Pay Stub Deduction Codes Explained: Taxes, Benefits and Garnishments
By ePaystubs Editorial Team | Updated June 22, 2026 | Verified against IRS Publication 15-B
Pay stub deduction codes are short labels -- FIT, OASDI, MED, HSA, GARN -- that identify every amount subtracted from your gross pay. Each falls into one of four categories: mandatory taxes, pre-tax voluntary deductions, post-tax voluntary deductions, or court-ordered involuntary deductions. The category determines whether a code lowers your taxable income, whether your employer matches it, and how it appears on your year-end W-2.
Most workers glance at their net pay and move on. But the codes between gross and net tell you exactly where your money goes -- and whether it is being handled correctly. This guide decodes every common code, explains the tax treatment of each, and includes a W-2 reconciliation section for when your stub and your tax form do not match.
- Mandatory taxes
- Pre-tax deductions
- Post-tax deductions
- Garnishments
- Platform labels
- W-2 reconciliation
- State codes
- Fixing errors
The Four Categories of Pay Stub Deductions
Every deduction on a pay stub belongs to one of four categories. Knowing the category immediately tells you the tax treatment -- no further research needed.
| Category | Common Examples | Reduces Income Tax? | Reduces FICA? | Employer Matches? |
|---|---|---|---|---|
| Mandatory taxes | FIT, OASDI, MED, SIT, SDI | N/A | N/A | FICA only |
| Pre-tax voluntary | HSA, FSA, health ins, 401(k) | Yes | Section 125 only | Sometimes |
| Post-tax voluntary | Roth 401(k), LTD, union dues | No | No | Sometimes |
| Involuntary / court-ordered | GARN, CHLD SUP, TAX LEVY | No | No | No |
Category 1 -- Mandatory Tax Codes
These appear on every stub, every pay period, for every W-2 employee. No W-4 election, benefits enrollment, or filing status changes whether they apply -- only the amounts vary.
Federal Tax Codes
| Code(s) | What It Is | 2026 Rate / Limit |
|---|---|---|
| FIT FED FITW FWT | Federal Income Tax withholding. Calculated from your W-4 filing status and IRS Publication 15-T tables. Progressive 10%--37%. | Varies by income and W-4 |
| OASDI SS FICA-SS Fed OASDI/EE SOCSEC | Social Security tax. Funds retirement, disability, and survivor benefits. Stops once your YTD wages hit the wage base. | 6.2% up to $184,500 2026 |
| MED FICA-Med Fed MED/EE HI MEDI | Medicare tax. Funds hospital insurance. No wage cap -- applies to every dollar earned. Additional 0.9% kicks in above $200,000 (single). | 1.45% -- no cap |
FICA is the umbrella law that authorises both the Social Security and Medicare deductions, with rates confirmed each year in IRS Topic 751. For the full mechanics of how FICA is calculated, why your stub shows two lines instead of one, and what happens when Social Security withholding stops mid-year, see what FICA means on a pay stub. For the federal income tax line specifically -- how the W-4 affects the amount and what the label variants mean -- see what FIT or FWT means on a pay stub.
State and Local Tax Codes
| Code(s) | What It Is | Who Sees It |
|---|---|---|
| SIT ST SWT SITW | State Income Tax withholding. Rate and structure varies by state. | 41 states (9 have no income tax) |
| SDI CASDI NJ SDI VSDI | State Disability Insurance. Funds short-term disability and paid family leave in select states. | CA, NJ, NY, RI, HI employees |
| SUI SUTA | State Unemployment Insurance. Employer-paid in most states -- only appears as an employee deduction in three states. | AK, NJ, PA employees only |
| PFL FLI FAMLI PFML PAID LV | Paid Family Leave premium. State-specific program names and codes vary. | CA (inside SDI), NJ, NY, WA, MA, OR, CO, CT, DC |
| LOCAL CITY TAX NYC | Local income tax. Imposed by select cities and counties on top of state and federal taxes. | NYC, Philadelphia, some Ohio and PA cities |
For a complete breakdown of state income tax withholding codes, rates, and how they appear on your stub, see state income tax withholding on a pay stub. For state unemployment codes, see what SUI or SUTA means on a pay stub. State-specific deduction rates for your location are at epaystubs.net/state.
