When payday arrives, most employees simply verify that the final direct deposit amount matches their expectations. However, taking a few minutes to inspect your actual itemized pay stub (earnings statement) is one of the most effective habits for safeguarding your finances and catching costly payroll errors early.
Whether your Texas employer uses major payroll providers like ADP, Gusto, Paychex, or Workday, modern pay stubs contain an alphabet soup of abbreviations: OASDI, MED, FIT, YTD, and PRE-TAX.
Because Texas has no state income tax, your Texas pay stub should look noticeably cleaner than pay stubs from high-tax states. In this line-by-line guide, we decode every section of your Texas earnings statement and show you how to cross-reference each figure with our Texas Paycheck Calculator.
The Four Core Sections of a Texas Pay Stub
Regardless of whether your pay stub is printed on paper or accessed via an online employee portal, it is divided into four main sections:
- General Employee & Pay Period Information
- Gross Earnings & Hours Breakdown
- Taxes & Statutory Withholdings
- Voluntary Deductions & Year-to-Date (YTD) Summary
Let’s examine each section in detail.
1. General & Pay Period Details
At the top of your stub, you will find identifying information that establishes legal compliance under the Texas Payday Law:
- Pay Period Dates: The specific timeframe during which you performed the work (e.g., Jan 1, 2026 – Jan 14, 2026).
- Pay Date: The actual date funds were transferred or the check was issued (e.g., Jan 22, 2026).
- Filing Status & W-4 Settings: Displays your federal tax filing status (Single, Married Joint, Head of Household) and dependent credit amounts as entered on your IRS Form W-4.
Pro Tip: If you recently had a child, got married, or submitted a new W-4, check this section to ensure payroll updated your records!
2. Gross Earnings Breakdown
This section lists all forms of compensation earned during the pay cycle before any taxes or deductions are subtracted:
| Line Item Name | Meaning & Calculation |
|---|---|
| Regular / Base Pay | Your standard salaried rate or regular hourly wage multiplied by regular hours worked (up to 40 hours/week). |
| Overtime (1.5x) | Hours worked over 40 in a workweek, compensated at 1.5 times your regular rate under FLSA guidelines. |
| Double Time (2.0x) | Premium pay for holidays or specific union contracts (optional in Texas). |
| Commission / Bonus | Supplemental wages paid for sales achievements or performance incentives. |
| PTO / Sick / Holiday | Paid time off hours used during the pay period. |
| Total Gross Pay | The total cumulative sum of all earnings earned during the pay period. |
3. Taxes & Statutory Withholdings (The Government Deductions)
This is the section where mandatory federal deductions are itemized. On a Texas pay stub, you will see three primary federal tax entries:
1. Fed Withholding / FIT (Federal Income Tax)
- What it is: Income tax withheld on behalf of the IRS based on your taxable wages, standard deduction, and Form W-4 elections.
- How it works: Calculated using progressive federal brackets (10% to 37%).
2. OASDI / Fed OASDI / Social Security
- What it is: The Old-Age, Survivors, and Disability Insurance portion of the Federal Insurance Contributions Act (FICA).
- The Rate: Exactly 6.20% of your gross wages up to the 2026 statutory wage cap of $176,100.
- Milestone: Once your Year-to-Date earnings reach $176,100, this line drops to $0.00 for the rest of the calendar year!
3. Fed MED / Medicare
- What it is: The Hospital Insurance portion of FICA.
- The Rate: Exactly 1.45% on all gross wages with no annual cap.
- High Earner Surtax: If your earnings surpass $200,000 (single) or $250,000 (married), you will see an Additional Medicare Tax of 0.90% applied to wages above the threshold.
4. Texas State Withholding: $0.00
- Under Article 8 of the Texas Constitution, Texas charges 0% personal income tax.
- Red Flag: If you see any deduction labeled “TX State Tax” or “State Withholding” on a Texas resident stub, contact your payroll administrator immediately—this is an accounting error!
4. Pre-Tax vs. Post-Tax Benefit Deductions
Beneath taxes, you will find voluntary benefit deductions:
Pre-Tax Deductions (Lower Your Taxable Income)
- 401(k) / Ret Pre-Tax: Elective deferrals into a traditional retirement account.
- Med / Health Ins Pre-Tax: Section 125 medical, dental, and vision insurance premiums.
- HSA / Health Savings: Pre-tax healthcare contributions (exempt from both income tax and FICA).
- FSA / Flex Spending: Healthcare or dependent care flexible spending contributions.
Post-Tax Deductions (Withheld After Taxes)
- Roth 401(k): Retirement contributions made with after-tax dollars.
- Vol Life / Disab: Optional supplemental life or disability coverage.
- Garnishments: Court-ordered child support, alimony, or tax levies.
Why Year-to-Date (YTD) Totals Matter
Every pay stub provides two columns: “Current” (this pay cycle) and “YTD” (Year-to-Date cumulative total since January 1st).
Monitoring your YTD figures allows you to:
- Track 401(k) and HSA Limits: Ensure your total annual contributions do not accidentally exceed the IRS maximum limits ($23,500 for 401k in 2026).
- Watch the Social Security Cap: Know when you approach the $176,100 wage threshold so you can anticipate a 6.2% take-home pay bump.
- Verify W-2 Accuracy: The final pay stub of December should match your IRS Form W-2 in January penny-for-penny.
Sample Texas Paycheck Breakdown ($75k Annual Salary • Bi-Weekly Check)
Here is how a typical bi-weekly pay stub for a $75,000 salaried employee in Austin or Dallas appears:
| Pay Stub Line Item | Current Period Amount | Year-to-Date (After 6 Months • 13 Checks) |
|---|---|---|
| Gross Salary | $2,884.62 | $37,500.00 |
| Federal Income Tax (FIT) | -$296.92 | -$3,860.00 |
| FICA Social Security (6.2%) | -$178.85 | -$2,325.00 |
| FICA Medicare (1.45%) | -$41.83 | -$543.75 |
| Texas State Income Tax | $0.00 | $0.00 |
| Pre-Tax Health Insurance | -$100.00 | -$1,300.00 |
| Pre-Tax 401(k) (5%) | -$144.23 | -$1,875.00 |
| Net Paycheck Deposited | $2,122.79 | $27,596.25 |
Frequently Asked Questions (FAQs)
What is the difference between OASDI and FICA?
FICA is the governing federal law that comprises two separate taxes: OASDI (Social Security at 6.2%) and MED (Medicare at 1.45%). Some payroll stubs group them together as “FICA” (7.65%), while others (like ADP and Gusto) list them as separate line items.
Why is my take-home pay different from my coworker who makes the same salary?
Net take-home pay varies significantly based on individual W-4 elections (marital filing status, dependent credits on Step 3), pre-tax health insurance plan choices, and voluntary retirement savings percentages.
Calculate your Texas take-home pay and audit your pay stub line-by-line.