Payroll Glossary
Paycheck and pay stub terminology.
This glossary defines common payroll terms in plain language so employees and employers can read earnings statements and verify calculations more confidently.
Core earnings terms
Gross pay: earnings before taxes and other deductions. Net pay: the amount remaining after applicable deductions. Regular pay: compensation for regular hours or the base salary amount. Overtime pay: additional compensation calculated under applicable overtime rules.
Pay rate: the stated amount per hour, day, piece or other unit. Salary: compensation expressed as a fixed amount over a period, often annually. Bonus: additional compensation that may be discretionary or nondiscretionary depending on the facts.
Dates and accumulated totals
Pay period: the dates during which wages were earned. Pay date: the date payment is issued. Current: an amount for this pay period. Year to date or YTD: the accumulated eligible amount since the beginning of the applicable year.
Pay frequency: how often payroll is issued, such as weekly, biweekly, semimonthly or monthly. Read our pay-period guide for examples.
Taxes, deductions and benefits
Withholding: an amount retained from pay for taxes or another valid obligation. Deduction: an amount subtracted from gross pay. Pre-tax deduction: an eligible amount deducted before certain taxes are calculated. Post-tax deduction: an amount deducted after applicable taxes.
Taxable wages: the portion of compensation subject to a particular tax. Employer contribution: an amount paid by the employer that is not necessarily deducted from the worker. See deductions explained.
Record and classification terms
Employee: a worker treated as an employee under applicable tests. Independent contractor: a self-employed person whose status depends on the actual working relationship. Wage statement: an itemized record accompanying payment where required. Earnings statement: a broader term for a record summarizing compensation.
Definitions can carry legal consequences. Consult the IRS Employer’s Tax Guide, the Department of Labor and applicable state agencies for official requirements.
Frequently asked questions
What is the difference between a paycheck and pay stub?
A paycheck or deposit transfers wages; a pay stub explains the earnings, deductions and net amount.
What does YTD mean?
Year to date—the accumulated eligible amount since the start of the applicable year.
Are taxable wages the same as gross pay?
Not always. Some compensation or deductions may be treated differently for a particular tax.
Reviewed August 26, 2026. Requirements can change. Confirm current federal, state and local rules. This is general education, not legal, tax, accounting or payroll advice. See our editorial standards.
Turn payroll terms into a readable record.
Use accurate, authorized source information and review every figure.