What Is a Year-End Pay Stub? W-2 Match and Box 1 Gaps

A year-end pay stub is the last earnings statement you receive for the calendar year, and it works as a full-year summary of your pay. Unlike a regular stub that covers one pay period, this one carries a Year-to-Date (YTD) column that adds every paycheck from January through December into a single set of totals: gross pay, federal income tax withheld, Social Security and Medicare taxes, and every pre-tax deduction. You usually receive it with your last December paycheck or your first one in January, and it’s the document you’ll use to check your W-2 before filing.

What the Year-to-Date Column Actually Shows

The YTD section on your final stub is organized into a handful of categories. Knowing what each one contains makes it easier to spot a payroll mistake before it flows onto your tax forms.

Gross Pay

Gross pay is everything your employer paid you before any subtraction: regular wages or salary, overtime, bonuses, commissions, and taxable fringe benefits. Two fringe benefits that commonly land here are personal use of a company vehicle and employer-provided group-term life insurance above $50,000 in coverage.1IRS. Employer’s Tax Guide to Fringe Benefits (Publication 15-B) Their taxable value is added to gross pay even though no cash changed hands.

Federal Income Tax Withheld

Federal withholding is based on the Form W-4 you filed, including your filing status, dependents, and any extra amount you asked to have taken out.2Internal Revenue Service. Form W-4 (2026) Employee’s Withholding Certificate If you updated the W-4 mid-year after a marriage, a new child, or a second job, your withholding rate changed partway through, which is exactly why the annual total on the year-end stub matters.

Social Security and Medicare (FICA)

Social Security tax is 6.2% of wages up to the annual wage base, which is $184,500 for 2026.3Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax4Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet Once you cross that cap, no more Social Security tax comes out for the rest of the year. Medicare tax is 1.45% on all wages with no cap. If your wages went over $200,000, your employer also withheld an Additional Medicare Tax of 0.9% on the amount above that threshold.5Internal Revenue Service. Topic No. 560, Additional Medicare Tax Each of these should appear as its own YTD line.

Pre-Tax Deductions

Certain contributions come out of your pay before income tax is calculated, which lowers your taxable wages. Common ones on a year-end stub include:

Each should show a separate YTD total. These deductions directly reduce the taxable wages your employer reports to the IRS, which is why the gross pay on your stub and the wages on your W-2 will not match.

Net Pay

Net pay is what actually reached your account after every tax and deduction came out. The YTD net pay on your final stub is your total take-home for the year, and comparing it with YTD gross pay shows exactly how much went to taxes, benefits, and savings.

Why Your Gross Pay Won’t Match W-2 Box 1

The gap between the gross pay on your year-end stub and the wages in Box 1 of your W-2 is normal. Box 1 reports only federally taxable wages, so your employer has already subtracted pre-tax items like 401(k) contributions, HSA contributions, cafeteria-plan insurance premiums, and FSA contributions before printing that figure.8Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3

To reconcile the two, start with YTD gross pay and subtract each pre-tax deduction listed on the stub. The result should land on or very near Box 1. If it doesn’t, flag the difference with payroll before the filing window closes.

Social Security wages in Box 3 follow different rules. Your 401(k) deferrals are still subject to Social Security tax, so Box 3 is often higher than Box 1, but it cannot exceed the $184,500 wage base for 2026.8Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3 Medicare wages in Box 5 have no cap and generally show the broadest measure of your earnings.

Checking Your Year-End Stub Against Your W-2

Your employer must deliver your W-2 by January 31.9Office of the Law Revision Counsel. 26 USC 6051 – Receipts for Employees When it arrives, run the YTD figures on your final stub against these boxes:

  • Box 1 (Wages, tips, other compensation): YTD gross pay minus pre-tax deductions.
  • Box 2 (Federal income tax withheld): YTD federal income tax on the stub.
  • Box 3 (Social Security wages): YTD Social Security wages, capped at $184,500.
  • Box 4 (Social Security tax withheld): 6.2% of Box 3.
  • Box 5 (Medicare wages): YTD Medicare-taxable earnings.
  • Box 6 (Medicare tax withheld): 1.45% of Box 5, plus 0.9% on any wages above $200,000.
  • Box 12: coded entries such as 401(k) contributions (Code D), HSA contributions (Code W), and the taxable cost of group-term life insurance over $50,000 (Code C).1IRS. Employer’s Tax Guide to Fringe Benefits (Publication 15-B)

When every number lines up, your employer’s payroll matches your records and filing should be straightforward. When something doesn’t line up, fix it before you file.

If the W-2 Is Wrong or Doesn’t Arrive

Contact payroll as soon as you spot a mismatch. If the employer confirms an error, they must file Form W-2c with the Social Security Administration and give you a copy.10Internal Revenue Service. About Form W-2c, Corrected Wage and Tax Statements Filing with bad W-2 data can trigger an IRS notice when your return doesn’t match what your employer reported.

If January 31 passes with no W-2, ask your employer first. If it still hasn’t arrived by the end of February, call the IRS at 800-829-1040 or visit a Taxpayer Assistance Center. The IRS will contact the employer and give them ten days to send it.11Internal Revenue Service. W-2 – Additional, Incorrect, Lost, Non-Receipt, Omitted

If it still doesn’t come in time, the IRS provides Form 4852 as a substitute W-2. You fill it in using your best estimates of wages and withholding, and the IRS specifically points to the YTD figures on your final pay stub as the source for those estimates.11Internal Revenue Service. W-2 – Additional, Incorrect, Lost, Non-Receipt, Omitted Filing with Form 4852 can slow your refund while the IRS verifies what you submitted.

Using It Outside of Tax Season

Because the year-end stub captures every dollar you earned, including bonuses, overtime, and commissions, mortgage lenders often ask for it during underwriting. Auto lenders and landlords use it for the same reason: it shows twelve months of earnings instead of a single-month snapshot.

It also gives you a clean view of your own budget. Set YTD gross pay next to YTD net pay and you can see, in one line, what share of your income went to taxes, retirement, and insurance. That’s the number to work from when you decide whether to change your W-4 withholding, raise your 401(k) contribution, or rethink your benefit elections at open enrollment.

How Long to Keep It

The IRS recommends holding records that support your return until the statute of limitations runs out — three years from filing or two years from paying the tax, whichever is later.12Internal Revenue Service. How Long Should I Keep Records? If you underreport income by more than 25% of the gross income shown on the return, the IRS has six years to assess more tax. Employment tax records should be kept for at least four years.

Because a year-end pay stub backs up your W-2 and can be used to reconstruct a missing or wrong one years later, keeping it for at least three to four years is a sensible baseline. Scanned copies count, so a digital file folder does the job.