Pay Stub Deduction Codes Explained: Taxes, Benefits and Garnishments
Pay stub deduction codes are abbreviated labels for taxes, benefits, retirement contributions, garnishments and other payroll items. Common examples include FIT, OASDI, MED, 401K, HSA and GARN. Codes are not universal: employers and payroll systems can create custom labels. To interpret one, check who pays it, whether it reduces current net pay, and whether it changes federal income-tax, Social Security or Medicare wages.
There is no universal “complete list” of payroll codes. The same deduction can appear under different abbreviations, and a familiar abbreviation can mean something different in a custom payroll setup. Treat the table below as a translation guide, then confirm the exact label with your employer’s payroll or benefits team.
Start with the Current column, not the year-to-date total. Then look for an employee or employer marker. EE, EMP or Employee usually identifies your share; ER, CO or Company usually identifies an employer-paid amount. These markers are common, not standardized. If you need help locating each section first, see how to read a pay stub and Current versus YTD.
Pay Stub Deduction Code Finder
Search a code or filter the list by purpose. Every row is included in the page’s HTML, so the guide remains readable and crawlable even if filtering is unavailable.
Showing all common codes.
| Code or variant | Common meaning | Usually paid by | Lowers current net pay? | Typical tax or W-2 effect | What to verify |
|---|---|---|---|---|---|
| FIT, FWT, FED | Federal income tax withholding | Employee | Yes | Withholding appears in W-2 Box 2; it does not reduce wage boxes | Form W-4 inputs and taxable wages |
| OASDI, SS, SOC SEC | Employee Social Security tax | Employee | Yes | Withholding appears in W-2 Box 4; Social Security wages appear in Box 3 | 2026 rate and annual wage base |
| MED, MEDI, HI | Employee Medicare tax | Employee | Yes | Withholding appears in W-2 Box 6; Medicare wages appear in Box 5 | Regular versus Additional Medicare tax |
| FICA | Social Security and Medicare payroll taxes, sometimes shown as one heading | Employee and employer | Employee share: yes | Usually reconciles to W-2 Boxes 3–6 | Whether the stub breaks OASDI and Medicare into separate lines |
| SIT, SWT, STATE | State income tax withholding | Employee | Yes | Usually reported in W-2 Boxes 15–17 | Work state, resident state and state withholding form |
| LIT, LOCAL, CITY | Local, city, county or school-district income tax | Employee | Yes | Often reported in W-2 Boxes 18–20 | Local jurisdiction and work location |
| SDI, CASDI, TDI | State disability insurance or temporary disability program | Employee, employer or both | Sometimes | State-specific; may appear in W-2 Box 14 or another state field | State program, rate, wage base and payer |
| SUI, UI, SUTA | State unemployment insurance | Usually employer; employees contribute in some states | Sometimes | State-specific reporting | Whether the line is employee-paid or employer-only |
| 401K, 401K PRE | Traditional 401(k) elective deferral | Employee | Yes | Usually lowers W-2 Box 1, not Boxes 3 or 5; commonly Box 12 Code D | Traditional versus Roth election |
| ROTH 401K, 401K R | Designated Roth 401(k) contribution | Employee | Yes | After-tax; commonly reported in W-2 Box 12 Code AA | That the plan labels Roth separately |
| 403B, TSA | 403(b) retirement-plan contribution | Employee | Yes | Traditional deferrals commonly use Box 12 Code E; Roth 403(b) uses Code BB | Traditional, Roth or another contribution type |
| 457B, DEFERRED COMP | Eligible deferred-compensation plan contribution | Employee and sometimes employer | Employee share: yes | Reporting depends on plan type; governmental 457(b) deferrals commonly use Box 12 Code G | Governmental versus nongovernmental plan and Roth status |
| PENSION, RET | Pension or retirement contribution | Employee, employer or both | Sometimes | Tax treatment depends on the plan and whether the employee contribution is pre-tax | Plan document and employee/employer-paid marker |
| 401K ER, MATCH | Employer retirement match or contribution | Employer | No | Generally does not reduce the employee’s current net pay | Vesting rules and whether it is informational |
