Paycheck

The payment employees receive for work performed during a pay period, delivered as a physical check or direct deposit.

A paycheck is the payment an employer issues to an employee for work performed during a pay period. While the term originally referred to a physical paper check, most employees today receive pay via direct deposit into a bank account. Accompanying every paycheck is a pay stub — a detailed breakdown of gross earnings, all deductions, and net pay.

Paychecks aren't simply your salary divided by pay periods. Your gross pay is reduced by mandatory deductions (federal income tax, Social Security, Medicare, state and local taxes) and voluntary deductions (401(k) contributions, health insurance premiums, FSA contributions, garnishments). What you actually receive — net pay or take-home pay — is typically 65–80% of gross earnings depending on your tax bracket and elected deductions.

Employers are legally required to pay wages on the agreed schedule. Withholding or delaying paychecks without cause is wage theft in most jurisdictions and subject to penalties. If you believe your paycheck is short or incorrect, you have the right to review your pay records and dispute discrepancies — many states require employers to resolve payroll errors within one or two pay periods.

Pay Period Types

  • Weekly: 52 paychecks/year — common in hourly jobs like retail, food service, and construction.
  • Bi-weekly: 26 paychecks/year — the most common US frequency; two months each year have three paychecks.
  • Semi-monthly: 24 paychecks/year — typically the 1st and 15th; common for salaried office roles.
  • Monthly: 12 paychecks/year — rare in the US, but standard in many other countries.

Reading Your Pay Stub

  • Gross pay: total earned before any deductions — hourly rate × hours, or your salary for the period.
  • Federal/state/local income tax: withheld based on your W-4 elections and tax bracket.
  • FICA: Social Security (6.2%) and Medicare (1.45%) deducted from every paycheck.
  • Pre-tax deductions: 401(k) traditional, health insurance, FSA/HSA — these reduce your taxable gross.
  • Post-tax deductions: Roth 401(k) contributions, wage garnishments, some supplemental benefits.
  • Net pay: what hits your bank account after everything is deducted.
  • YTD totals: cumulative earnings and deductions since January 1 — useful for tax planning mid-year.

Example

An employee with a $78,000 salary receives 26 bi-weekly paychecks of $3,000 gross. After federal tax ($420), state tax ($130), Social Security ($186), Medicare ($44), and a 401(k) contribution ($300), the net deposit is approximately $1,920.