Pay Stub

What is a pay stub?

A pay stub is a document issued by an employer that breaks down an employee’s gross earnings, deductions from those earnings, and net pay. Pay stubs are created with paychecks, so each employee gets a new pay stub for each pay period.

Pay stubs may be created as a separate part of a paper paycheck, or they may exist in electronic form. Electronic pay stubs are commonly emailed to employees or made available online to confirm direct deposits of their paychecks.

A pay stub can also be called a paycheck stub, salary statement, earnings statement, or pay slip.

What information is on a pay stub?

A pay stub shows the total amounts an employee has earned, amounts deducted from those earnings, and the remaining take-home pay after deductions. Some pay stubs also show the remaining sick leave and vacation leave hours the employee is entitled to during the current year. Separate columns show figures for the current pay period and year-to-date.

Most pay stubs include some of the following details.

Dates and contacts

The top of a pay stub will normally show details of both the employer and the employee, which may include:

• Employer’s name and address
• Employee’s name and address
• The pay period (beginning and end dates)
• Identification number

Gross earnings

A pay stub will detail the total amount (gross wages) earned, which may include:

• Regular wages (salary or hourly earnings)
• Commissions
• Bonuses
• Sick pay
• Holiday pay
• Vacation pay
• Payroll advances

Deductions and contributions

Deductions on a pay stub are the amount of money taken out of an employee’s gross wages, which may include:

• Federal taxes
• State taxes
• Local taxes
• FICA taxes (Social Security)
• Medicare
• Employee insurance premiums
• Retirement or pension plan contributions
• Garnishments
• Loan payments
• Charitable contributions

Pay rates and hours

Workers paid by the hour and salaried non-exempt employees will see more details about their gross wages when applicable, including:

• Hourly rate of pay
• Number of hours worked at a regular pay rate
• Overtime
• Shift differential
• Tips

Net pay

The net pay on a pay stub shows an employee’s take-home pay following deductions and contributions. The net pay may differ from gross pay depending on how much is deducted every pay period.

Do employers have to provide a pay stub?

In the United States, no federal law requires employers to give employees pay stubs, but many states require them as part of the pay transparency laws in place. Details of those requirements vary from state to state, so it’s important to consult with your state labor office, especially if your organization does business in more than one state.

Depending on your state or jurisdiction, there are certain requirements for issuing an electronic or paper pay stub to keep in mind:

• No requirement states: Employers in states with no requirements can decide whether to provide paper or electronic pay stubs without government oversight.
• Access/print states: Employers using electronic pay stubs must ensure employees can easily view and print them.
• Opt-in states: Employees in opt-in states receive printed pay stubs unless they approve an electronic version.
• Opt-out states: Employers can issue an electronic pay stub, but must provide a paper pay statement to employees that request them.