| HSA, HSA EE | Employee health savings account contribution through payroll | Employee | Yes | Cafeteria-plan contributions are generally pre-tax; salary-reduction amounts are included with employer HSA contributions in W-2 Box 12 Code W | HSA eligibility, contribution method and annual limit |
| HSA ER | Employer HSA contribution | Employer | No | Generally shown in W-2 Box 12 Code W together with qualifying payroll HSA amounts | Year-to-date total and eligibility |
| FSA MED, MED FSA | Health flexible spending arrangement contribution | Employee | Yes | Generally pre-tax under a qualifying cafeteria plan | Plan-year election, eligible expenses and carryover rules |
| DCFSA, DEP FSA, DCAP | Dependent care flexible spending or assistance contribution | Employee | Yes | Generally pre-tax up to the applicable exclusion; W-2 Box 10 may report dependent-care benefits | Eligibility, annual election and qualifying expenses |
| MED INS, HEALTH, S125 | Medical insurance premium, often through a Section 125 cafeteria plan | Employee | Yes | Often reduces federal income-tax and FICA wages when the benefit qualifies | Whether the premium is pre-tax or after-tax |
| DEN, DENTAL | Dental insurance premium | Employee, employer or both | Employee share: yes | May be pre-tax under the employer’s cafeteria plan | EE/ER share and plan tax treatment |
| VIS, VISION | Vision insurance premium | Employee, employer or both | Employee share: yes | May be pre-tax under the employer’s cafeteria plan | EE/ER share and plan tax treatment |
| LIFE, SUPP LIFE | Employee-paid life insurance premium | Employee | Yes | Often after-tax; plan treatment varies | Coverage amount, beneficiary and tax basis |
| STD | Short-term disability insurance premium | Employee, employer or both | Employee share: yes | Pre-tax versus after-tax premiums can affect taxation of future benefits | Who pays and the plan’s tax treatment |
| LTD | Long-term disability insurance premium | Employee, employer or both | Employee share: yes | Pre-tax versus after-tax premiums can affect taxation of future benefits | Who pays and the plan’s tax treatment |
| SUPP INS, AFLAC | Supplemental insurance premium | Employee | Yes | May be pre-tax or after-tax depending on product and plan setup | Specific policy and tax election |
| ER MED, ER HEALTH | Employer-paid medical coverage or contribution | Employer | No | Usually informational and does not reduce employee net pay | Whether any employee share is listed elsewhere |
| GTL, GTL IMP, IMPT INC | Taxable value of qualifying group-term life coverage over the excludable amount | Employer benefit; tax is borne through payroll | Not a cash deduction itself, but it can increase taxes | Taxable cost may enter W-2 Boxes 1, 3 and 5 and Box 12 Code C | Coverage, age-based cost and employee after-tax payment |
| GARN, GARNISH | Wage garnishment for a debt or legal order | Employee wages | Yes | Generally does not reduce taxable wages | Order type, case or agency, disposable earnings and applicable limits |
| CS, CHSUP, SUPPORT | Child or spousal support withholding | Employee wages | Yes | Generally does not reduce taxable wages | Issuing agency, arrears and priority rules |
| TAX LEVY, IRS LEVY | Federal, state or local tax levy | Employee wages | Yes | Generally does not reduce taxable wages; special levy rules apply | Agency notice, exempt amount and release status |
| SL GARN, STUDENT LN | Student-loan administrative wage garnishment | Employee wages | Yes | Generally does not reduce taxable wages | Debt holder, notice and applicable federal or state rule |
| BANKRUPTCY | Payment required by a bankruptcy order or plan | Employee wages | Yes | Taxable-wage treatment generally does not change | Trustee instructions and controlling court order |
| UNION, DUES | Union dues or assessments | Employee | Yes | Usually after-tax for payroll purposes; individual deductibility is limited and fact-specific | Authorization, amount and union agreement |
| TRANSIT, PARK, COMM | Qualified transit pass, commuter-vehicle or parking benefit | Employee, employer or both | Employee share: yes | Can receive favorable treatment under Internal Revenue Code Section 132 up to applicable limits | Benefit type, monthly election and limit |
