Pay Stub (Paycheck Stub)

A pay stub is the detailed breakdown that accompanies every paycheck. Whether delivered as a physical document attached to a paper check or accessed electronically through an employer's payroll portal, the pay stub provides a line-by-line accounting of what an employee earned, what was withheld, and what they received.

Pay stubs are important for several reasons beyond simple transparency. Employees use pay stubs to verify their wages are correct, understand their tax withholdings, confirm benefits deductions match their elections, and track their earnings over time. Pay stubs also serve as proof of income for apartment applications, mortgage approvals, car loans, and government assistance programs.

For employers, issuing accurate pay stubs reduces payroll disputes, demonstrates compliance with wage transparency laws, and creates documentation that protects against wage-and-hour claims. When an employee questions their pay, the pay stub provides the definitive reference point for resolving the issue.

A standard pay stub contains several sections. Understanding each one helps employees verify accuracy and identify potential errors:

Employee Information:

Earnings:

Tax Withholdings:

Benefit Deductions:

Other Deductions:

Net Pay:

There is no federal law requiring employers to provide pay stubs. However, the Fair Labor Standards Act (FLSA) requires employers to keep accurate payroll records. Most states have enacted their own pay stub requirements:

States requiring written or printed pay stubs: California, Connecticut, Colorado, Iowa, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Carolina, Oregon, Texas, Vermont, Virginia, Washington, and others mandate that employers provide a written (paper) earnings statement with each paycheck. In these states, electronic-only delivery may not be sufficient without employee consent.

States allowing electronic-only pay stubs: Many states permit employers to deliver pay stubs electronically (via portal, email, or app) without requiring a paper option. However, the employee must have reasonable access to view and print the statement.

States with no pay stub requirement: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, and Tennessee do not require employers to provide pay stubs. However, providing them is still considered best practice.

California's strict requirements (Labor Code Section 226): California mandates that pay stubs include nine specific items: gross wages, total hours worked, piece rate (if applicable), all deductions, net wages, dates of the pay period, employee name and last four SSN digits, employer name and address, and all applicable hourly rates with corresponding hours. Violations carry penalties of $50 per employee for the first violation and $100 per employee for subsequent violations, plus attorney's fees in private lawsuits.

Employers operating in multiple states should default to the most restrictive requirements to maintain a consistent, compliant pay stub format across all locations.

The shift from paper to digital pay stubs has accelerated significantly, with over 80% of US employers now offering electronic access. Each format has advantages:

Digital pay stubs (electronic):

Paper pay stubs:

Best practice: Offer digital pay stubs as the default with an option for paper delivery. This satisfies the strictest state requirements while reducing printing costs. Ensure your employee self-service portal allows employees to view current and historical pay stubs (most employers retain 3-7 years of history online) and download them as PDFs.

Security considerations: Digital pay stubs contain sensitive personal information (SSN, salary, address). Ensure your payroll portal uses HTTPS encryption, requires multi-factor authentication, masks full Social Security numbers, and logs access for audit purposes.

Employees often have questions about the various deductions on their pay stubs. Here's what the most common ones mean:

FICA (Federal Insurance Contributions Act): This is the combined Social Security and Medicare tax. Employees pay 7.65% of gross wages (6.2% Social Security + 1.45% Medicare), and employers pay a matching 7.65%. Self-employed individuals pay both halves (15.3%). The Social Security portion stops once the employee reaches the annual wage base ($168,600 in 2025).

Federal withholding (FIT or FWT): Income tax withheld based on the employee's W-4 form. The amount depends on filing status, number of dependents, and any additional withholding the employee elected. Employees who consistently receive large tax refunds may want to update their W-4 to reduce withholding and increase take-home pay.

Pre-tax vs. post-tax deductions: Pre-tax deductions (traditional 401(k), health insurance premiums, HSA contributions, transit benefits) reduce taxable income — meaning you pay less in taxes. Post-tax deductions (Roth 401(k), supplemental life insurance, wage garnishments) do not reduce taxable income.

Imputed income: Some employer-provided benefits — such as group-term life insurance over $50,000, personal use of a company vehicle, or domestic partner health coverage — are considered taxable income by the IRS even though the employee doesn't receive cash. This "phantom income" appears on the pay stub as imputed income and increases the tax withholding without increasing take-home pay.

Year-to-date (YTD) totals: Every pay stub should include year-to-date totals for gross earnings, each tax category, and all deductions. YTD figures help employees verify that their W-2 is accurate at year-end and track whether they're approaching limits like the Social Security wage base or 401(k) contribution maximum ($23,500 for 2025, $31,000 for employees 50 and older).