Your first check will be smaller than the hourly rate multiplied by the hours, and that is normal rather than a mistake. Federal income tax comes out based on the W-4 you filled in, FICA takes 7.65 percent of gross whatever you earn, and your state may take more. There is no system here that quietly settles your tax bill for you, which is why the W-4 you completed on day one matters and why you file a return at the end of the year. Here is every line, and the three things to actually check.
Gross is not what you take home
Gross pay is hours multiplied by rate, plus overtime and anything else earned. That is the number you were quoted.
Deductions come off it, and they fall into three groups: taxes you must pay, benefits you chose, and anything else agreed.
Net pay is what lands. Expect it to be noticeably less than gross, and expect the gap to be bigger than you guessed.
The tax lines, one at a time
Federal income tax withholding. This is an estimate, not a final bill. How much comes out is driven by the W-4 you completed when you started, and the US taxes income in graduated slices with a standard deduction shielding the first chunk. That is why your marginal rate, the rate on your last dollar, is always higher than your effective rate, the blended rate you actually pay.
FICA, which is Social Security and Medicare. This comes out from your first dollar with no threshold: 6.2 percent for Social Security and 1.45 percent for Medicare, so 7.65 percent of gross wages. Your employer pays a matching share out of its own pocket, which is part of why an employee costs a business considerably more than the wage.
State income tax, in most states. Nine states have no state income tax on earned income as of 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Some cities and counties levy their own on top.
Other state deductions in some states, such as state disability or paid family leave programs.
Put together: in a state with no income tax, expect to lose roughly 22 to 26 percent of gross to federal income tax plus FICA. In a high-tax state, add roughly another 6 to 9 percent, bringing total deductions to around 28 to 35 percent. How much will I actually take home after US taxes? is the full arithmetic.
There is no PAYE here, and that catches people out
If you have worked in a country with a system that settles your tax automatically, this is the difference that matters. The US withholds tax from your paycheck but has no system that automatically squares up your whole liability. You file an annual return to reconcile it.
The practical consequence is that your W-4 is doing real work. Set it wrong in one direction and you owe money at tax time; set it wrong in the other and you have lent the government money interest-free all year. If your situation changes, a second job, a marriage, a child, you update the W-4 rather than waiting for something to correct itself.
The other deductions
- Health insurance. Often a significant line, and in the US it usually comes out of your pay rather than being provided by the state. Budget for it as part of the job rather than as an extra.
- Retirement contributions, if you are enrolled in a plan.
- Union dues and any benefit fund contributions, where applicable.
- Anything you agreed to, such as a tool purchase plan. If you see a deduction you did not agree to, ask, and ask in writing.
The lines to actually check on your first stub
Most stubs are correct. The mistakes that do happen are consistent, and all three are easy to check.
1. Hours. Compare the hours on the stub to the hours you actually worked, including any time before or after your shift that you were required to be there. This is the single most common error.
2. Overtime. If you worked more than 40 hours in the workweek and you are a non-exempt employee, overtime is generally due at one and a half times your regular rate. Check it was paid and check the rate it was calculated on. The employer-side version of the rule, which is the same rule, is in Do I have to pay my crew overtime?.
3. Your pay rate, and whether you are on a W-2 at all. If there is no tax withheld and no FICA line, you are being treated as a 1099 subcontractor rather than an employee. That is a materially different arrangement: you pay both halves of FICA at 15.3 percent instead of 7.65, nothing is withheld for you, and you get no overtime protection and no unemployment cover. It is very common in construction and often incorrect, because the test is how the relationship actually works, not what the paperwork says. 1099 vs W-2: which are you really? and 1099 or W-2? Worker Status Checker.
Also worth a look: that your pay rate is what you agreed, and if you are on a public job, that the prevailing wage and fringe rate for your classification are being paid. Those jobs come with certified payroll records. What is prevailing wage, and does it apply to my job? and Certified payroll: filling in the WH-347.
If your rate looks wrong against the legal minimum in your state, Is My Pay Legal? Minimum Wage Checker will tell you which minimum applies, since the federal and state figures differ and the higher one governs.
If you are being paid as a 1099, three things change immediately
This is worth its own section because a new starter handed a 1099 often does not realize what has just moved onto them.
You pay both halves of FICA, 15.3 percent, because you are treated as both the worker and the employer.