| CHARITY, UW | Payroll charitable contribution | Employee | Yes | Usually after-tax; tax-return treatment depends on current deduction rules and records | Authorization, recipient and receipt |
| 401K LOAN, LOAN REPAY | Retirement-plan loan repayment | Employee | Yes | Repayment is not the same as a new pre-tax contribution | Loan balance, interest and repayment schedule |
| ADVANCE, PAY ADV | Repayment of a wage or payroll advance | Employee | Yes | Usually does not reduce current taxable wages because the advance was handled earlier | Original advance and repayment agreement |
| MEALS, CAF | Employee meal or cafeteria charge | Employee | Yes | Often after-tax; employer-provided meals can follow different rules | Dates, subsidy and authorization |
| UNIFORM, EQUIP | Uniform, equipment or tool charge | Employee | Yes | Usually after-tax; legality depends on federal and state wage rules | Authorization, state law and minimum-wage impact |
| MISC, OTHER | Custom payroll deduction | Varies | Varies | Cannot be determined from the abbreviation alone | Payroll code description, authorization and source document |
Do not assume every line is money taken from you. Employer-paid amounts, taxable fringe benefits and memo items may appear in the deduction area without subtracting the displayed amount from current net pay. Compare gross pay, employee deductions and net pay to confirm the arithmetic.
Classify a Deduction on Two Separate Axes
“Mandatory versus voluntary” and “pre-tax versus post-tax” answer different questions. A reliable interpretation uses both axes.
Axis 1: Why is the amount there?
- Statutory tax: federal, state, local, Social Security or Medicare withholding.
- Voluntary benefit: health coverage, retirement, HSA, FSA or supplemental insurance.
- Employer contribution: a company-paid benefit or match, often informational.
- Order or levy: garnishment, support, tax levy or bankruptcy payment.
- Other payroll item: dues, loan repayment, meals, equipment or a custom code.
Axis 2: How is it taxed?
- Pre-tax for federal income tax: may reduce W-2 Box 1 wages.
- Pre-tax for FICA too: may reduce Social Security and Medicare wages when the plan qualifies.
- After-tax: reduces net pay but not taxable wages.
- Imputed or taxable benefit: can increase taxable wages without giving the employee extra cash.
- Employer-only or memo item: normally has no direct effect on current net pay.
A deduction labeled “pre-tax” is not necessarily exempt from every payroll tax. For example, a traditional 401(k) deferral generally reduces federal income-tax wages but remains included in Social Security and Medicare wages. By contrast, many qualified Section 125 health benefits are generally excluded from federal income-tax withholding and FICA wages. See the deeper guide to pre-tax versus post-tax deductions.
How common deductions affect net pay and the W-2
| Item | Current net pay | Federal taxable wages | Social Security and Medicare wages | Typical W-2 clue |
|---|---|---|---|---|
| FIT / FWT | Reduces | No reduction | No reduction | Box 2 withholding |
| OASDI | Reduces | No reduction | No reduction to wage base | Boxes 3 and 4 |
| MED | Reduces | No reduction | No reduction | Boxes 5 and 6 |
| Traditional 401(k) | Reduces | Usually reduces | Usually does not reduce | Box 12 Code D |
| Roth 401(k) | Reduces | Does not reduce | Does not reduce | Box 12 Code AA |
| Qualified Section 125 health premium | Reduces | Generally reduces | Generally reduces | Plan-specific; may appear in Box 14 |
| HSA through a cafeteria plan | Reduces employee share | Generally reduces | Generally reduces | Box 12 Code W includes qualifying salary-reduction and employer amounts |
| Garnishment | Reduces | No reduction | No reduction | Usually no separate federal W-2 code |
| Employer contribution | Usually no effect | Depends on benefit | Depends on benefit | May be informational or separately reported |
| GTL imputed income | Can increase taxes | Can increase | Can increase | Box 12 Code C |
Worked Example: From Gross Pay to Net Pay
This fictional pay period shows why one “pre-tax” deduction can reduce different wage bases than another. Federal and state income-tax withholding amounts are illustrative only; actual withholding depends on payroll frequency, Form W-4 information, state rules and the employer’s payroll calculation.
