Understanding Paystub Tax Deductions: FIT, FICA & SIT (2026 Guide)
Confused by acronyms on your check stub? Learn how FIT federal withholding, FICA Social Security (6.2%), Medicare (1.45%), state taxes, and pre-tax deductions affect your net pay.
Key Takeaways & Executive Summary
Demystifying Paystub Tax Deductions & Take-Home Pay
Learn the exact mathematical formulas behind FIT, FICA (OASDI & Medicare), SIT, and pre-tax savings. Need to create legitimate check stubs? Generate instant payroll PDFs online.
Is Gross Pay Before or After Taxes? (The Foundation)
A common question among workers is: is gross pay before or after taxes? Gross pay is always BEFORE taxes are deducted. It represents your total agreed compensation before any mandatory government withholdings (FIT, FICA, SIT) or voluntary company benefits are subtracted.
- Gross Pay: Total earnings before any tax withholdings or benefit deductions are subtracted.
- Total Deductions: Sum of all mandatory taxes (FIT, FICA, SIT) and voluntary withholdings (health, 401k).
- Net Take-Home Pay: The actual cash deposited into your bank account (Gross Pay minus Total Deductions).
What is OASDI Tax on My Paycheck? (6.2% Social Security)
If you see OASDI on your paystub, it stands for Old-Age, Survivors, and Disability Insurance. This is the official federal statute name for Social Security tax administered by the Social Security Administration under the Federal Insurance Contributions Act (FICA).
OASDI Tax Rates & Rules (2026):
- Employee Rate: Exactly 6.2% is deducted from your gross taxable wages.
- Employer Match: Your employer pays a matching 6.2% on your behalf (total 12.4%).
- Wage Base Cap: OASDI tax only applies up to the annual statutory wage limit. Once your cumulative yearly earnings exceed the cap, OASDI tax stops being deducted for the remainder of that calendar year.
- Self-Employed 1099 Workers: Independent contractors pay both halves (12.4% OASDI + 2.9% Medicare = 15.3% Self-Employment Tax).
What is FIT on My Paycheck? (Federal Income Tax)
FIT on your check stub stands for Federal Income Tax Withholding. Unlike FICA taxes (which are flat percentages), FIT is progressive and varies based on your tax bracket (10%, 12%, 22%, 24%, 32%, 35%, or 37%).
The exact dollar amount of FIT withheld is determined by:
- Your marital filing status (Single, Married Filing Jointly, Head of Household).
- The dependents and deductions claimed on your IRS Form W-4.
- Your pay frequency (weekly, bi-weekly, semi-monthly, or monthly).
Paystub Tax Deduction Codes Master Table (/EE Acronyms Decoded)
Decode the standard tax abbreviations displayed on W-2 employee paycheck stubs. When payroll software like ADP, Paychex, or Gusto generates check stubs, they frequently use /EE (meaning Employee Paid) and /ER (meaning Employer Paid):
| Paystub Code / Acronym | Full Official Tax Name | Tax Rate / Formula | Who Deducts / Receives |
|---|---|---|---|
| FIT / FITW / FED MWT/EE | Federal Income Tax Withheld | Progressive 10% – 37% | Internal Revenue Service (IRS) |
| OASDI / FED OASDI/EE | Social Security Tax (FICA) | Flat 6.2% (capped) | Social Security Administration |
| MED / FED MED/EE | Medicare Tax (FICA) | Flat 1.45% (+0.9% >$200k) | Centers for Medicare & Medicaid |
| SIT / ST TAX / SWH | State Income Tax Withholding | 0% to 13.3% (State rules) | State Department of Revenue |
| FUTA (Employer-Only) | Federal Unemployment Tax Act | 0.6% effective (Employer pays) | U.S. Dept of Labor / IRS |
| SDI / SUI | State Disability / Unemployment | 0.5% – 1.1% (CA, NY, NJ, RI, HI) | State Employment Security Dept |
| LIT / CITY TAX | Local / Municipal Tax | 1% to 3.876% (e.g. NYC, Philly) | City Revenue Bureau |
Detailed FIT, FICA (OASDI & Medicare), and SIT Breakdown
Let's examine how each mandatory tax category is calculated:
1. Federal Income Tax Withholding (FIT / FITW / FED MWT/EE)
FIT is determined by your annual salary, filing status (Single, Married, Head of Household), and additional income or dependent adjustments claimed on your Form W-4. Pre-tax deductions reduce your FIT taxable wages before tax tables are applied.
2. FICA Taxes (FED OASDI/EE 6.2% + FED MED/EE 1.45%)
Mandatory payroll tax totaling 7.65% for employees. Employers match an equal 7.65% (total 15.3%). Social Security stops being deducted once your cumulative annual earnings reach the wage cap limit.
3. State Income Tax (SIT) & Disability (SDI)
Varies by state residency. 9 states (FL, TX, WA, NV, SD, TN, WY, AK, NH) charge 0% state income tax on earned wages, while states like California, New York, and New Jersey withhold state income tax plus mandatory State Disability Insurance (SDI).
California Labor Code 226: 9 Mandatory Paystub Requirements
Under California Labor Code Section 226, employers are legally required to provide every employee with an accurate, itemized written wage statement (paystub) every pay period. A valid paystub must contain all 9 statutory items:
Spanish Paystub & Payroll Terminology Glossary (Talonario de Pago)
Looking for pay stubs in Spanish (talonario de cheque / recibo de nómina)? Here is an English-to-Spanish translation guide for standard payroll and tax terms:
| English Term | Spanish Term (En Español) | Meaning / Descripción |
|---|---|---|
| Pay Stub / Paycheck | Talonario de cheque / Recibo de nómina | Itemized statement of pay and deductions |
| Gross Pay | Salario bruto / Ingreso bruto | Total earnings before taxes and deductions |
| Net Pay / Take-Home Pay | Salario neto / Pago neto para llevar | Cash deposited into employee bank account |
| Tax Deductions / Withholding | Deducciones de impuestos / Retenciones | FIT, OASDI, and SIT deductions |
| Year to Date (YTD) | Acumulado en el año (YTD) | Cumulative totals since January 1st |
| Pay Period | Período de pago | Date range worked for this paycheck |
Pre-Tax vs Post-Tax Deductions Explained
Pre-Tax Deductions
Subtracted BEFORE income tax is calculated. Examples: Traditional 401(k), Health Insurance Premiums, HSA/FSA contributions. Lowers overall tax bill.
Post-Tax Deductions
Subtracted AFTER taxes are withheld. Examples: Roth 401(k), Union Dues, Charitable Donations, Court Wage Garnishments (Child Support).
Real-World $5,000 Paystub Calculation Example
Sample Bi-Weekly Check Breakdown ($5,000 Gross Salary):
Related Payroll & IRS Tax Guides
YTD Gross & Net Pay Guide →
Learn how mortgage lenders audit YTD income on check stubs.
W-2 Box 12 Codes Decoded →
Complete guide to 401(k) Code D, HSA Code W, and health plans.
W-9 vs W-4 Tax Differences →
Learn why contractors pay self-employment tax without withholding.
Frequently Asked Questions
Statutory References & Legal Citations
This publication is audited against official federal statutes, Treasury regulations, and published IRS bulletins. Verified primary source references are provided below for independent legal and accounting cross-examination.
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