Definitive Guide

Deciphering Your Pay Stub

Confused by the alphabet soup on your paycheck? We've compiled the ultimate dictionary of every tax code, deduction abbreviation, and benefit acronym used in 2026.

FICA

Tax

Federal Insurance Contributions Act

A mandatory federal payroll tax deduction that funds Social Security and Medicare programs.


OASDI

Tax

Old-Age, Survivors, and Disability Insurance

The official name for Social Security tax. It is deducted at a rate of 6.2% of your gross earnings up to the taxable maximum.


MED / MCARE

Tax

Medicare Tax

A federal tax used to fund the Medicare health insurance program. It is deducted at a rate of 1.45% of all gross earnings.


FED / FIT

Tax

Federal Income Tax

The tax levied by the IRS on your annual earnings. The amount depends on your W-4 withholdings and filing status.


SIT / SWAF

Tax

State Income Tax

Tax collected by your state government. Rates vary significantly by state, seeking 0% in places like Texas and Florida.


401(k)

Deduction

Retirement Savings Plan

A pre-tax contribution to an employer-sponsored retirement account. This lowers your taxable income for the current year.


YTD

Earning

Year to Date

The total amount of earnings or deductions accumulated from the beginning of the calendar year up to the current pay period.


SDI / CASDI

Tax

State Disability Insurance

A specific tax found in states like California, funding short-term disability benefits for workers.


FLI

Tax

Family Leave Insurance

A deduction (common in NJ and NY) that funds paid family leave programs for employees.


LTD / STD

Benefit

Long/Short Term Disability

Insurance premiums paid (often post-tax) to provide income protection if you are unable to work due to illness or injury.