Federal taxable wages: $3,000 − $150 Section 125 health − $180 traditional 401(k) = $2,670.
Social Security and Medicare wages: $3,000 − $150 qualifying Section 125 health = $2,850. The traditional 401(k) does not reduce these wages.
To check a real stub, calculate gross pay minus every employee-paid deduction that affects the current period. Employer-paid lines and YTD-only figures should not be subtracted again. If the result does not equal net pay, look for an imputed-income line, a direct-deposit split, a correction or a hidden detail page.
Use labeled earnings, taxes and deductions so every current and year-to-date amount is easier to verify.
Create a Pay StubFederal Tax Codes: FIT, OASDI, MED and FICA
FIT, FWT or FED
These labels commonly mean federal income tax withholding. The amount is based on taxable wages, payroll frequency, Form W-4 information and payroll tables. It reduces net pay but does not reduce wages; it is a payment toward the employee’s federal income-tax liability. On Form W-2, federal withholding is reported in Box 2. See FIT and FWT explained.
OASDI, Social Security or SS
OASDI is the Social Security portion of FICA. In 2026, the employee and employer rates are each 6.2%, and the Social Security wage base is $184,500. Once an employee’s covered wages with one employer reach the annual wage base, that employer stops withholding the employee Social Security tax for the rest of the year. Medicare withholding continues because Medicare has no wage cap. See OASDI rates and wage-limit examples.
MED or Medicare
The regular Medicare tax rate is 1.45% for the employee and 1.45% for the employer. An employer must begin withholding the additional 0.9% Medicare tax after it pays one employee more than $200,000 in Medicare wages during the calendar year, without regard to filing status. The employee’s final Additional Medicare Tax liability can use a different threshold based on filing status. See Medicare tax on a pay stub.
FICA
FICA is the federal law covering Social Security and Medicare payroll taxes. Some pay stubs use FICA as a heading and show OASDI and Medicare separately; others use a combined or custom label. Verify both components before deciding that tax was withheld twice. The full calculation is explained in the 2026 FICA guide.
Benefit and Retirement Deduction Codes
Benefits can be employee-paid, employer-paid or shared. They can also be pre-tax for one tax and after-tax for another. The plan document, benefit election and payroll setup control the result—not the abbreviation alone.
| 2026 item | Federal limit | Important qualification |
|---|---|---|
| 401(k), 403(b) and most governmental 457 elective deferrals | $24,500 | General age-50-or-older catch-up is $8,000; the higher catch-up for ages 60–63 is $11,250, subject to plan and eligibility rules |
| HSA contribution limit | $4,400 self-only $8,750 family | Eligibility and coverage rules apply; employer and employee contributions share the applicable limit |
| Health FSA salary reduction | $3,400 | The employer’s cafeteria plan controls eligibility and whether a permitted carryover is offered |
| Dependent care assistance exclusion | $7,500 $3,750 married filing separately | Eligibility, earned-income and qualifying-expense rules still apply |
| Qualified transit/commuter-vehicle benefit | $340 per month | Provided under Internal Revenue Code Section 132, not Section 125 |
| Qualified parking benefit | $340 per month | Separate monthly exclusion from transit/commuter-vehicle transportation |
Traditional and Roth are not interchangeable. A traditional 401(k) deferral generally lowers current federal income-tax wages, while a designated Roth 401(k) contribution is made after tax. Both normally reduce take-home pay, and both are generally included in Social Security and Medicare wages.
Section 125 is a plan framework, not one benefit. A code such as S125 may identify eligible health premiums, an FSA or another cafeteria-plan benefit. Qualified benefits are generally excluded from income-tax withholding and FICA, but exceptions exist. Read the Section 125 guide and confirm the specific election.