Category 2 -- Pre-Tax Voluntary Deductions
Pre-tax deductions are subtracted from your gross pay before taxes are calculated. This lowers your taxable income and reduces what you owe. The amount of tax reduction depends on whether the deduction qualifies under Section 125 of the tax code.
| Code(s) | What It Covers | Reduces Income Tax? | Reduces FICA? | 2026 Limit |
|---|---|---|---|---|
| 401K 401K-PRE 401(K) EE RET | Traditional 401(k) retirement plan contribution | Yes | No | $24,500 2026 / $32,500 age 50+ / $35,750 age 60--63 |
| HSA HSA EE | Health Savings Account (HDHP enrollment required). Unused funds roll over indefinitely. | Yes | Yes | $4,400 individual / $8,750 family |
| FSA FSA-MED MED FSA | Medical Flexible Spending Account. Use-it-or-lose-it applies (some carryover allowed). | Yes | Yes | $3,400 2026 |
| FSA-DEP DEP CARE | Dependent Care FSA. Covers childcare, preschool, elder care. No carryover. | Yes | Yes | $7,500 per household raised by OBBBA |
| HEALTH MED INS INS | Employer-sponsored health insurance premium (employee share under Section 125) | Yes | Yes | No IRS cap |
| DENTAL DEN | Dental insurance premium (Section 125) | Yes | Yes | No IRS cap |
| VISION VIS | Vision insurance premium (Section 125) | Yes | Yes | No IRS cap |
| TRANSIT COMMUTER PARKING | Qualified commuter benefit for transit passes and workplace parking | Yes | Yes | $340/month each |
| 403B | Retirement plan for non-profit and public school employees. Same tax treatment as 401(k). | Yes | No | Same as 401(k) |
| 457 | Government employee deferred compensation plan | Yes | No | Same as 401(k) |
For a deeper explanation of how the timing of pre-tax versus post-tax deductions affects your taxable wages and your W-2, see pre-tax versus post-tax deductions explained.
Category 3 -- Post-Tax Voluntary Deductions
Post-tax deductions come out after federal and state taxes have already been calculated. They do not reduce your current tax bill. Some provide future tax benefits instead.
| Code(s) | What It Covers | Future Tax Benefit |
|---|---|---|
| ROTH 401K-ROTH ROTH 401K | Roth 401(k) contribution. Taxed now, tax-free in retirement including earnings. | Tax-free withdrawals in retirement |
| LTD LONG TERM DIS | Long-term disability insurance premium. If you pay post-tax, any disability benefits you receive are tax-free. | Tax-free disability benefits |
| STD SHORT TERM DIS | Short-term disability insurance premium. Same post-tax / tax-free benefit logic as LTD. | Tax-free disability benefits |
| UNION UNION DUES | Union membership dues withheld through payroll | Potentially deductible on Schedule A |
| LIFE SUPP LIFE | Supplemental voluntary life insurance premium paid by employee | None on current taxes |
| CHARITY UNITED WAY | Voluntary charitable payroll deduction | Deductible if you itemize |
The taxable value is not the actual premium your employer pays. The IRS sets it using the Uniform Premium Table (Table I) in Publication 15-B, based on your age and the amount of coverage above $50,000. Here is how it works for a 45-year-old with $150,000 in employer-provided coverage:
GTL Imputed Income Example -- Age 45, $150,000 Coverage
That $180 is added to W-2 Boxes 1, 3, and 5 and is subject to Social Security and Medicare tax -- but the employee never sees $180 leave their paycheck. Federal income tax withholding on GTL is optional for the employer, so some workers owe a small amount at filing.