Nothing is withheld, so nobody is setting money aside for you. You have to do it, and you generally pay quarterly rather than annually. Setting aside roughly 25 to 30 percent of what you take in is the working rule this site publishes. How much should I set aside for taxes when I'm self-employed?, When do I pay my taxes if I'm self-employed? and the Tax Set-Aside Calculator.
You have no overtime protection and no unemployment cover, and no workers' comp behind you unless you arranged it.
If the arrangement is genuine, that is a business you are running and the second half of this section is about it. If it is not genuine, it is misclassification, and it is worth knowing which one you are in.
Keep your stubs
Keep every one, and the W-2 that arrives after the year end. They are the record of what you were paid, they are what a mortgage lender or a landlord asks for, and they are what settles a dispute about hours or rate. Digital copies are fine as long as they exist somewhere other than an app your employer controls.
Where to go next in this section
- Your rights in the first months on the job, including the pay rules behind this stub.
- What nobody tells you before you start in construction, for the first-year money reality.
- Construction jargon explained: site terms in plain English, for W-2, 1099, per diem and prevailing wage in context.
- How much will I actually take home after US taxes?, the deeper arithmetic.
- 1099 vs W-2: which are you really?, if there was no tax withheld.
- When do I owe quarterly taxes, file 1099s, and buy equipment to cut my tax bill?, if you are on a 1099.
Common questions
Why is my first paycheck so much smaller than I expected?
Because gross pay and take-home are two different numbers, and the gap is bigger than most people guess. Federal income tax is withheld based on the W-4 you completed on your first day, FICA takes 7.65 percent of gross from your very first dollar with no threshold, and most states take income tax on top. Health insurance often comes out of your pay as well. In a state with no income tax expect to lose roughly 22 to 26 percent of gross to federal tax plus FICA, and in a high-tax state roughly 28 to 35 percent once state tax is added.
What is FICA on my pay stub?
FICA is Social Security and Medicare tax, and it is 7.65 percent of your gross wages as an employee: 6.2 percent for Social Security plus 1.45 percent for Medicare. It comes out from your first dollar with no threshold or allowance, which is different from income tax. Your employer pays a matching 7.65 percent out of its own pocket, which is part of why an employee costs a business considerably more than the wage they are quoted. If you are self-employed you pay both halves yourself, 15.3 percent, because you are treated as both the worker and the employer.
There is no tax withheld from my pay. Is that normal?
It means you are being treated as a 1099 independent contractor rather than a W-2 employee, and it changes three things immediately. You pay both halves of FICA at 15.3 percent instead of 7.65, nobody is setting tax aside for you so you have to do it yourself and generally pay quarterly, and you have no overtime protection and no unemployment cover. It is common in construction and it is often incorrect, because the test is how the working relationship actually operates rather than what the paperwork calls it. Check which one you really are before the tax year ends.
How do I check my overtime was paid correctly?
Compare the hours on the stub with the hours you actually worked, including any time you were required to be there before or after your shift, since miscounted hours are the most common payroll error. Then check that hours over 40 in the workweek were paid at one and a half times your regular rate, and check what rate the overtime was calculated on rather than only that a premium appeared. Overtime is owed to non-exempt employees, and being paid on a 1099 removes that protection entirely, which is one of the reasons worker classification matters so much in this trade.
What is a W-4 and why does it matter?
The W-4 is the form you complete when you start a job, and it tells your employer how much federal income tax to withhold from each paycheck. It matters because the US has no system that automatically settles your whole tax bill: withholding is an estimate and you file an annual return to reconcile it. Set the W-4 wrong in one direction and you owe money at tax time; set it wrong in the other and you have lent the government money interest-free all year. Update it when your circumstances change, such as a second job, a marriage or a child.
The honest bit
- The FICA rates, the list of nine no-income-tax states and the take-home bands are 2026 US figures from this site's own tax guides. Federal brackets, the standard deduction and thresholds change every year, so verify at irs.gov.
- The bands of roughly 22 to 26 percent and 28 to 35 percent are illustrative ranges, not a calculation for your situation. Your own number depends on your income, your filing status, your state and your deductions.
- Overtime rules have exemptions, and whether you are non-exempt depends on your role and how you are paid. The general position for construction workers is that overtime is owed, but check rather than assume.
- State and local income taxes, disability and paid leave deductions vary a great deal. Your state is the authority.
- This is general guidance, not tax or legal advice.
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Need help pricing your work? Read Section 14: Pricing Your Work - day rates, job prices and how to stop underselling yourself.
Finished your apprenticeship? Read our guide: After Your Apprenticeship - the stuff nobody teaches you in college.
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