GTL or imputed income may move in the opposite direction from a deduction. Under the general rule, the taxable cost of employer-provided group-term life insurance above $50,000 of coverage is included in wages after subtracting qualifying employee after-tax payments. The amount can increase Social Security and Medicare withholding even though the employee did not receive that value in cash. See GTL and imputed income explained.
GARN, Support, Levies and Other Ordered Withholding
A garnishment or levy usually reduces disposable or take-home pay without reducing federal taxable wages. The controlling rule depends on the debt type. For ordinary consumer debts, federal Consumer Credit Protection Act limits generally cap garnishment at the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable week. Different limits and procedures can apply to child support, student loans, bankruptcy orders and federal or state tax debts.
“Disposable earnings” for federal garnishment limits is not the same as net pay. It generally means earnings left after deductions required by law. Voluntary items such as health insurance and union dues are generally not subtracted when calculating disposable earnings under the federal rule.
Check the code, case or agency reference, current amount and remaining balance if shown. Then compare it with the notice or order that controls the withholding. Do not assume the ordinary 25% consumer-debt cap applies to every order. For more detail, read what GARN means on a pay stub.
State and Local Deduction Codes
State and local payroll codes are especially difficult to decode from the abbreviation alone. A line can reflect income-tax withholding, disability insurance, paid-leave insurance, unemployment insurance, local tax or a state-specific program. Common patterns include:
- SIT, SWT or STATE: state income tax withholding.
- LIT, CITY, LOCAL or a locality name: city, county, school-district or other local income tax.
- SDI, CASDI or TDI: disability or temporary disability programs whose payer, rate and wage base vary by state.
- SUI, UI or SUTA: state unemployment insurance, which is employer-paid in most states but can include an employee contribution in some jurisdictions.
- PFL, FLI or PFML: paid family or medical leave programs, where applicable.
Do not use another state’s rate to audit your deduction. Verify the work state, resident state, locality, pay date and current state-agency guidance. The related ePaystubs guides explain state income-tax withholding, SUI and SUTA, and SDI and CASDI.
How Pay Stub Deductions Connect to Form W-2
A W-2 is an annual tax record, not a copy of every deduction line. Many after-tax deductions—such as garnishments, loan repayments and some insurance premiums—do not receive a separate federal W-2 box. Reconcile wage bases and withholding totals instead of expecting every pay-stub label to reappear.
| Pay-stub item | W-2 destination or effect | Year-end check |
|---|---|---|
| Federal taxable wages | Box 1 | Annual gross wages adjusted for qualifying exclusions and additions; it may not equal gross pay |
| FIT / FWT | Box 2 | Sum of federal income tax withheld, subject to payroll corrections |
| OASDI wages and tax | Boxes 3 and 4 | Social Security wages and employee tax, subject to the annual wage base |
| Medicare wages and tax | Boxes 5 and 6 | Medicare wages and tax, including Additional Medicare withholding where applicable |
| Dependent care benefits | Box 10 | Employer-provided dependent care benefits, including qualifying salary-reduction amounts |
| Traditional 401(k) | Box 12 Code D | Elective deferrals under a Section 401(k) arrangement |
| Roth 401(k) | Box 12 Code AA | Designated Roth contributions under a 401(k) |
| HSA | Box 12 Code W | Employer contributions plus employee HSA contributions made through a Section 125 cafeteria plan |
| GTL taxable cost | Box 12 Code C and applicable wage boxes | Taxable cost of group-term life insurance over $50,000 of coverage |
| State and local tax | Boxes 15–20 | State and locality identifiers, wages and withholding where applicable |
| Employer health-coverage cost | Box 12 Code DD when reporting applies | Informational cost; it is not the same as taxable wages |
If Box 1 is lower than annual gross pay, qualifying pre-tax health benefits and traditional retirement deferrals are common reasons. If Boxes 3 and 5 are higher than Box 1, a traditional 401(k) deferral is one possible explanation because it generally reduces Box 1 but not Social Security or Medicare wages. See the full guide to taxable wages and W-2 box differences.