Category 4 -- Involuntary and Court-Ordered Deductions
These deductions are legally mandated. Your employer is required to process them upon receiving a court order or government notice and has no discretion to refuse. All are post-tax, and the amount that can be withheld is capped by the federal Consumer Credit Protection Act, enforced by the Department of Labor Wage and Hour Division.
| Code(s) | What It Is | CCPA Limit |
|---|---|---|
| GARN GARN% CRED GARN | Wage garnishment for a court-ordered creditor judgment | 25% of disposable earnings or amount over 30x federal minimum wage, whichever is less |
| CHLD SUP CS CHSPPRT | Child support withholding order. Most common garnishment type. | Up to 50--65% of disposable earnings depending on circumstances |
| TAX LEVY | IRS or state tax levy for unpaid taxes | IRS Publication 1494 exemption tables apply |
| BANKRPTY | Court-ordered bankruptcy repayment | CCPA standard limits |
| STDNLOAN | Federal student loan default garnishment | 15% of disposable earnings |
If a garnishment line appears on your stub and you were not notified in advance, your employer is legally required to provide you with a copy of the underlying court order. For a full explanation of how garnishment amounts are calculated, what the CCPA limits mean in practice, and how to respond, see what GARN means on a pay stub.
Why the Same Deduction Has Different Labels at Different Employers
Every payroll platform -- ADP, Workday, Paychex, Gusto -- uses its own label conventions for the same underlying deductions. Workers who switch employers frequently assume something is wrong when they see an unfamiliar code. Almost always, the deduction itself has not changed. Only the platform has.
| Deduction | ADP | Workday | Paychex | Gusto |
|---|---|---|---|---|
| Social Security (employee) | Fed OASDI/EE | OASDI | SS | OASDI |
| Medicare (employee) | Fed MED/EE | MEDI | MED | Medicare |
| Federal Income Tax | FWT | FED TAX | FIT | Federal Tax |
| Employer SS match | ERSS | ER SS | ERSS | ER Social Security |
| Employer Medicare match | ERMED | ER MED | ERMED | ER Medicare |
| Traditional 401(k) | 401K | 401K PRE | 401(K) EE | 401k |
| Wage garnishment | GARN | POST TAX GARN | GARN | Garnishment |
If two coworkers at the same company show different codes for the same deduction, the employer likely has different payroll configurations for different departments or transitioned systems mid-year. The underlying tax treatment is identical regardless of the label used.
How Your Deduction Codes Connect to Your W-2
Every January, the most searched payroll question is some version of "why doesn't my W-2 match my pay stub?" The answer is in your deduction codes. Your final stub shows gross wages. Your W-2 shows taxable wages after pre-tax deductions have been applied -- and the amount differs across the three main wage boxes.
| W-2 Box | What It Shows | What Reduces It |
|---|---|---|
| Box 1 | Federal taxable wages (usually the lowest) | 401(k), health, HSA, FSA, dental, vision, commuter |
| Box 3 | Social Security wages (higher than Box 1) | Section 125 only (health, HSA, FSA, dental, vision) -- 401(k) does NOT reduce this box |
| Box 5 | Medicare wages (usually the highest) | Same as Box 3 -- no wage cap, so GTL imputed income can push this even higher |
Here is a worked example using real 2026 numbers:
W-2 Reconciliation Example -- $61,000 Gross Income
The three boxes show three different numbers from the same $61,000 gross income. All three are correct. The differences are your pre-tax deductions doing exactly what they are designed to do. Use your year-to-date totals from your final pay stub of the year to verify each W-2 box before you file.
State Deduction Codes -- What Appears Varies by Location
Federal codes are uniform nationwide. State codes depend entirely on where you work. Two workers with identical salaries at the same company can have completely different state deduction lines based on their work state.
