, combined with how much you earn per pay period.6Office of the Law Revision Counsel. 26 USC 3402 – Income Tax Collected at Source The W-4 captures your filing status, whether you have multiple jobs or dependents, and any extra withholding you request. It is the single biggest lever you have over the size of your paycheck versus the size of your refund.
Federal income tax is progressive: different slices of income are taxed at different rates. For 2026, rates run from 10% on the lowest tier up to 37% on income above roughly $648,100 for single filers or $788,000 for married couples filing jointly.7Internal Revenue Service. Publication 15-T, Federal Income Tax Withholding Methods Most workers fall in the 12% to 22% range.
Bonuses, commissions, and other supplemental pay are often withheld differently. Employers can apply a flat 22% federal withholding rate to supplemental wages instead of running them through the regular bracket calculation.7Internal Revenue Service. Publication 15-T, Federal Income Tax Withholding Methods That can feel steep if you normally sit in the 12% bracket, but withholding is only an estimate. Any over-withholding comes back as a refund.
State and Local Income Taxes
Most workers have a state income tax line too. Nine states impose no income tax on wages. Everywhere else, your employer withholds using that state’s brackets or flat rate. Rates run from below 3% in some states to above 10% in others. Some cities and counties add their own income tax, typically between a fraction of a percent and 2% to 3%.
Which state and local taxes apply depends on where you live and, in some cases, where you work. If you live in one state and commute to a job in another, both states may claim withholding rights, though many have reciprocity agreements that prevent double taxation. Check your stub if you recently moved or started working across state lines.
Health Insurance Premiums
If you enrolled in your employer’s health plan, the premium is split between you and the employer, and your share comes straight out of your paycheck. This covers medical, dental, and vision, depending on what you selected during open enrollment. Supplemental coverage like life or short-term disability insurance follows the same process. The amount stays fixed for the plan year unless you experience a qualifying life event.
The detail worth catching: when your employer offers a Section 125 cafeteria plan, your insurance premiums come out before taxes are calculated.8Office of the Law Revision Counsel. 26 USC 125 – Cafeteria Plans You skip federal income tax, Social Security tax, and Medicare tax on the money that goes toward your premium.9Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans Most employer plans use Section 125, but it is worth confirming on your stub that the deduction appears as pre-tax.
Retirement Plan Contributions
A 401(k) or 403(b) deduction is the most common voluntary line after insurance. You choose a percentage of pay or a flat dollar amount per check to route into your retirement account. For 2026, the IRS lets you defer up to $24,500 per year. Workers aged 50 and older can add an $8,000 catch-up, and those aged 60 through 63 get an even higher catch-up of $11,250.10Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500
You typically choose between traditional (pre-tax) and Roth (after-tax) contributions.11Internal Revenue Service. Retirement Topics – Contributions Traditional contributions lower your taxable income now, so income tax withholding shrinks on each paycheck. Roth contributions do not reduce current taxes, but qualified withdrawals in retirement come out tax-free. The choice comes down to whether you expect to be in a higher or lower tax bracket when you retire.
One detail catches people off guard. Unlike Section 125 insurance premiums, traditional 401(k) contributions still get hit with Social Security and Medicare taxes. Your deferral reduces federal income tax withholding, not FICA.12Internal Revenue Service. Are Retirement Plan Contributions Subject to Withholding for FICA, Medicare, or Federal Income Tax Contribute $1,000 pre-tax in a month and you save on income tax but still owe the 7.65% FICA on that $1,000.
HSA and FSA Contributions
Health Savings Accounts and Flexible Spending Accounts show up as separate line items from your insurance premium, even though they are also health-related. An HSA is available only if you are enrolled in a high-deductible health plan, and the money rolls over year after year. For 2026, you can contribute up to $4,400 with self-only coverage or $8,750 with family coverage.13Internal Revenue Service. Notice 2026-5, Expanded Availability of Health Savings Accounts HSA contributions made through payroll are pre-tax and reduce both your income tax and your FICA, the same favorable treatment as Section 125 premiums.