What to Do About an Unexpected Deduction
- Confirm the column. Make sure the amount is under Current rather than YTD, balance or employer contribution.
- Identify the payer. Look for EE/employee versus ER/company markers and recompute gross minus employee deductions.
- Check your records. Review benefit elections, retirement changes, payroll authorizations, court or agency notices and any advance or loan agreement.
- Compare prior stubs. Note when the code first appeared, whether the amount changed and whether a correction or retroactive deduction is present.
- Ask payroll for the code definition and calculation. Include the pay date, exact label, current amount and YTD amount. Avoid sending a full Social Security number by unsecured email.
- Escalate with the right evidence. If the response does not resolve the issue, follow the employer’s payroll/HR process. For a potential unlawful wage deduction, consult the relevant state labor agency or qualified adviser because authorization and deduction rules vary by state.
“Please explain the deduction code [CODE] on my pay stub dated [DATE]. The current amount is [$] and the YTD amount is [$]. Please confirm what the code means, whether it is employee- or employer-paid, the authorization or order supporting it, and whether it changes federal income-tax, Social Security or Medicare wages.”
If the line may be a general earnings or payroll abbreviation rather than a deduction, use the separate pay stub abbreviations guide.
Frequently Asked Questions
Are pay stub deduction codes standardized?
No. FIT, OASDI, MED and 401K are widely recognized, but employers and payroll systems can use custom labels. Confirm an unfamiliar code with the employer rather than relying only on a list.
Which pay stub deductions are tax-exempt?
Tax treatment depends on the benefit and plan. A traditional 401(k) generally reduces federal income-tax wages but not Social Security or Medicare wages. Many qualified Section 125 benefits generally reduce all three. “Pre-tax” does not automatically mean exempt from every tax.
Why is an employer contribution shown in the deduction section?
Some payroll templates group employee deductions, employer contributions and memo items in one area. An ER or company-paid amount usually does not reduce net pay. Verify by recomputing gross pay minus employee deductions.
Why is W-2 Box 1 lower than the gross pay on my final stub?
Qualifying pre-tax health benefits, traditional retirement deferrals and other permitted exclusions can make Box 1 lower than total gross pay. Taxable fringe benefits or payroll adjustments can move it in the other direction. Reconcile annual taxable-wage totals, not only gross earnings.
Does a garnishment reduce taxable income?
Generally, no. A garnishment is usually withheld after payroll determines taxable wages and required taxes. It reduces take-home pay, while the wages used for federal income tax, Social Security and Medicare generally remain unchanged.
What does GTL mean if no cash was taken from my pay?
GTL commonly refers to group-term life insurance. The taxable cost of qualifying employer-provided coverage over $50,000 can be added to wages as imputed income. The GTL amount itself may not be a cash deduction, but it can increase Social Security and Medicare taxes.
Can an employer deduct money without permission?
Some deductions are required by tax law or a valid order; others may require written authorization or must satisfy state wage rules. The answer depends on the deduction and jurisdiction. Ask for the supporting authorization or order, then consult the appropriate state labor agency or qualified adviser if the issue remains unresolved.
Official Sources
- IRS Topic 751: Social Security and Medicare withholding rates
- Social Security Administration: 2026 contribution and benefit base
- IRS: 2026 401(k) and retirement contribution limits
- IRS Publication 15-B (2026): Employer’s Tax Guide to Fringe Benefits
- IRS Notice 2026-5: 2026 HSA limits and eligibility guidance
- IRS General Instructions for Forms W-2 and W-3 (2026)
- IRS FAQs regarding Section 125 cafeteria plans
- U.S. Department of Labor Fact Sheet 30: Federal wage garnishment protections
Editorial note: This guide explains common U.S. payroll terminology for educational purposes. Payroll codes, plan documents, tax treatment and wage-deduction rules vary by employer and jurisdiction. It is not legal, tax or financial advice. Confirm an actual deduction with the employer, plan administrator, issuing agency or qualified professional.