Work & taxes learning guide
Paycheck & W-2 Explainer
Use this page as a quick map for the terms you are likely to see on a U.S. paycheck and Form W-2, then continue to the full Academy lesson.
On a paycheck
- Gross pay: earnings before payroll deductions.
- Federal income tax withholding: amount withheld toward federal income taxes.
- Social Security and Medicare: payroll-tax lines often shown separately.
- Benefits and retirement deductions: amounts for eligible plans or benefits.
- Net pay: amount remaining after deductions and withholding.
On a W-2
- Box 1: wages, tips, and other compensation reported for federal income tax purposes.
- Box 2: federal income tax withheld.
- Boxes 3–6: Social Security and Medicare wages/taxes.
- Box 12: may contain coded items such as certain retirement-plan contributions or benefits.
- State/local boxes: may appear when applicable.
For current filing rules and box-specific instructions, use official IRS guidance rather than relying on a general explainer.
Educational note: This page is general U.S. financial education, not tax or payroll advice. Employers and tax situations vary.