A health care Flexible Spending Account works similarly on taxes, but unused funds generally do not roll over (your employer may allow a small carryover or grace period). The 2026 maximum for a health care FSA is $3,400. Dependent care FSAs, which cover childcare and similar expenses, allow up to $7,500 per household in 2026, a recent increase from the longstanding $5,000 cap.14FSAFEDS. New 2026 Maximum Limit Updates Both types of FSA require you to estimate expenses during open enrollment, so it pays to be conservative rather than forfeit unspent money.
State Disability and Paid Family Leave
Depending on where you work, your stub may include a deduction for state disability insurance, paid family and medical leave, or both. More than a dozen states and the District of Columbia now run mandatory paid leave programs funded at least partly through employee payroll contributions. The deductions are usually small, often well under 1% of wages, but they are not optional in states that require them. The programs provide partial wage replacement for a serious health condition, bonding with a new child, or caring for a family member.
If you see an unfamiliar line labeled SDI, TDI, PFML, or something similar, that is almost certainly a state-mandated deduction rather than an error. Your state’s labor or employment agency website shows the exact rate and wage base. Workers in states without these programs will not see the deduction at all.
Wage Garnishments
Some deductions are neither your choice nor a standard tax. When an employer receives a court order or administrative directive, it must withhold money from your pay and send it directly to the creditor. This covers child support, alimony, defaulted federal student loans, unpaid taxes, and other court-ordered debts. The employer has no discretion and faces penalties for ignoring or miscalculating an order.
Federal law caps how much can be taken. For ordinary consumer debts, the maximum garnishment is the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage.15Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment “Disposable earnings” means pay after legally required deductions like taxes, not gross pay. Child support and alimony follow higher limits:
- 50% of disposable earnings if you are supporting another spouse or child, rising to 55% if you are more than 12 weeks behind on payments.
- 60% if you are not supporting another spouse or child, rising to 65% if more than 12 weeks in arrears.15Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment
Federal and state tax levies are exempt from these caps entirely and can take a larger share. When multiple orders land on the same employee, child support takes priority over all other creditors except an IRS tax levy that predates the support order.16Administration for Children and Families. Processing an Income Withholding Order or Notice
When a Deduction Is Not Legal
Not every subtraction an employer takes is legal. Under the Fair Labor Standards Act, an employer cannot require you to pay for uniforms, tools, or other items the employer needs you to have if doing so would drop your effective hourly rate below the federal minimum wage of $7.25, or cut into your overtime pay.17U.S. Department of Labor. Fact Sheet 16, Deductions From Wages for Uniforms and Other Facilities Under the FLSA If you earn exactly the minimum wage, your employer cannot deduct anything for uniforms or equipment.
The protection covers any cost that primarily benefits the employer: required clothing, safety equipment, tools, cash register shortages, breakage. Employers cannot get around it by asking you to reimburse them out of pocket instead of deducting from your check.17U.S. Department of Labor. Fact Sheet 16, Deductions From Wages for Uniforms and Other Facilities Under the FLSA Many states impose stricter limits on top of the federal floor, so check your state labor agency’s rules if something looks wrong. Employers must keep records of all additions to and deductions from your wages, and you have the right to review that information.18U.S. Department of Labor. Recordkeeping and Reporting
How to Check Your Pay Stub
Every line on your stub should trace back to a legal requirement or a benefits choice you made. If you see something you do not recognize, compare it against this list: FICA, federal and state income tax, insurance premiums, retirement contributions, HSA or FSA contributions, any state-mandated leave program, and any garnishment you know about. Anything beyond those categories deserves a question to your payroll department.
The most common errors are outdated W-4 information producing too much or too little withholding, insurance premiums that were not updated after a qualifying life event, and retirement contribution percentages that did not reset after an annual limit was reached. Even if the employer handles withholding correctly, incorrect W-4 information on your end can still leave you with an unexpected tax bill in April if too little was taken out during the year.