State Disability Insurance (SDI) -- 2026 Rates
| State | Code on Stub | 2026 Rate | Wage Cap |
|---|---|---|---|
| California | CASDI SDI VSDI | 1.3% | No cap removed Jan 2024 |
| New Jersey | NJ SDI TDI | 0.5% | Varies |
| New York | NY SDI NY PFL | 0.432% (PFL) | $411.91/year max |
| Rhode Island | RI TDI | 1.1% | Varies |
| Hawaii | HI TDI | Employer/employee split | Varies |
Paid Family Leave (PFL) Codes by State
| State | Code on Stub | Note |
|---|---|---|
| California | No separate line | PFL funded within the same 1.3% SDI deduction -- no separate PFL line ever appears |
| New Jersey | FLI | Separate Family Leave Insurance line |
| New York | NY PFL PFL | Separate line at 0.432% up to the annual cap |
| Washington | PFML WA PFML | Paid Family and Medical Leave -- separate line |
| Massachusetts | PFML MA PFML | Separate line |
| Oregon | PAID LV OFLA | Separate line |
| Colorado | FAMLI | Family and Medical Leave Insurance -- newer program, often confuses workers seeing it for first time |
For rates, rules, and every deduction line specific to your state, see your state's pay stub guide at epaystubs.net/state.
How to Spot and Fix a Deduction Code Error
Payroll errors in deduction codes are more common than most workers realise. The three most frequent:
Pre/post-tax misclassification. A Roth 401(k) coded as a traditional 401(k) incorrectly reduces your taxable wages. A traditional 401(k) coded as post-tax means you overpay income tax all year. Both create W-2 errors that require correction.
Duplicate deduction. The same code appearing twice in one period -- most common after payroll system migrations or benefit re-enrollments. Easy to spot by comparing current and prior period totals for the same line.
Stale tax tables. Payroll software running outdated withholding tables produces wrong FIT amounts. Particularly common in January when new IRS Publication 15-T tables take effect.
What To Do
Compare the current stub line by line to your previous pay period and identify exactly which code changed. If the discrepancy is real, contact payroll or HR in writing -- email creates a paper trail that a verbal conversation does not. State the specific line, the amount shown, and what you believe the correct figure should be. Request a corrected stub for any affected prior periods.
Frequently Asked Questions About Pay Stub Deduction Codes
Pre-tax deductions come out before taxes are calculated, lowering your taxable income and reducing what you owe. Post-tax deductions come out after taxes have already been withheld and do not reduce your current tax bill, though some provide future benefits. Two workers with identical salaries can have meaningfully different take-home pay based entirely on how their deductions are classified.
Your final stub shows gross wages. Your W-2 Box 1 shows taxable wages after pre-tax deductions have been subtracted. Box 3 (Social Security wages) is higher than Box 1 because 401(k) deferrals do not reduce Social Security wages. Box 5 (Medicare wages) is usually the highest of the three. The differences between the three boxes are expected and correct -- they reflect exactly how each deduction is treated under tax law.
GTL stands for Group Term Life Insurance. If your employer provides life insurance coverage above $50,000, the IRS requires the taxable value of the excess to appear as imputed income under IRC Section 79. GTL raises your taxable wages for FICA purposes and appears in W-2 Box 12 Code C, but no cash leaves your paycheck -- it is a tax reporting entry, not a deduction.
Not necessarily. Many companies use custom or platform-specific codes, and different payroll platforms label the same deductions differently. If a code ends in ER -- like ERMED or ER SS -- it is your employer's contribution shown for transparency and never reduces your pay. If a code is genuinely unfamiliar, check your onboarding documents or ask HR before assuming an error.
In 47 states SUI is entirely employer-paid and never appears on employee stubs. If you work in Alaska, New Jersey, or Pennsylvania you will see a small SUI employee contribution line. In every other state it is your employer's cost alone and is invisible to you on the stub.
Compare the stub to your prior pay period and identify exactly which line changed. Contact payroll in writing with the specific amount, pay date, and what you believe the correct figure should be. Request a corrected stub for affected periods. Under federal FLSA you have two years to file a formal complaint with the Wage and Hour Division if the issue is not resolved -- three years if the error appears intentional.
Only mandatory taxes and court-ordered garnishments can be deducted without your prior consent. All voluntary deductions -- benefits, retirement contributions, insurance -- require your authorisation, typically at enrollment. An unrecognised deduction that is not a tax or garnishment should be questioned with payroll immediately and documented in writing.