Course Catalog / BMU 020 / Lesson 4 of 5
BMU 020
Lesson 4: Your pay stub, line by line
Quick review
1. How do you round $4.50?
See the answer
Up, to $5.
2. Who checks store prices in your state?
See the answer
The state weights and measures office.
Why this matters
Your pay stub shows what you earned and what was taken out. Mistakes can happen, like missing hours. If you can read your stub, you can catch them.
In this lesson you will find gross pay, deductions, and net pay, and check the math.
Start with what you already do
You already know your take home pay is less than what you earn. The pay stub shows why.
Common belief: If the check is wrong, there is nothing I can do.
What is actually true: You can ask payroll to fix it. The U.S. Department of Labor also takes wage complaints, and they are kept confidential.
In this lesson you will
- Find gross pay, deductions, and net pay on a pay stub
- Check gross pay with hours times rate
- Name who to contact if your pay is wrong
Key words
- gross pay
- All you earned before anything is taken out.
- deduction
- Money taken out of your pay, like taxes.
- net pay
- What you take home after deductions.
The main lines
Consumer.gov says gross pay is what you earn before deductions, and net pay is what you get after them. Deductions can include federal and state taxes, Social Security, Medicare, and things like health insurance.
| Line | This pay period |
|---|---|
| Hours | 30 |
| Rate | $16.00 an hour |
| Gross pay | $480.00 |
| Federal income tax | $22.00 |
| Social Security (6.2 percent) | $29.76 |
| Medicare (1.45 percent) | $6.96 |
| State income tax | $12.00 |
| Total deductions | $70.72 |
| Net pay | $409.28 |
This stub is a made up example. Yours will look different.
Check gross pay
Gross pay is hours times your hourly rate. 30 hours times $16 is $480. Did you work overtime? The Department of Labor says most hourly workers covered by federal law must get extra pay for it. It must be at least 1.5 times their regular rate for hours over 40 in a week.
Check the deductions
The IRS sets Social Security at 6.2 percent and Medicare at 1.45 percent of your pay. On the sample, 480 times 0.062 is $29.76. 480 times 0.0145 is $6.96.
Add all the deductions. Then subtract them from gross pay. That should equal net pay.
If something is wrong
First ask your payroll office or boss, and keep a copy of your stub and your hours. The Department of Labor says federal law requires employers to keep records of hours and pay, but it does not require pay stubs. Some states do. If you need help with unpaid wages, the Wage and Hour Division takes calls at 1 866 487 9243.
Text version of this figure
Check your pay stub. Gross, deductions, net.
- Step 1, Gross pay: Hours times rate.
- Step 2, Deductions: Taxes, Social Security, Medicare, and more.
- Net pay: Gross minus deductions.
- Does it match?: Check hours, rate, and math.
- Ask for a fix: Payroll first, then the Wage and Hour Division.
Source: Consumer.gov; IRS Topic 751; U.S. Department of Labor (Oct 29, 2026).
Worked example: Rae finds missing hours
Rae works 44 hours one week at $15 an hour.
- Regular pay: 40 hours times $15 is $600.
- Overtime rate: $15 times 1.5 is $22.50.
- Overtime pay: 4 hours times $22.50 is $90.
- Her gross pay should be $690. Her stub shows $660. She shows her hours to payroll, and they fix it.
Rae is a made up example.
Practice: Check a pay stub
Use the IRS rates in this lesson: Social Security 6.2 percent and Medicare 1.45 percent. The pay is made up.
- You worked 35 hours at $14 an hour. What is your gross pay?
- What is Social Security on that pay?
- What is Medicare on that pay?
- You worked 45 hours at $12 an hour, with 5 hours of overtime. What is your gross pay?
Check your practice: feedback
- 35 times $14 is $490.
- $490 times 0.062 is $30.38.
- $490 times 0.0145 is about $7.11.
- 40 times $12 is $480. Overtime is 1.5 times $12, which is $18. 5 times $18 is $90. Gross pay is $570.
Common mistakes
- Only looking at net pay. Check gross pay and hours first.
- Not keeping your own record of hours. Write your hours each day.
- Thinking nothing can be done. Ask payroll, then call the Wage and Hour Division.
Try it: Check one pay stub
Pick your scenario:
- I get paper pay stubs
- I see my stubs in an app or website
- I do not get pay stubs
- Find a recent pay stub, or use the sample.
- Write the hours and rate.
- Multiply to check gross pay.
- Add the deductions.
- Subtract to check net pay.
- Black out private numbers before you share it with anyone.
Do it by: this week
Reflect
Which line on your pay stub was new to you?
Check your understanding
1. Pay is $15 an hour for 20 hours. Find the gross pay.
- $300
- $35
- $150
See the answer and feedback
A is correct. Yes. 20 times 15 is 300.
B: That adds, but you need to multiply. Review Check gross pay.
C: That is only 10 hours. Review Check gross pay.
2. What is net pay?
- Pay before anything comes out
- Pay after deductions
- Pay for overtime only
See the answer and feedback
B is correct. Yes. It is what you take home.
A: That is gross pay. Review Key words.
C: Overtime is part of gross pay. Review Key words.
3. Tia earns $500 gross. Social Security is 6.2 percent. How much comes out?
- $62
- $6.20
- $31
See the answer and feedback
C is correct. Yes. 500 times 0.062 is 31.
A: Check the decimal. Review Check the deductions.
B: Check the decimal. Review Check the deductions.
Takeaway: pay stub
- Gross pay is hours times rate
- Overtime is 1.5 times your rate over 40 hours
- Social Security 6.2 percent, Medicare 1.45 percent
- Net pay is gross minus deductions
Recap
- Gross pay is hours times rate.
- Deductions include taxes, Social Security, and Medicare.
- Net pay is gross minus deductions.
- Ask payroll to fix mistakes.
You now have: a checked pay stub.
Next up
Next you will measure and convert for home tasks, then do your capstone. Go to Lesson 5: Measure it, and your capstone.
Sources
- Consumer.gov (FTC): Your Paycheck Explained (current as of Oct 29, 2026)
- IRS Topic no. 751: Social Security and Medicare withholding rates (current as of Oct 29, 2026)
- U.S. Department of Labor, Wage and Hour Division: Questions and Answers About the FLSA (current as of Oct 29, 2026)
- U.S. Department of Labor, Wage and Hour Division: How to File a Complaint (current as of Oct 29, 2026)
