What Is a Pay Stub?

A pay stub shows how your employer calculated your pay for a specific pay period, including what you earned, what was withheld or deducted, and how much you received. It typically lists gross pay, earnings such as regular hours or overtime, taxes and other deductions, net pay, and year-to-date totals. Reviewing it against your hours and other pay records can help you identify a missing payment, an unexpected deduction, or a change in withholding. Employers may provide pay statements on paper or electronically, and state requirements for providing them can differ. Because a pay stub can also document income, it is useful to understand its entries and keep a copy you can access later.

A pay stub, also called a paycheck stub, pay slip, payment stub, or wage statement, accompanies or documents a payroll payment. It itemizes how wages were calculated during a payroll cycle. This breakdown can help employees review tax withholding, benefit contributions, and hours worked. A pay stub may come with a paper paycheck, appear in an employee self-service portal, or be sent electronically. Its layout depends on the employer and payroll system, but its purpose is the same: to show how pay earned becomes pay received.

What Information Does a Pay Stub Show?

The exact layout varies by employer and payroll system, but many pay stubs include identifying details, earnings, deductions, net pay, and year-to-date totals. Reviewing these entries together helps explain how the payment was calculated.

Employee, Employer, and Pay Period Details

The identifying section may show the employee's name or identification number, the employer's name and address, the pay period's start and end dates, the payment date, and the employee's pay rate or salary information. These details help confirm that the statement belongs to the right person and covers the expected period.

Gross Pay

Gross pay is the amount earned before deductions. It may include regular wages, overtime, commissions, bonuses, paid time off, or other compensation. For an hourly employee, gross pay is generally calculated from hours worked and the applicable pay rate. For a salaried employee, it may be a consistent amount each pay period, with adjustments for items such as a bonus or unpaid leave.

Different pay rates and compensation arrangements can affect how earnings appear. Learn more about what a wage rate means.

Deductions and Withholdings

Deductions are amounts subtracted from gross pay. They may include federal, state, or local income tax withholding, Social Security and Medicare taxes, health or other benefit contributions, retirement-plan contributions, wage garnishments, or union dues where applicable. Tax withholding is one part of this total. For example, federal income tax withholding is an amount withheld from wages and reported separately from other deductions.

Not every deduction is a tax. Some reflect an employee's benefit or retirement-plan choices, while others are required withholdings or authorized deductions. Whether a deduction is taken before or after taxes can affect its impact on take-home pay. Learn more about pre-tax deductions and how they affect a paycheck.

Net Pay

Net pay is what remains after deductions and is often called take-home pay. If you receive direct deposit, the net-pay figure should generally correspond to the amount deposited. Split deposits or other payment arrangements can mean the full amount is sent to more than one account.

Year-To-Date Totals

Many statements show year-to-date, or YTD, totals alongside the current pay-period figures. YTD amounts accumulate earnings, taxes, deductions, and net pay from the start of the year through the current payment. They can help you see recurring deductions over time and distinguish them from one-time earnings such as a bonus.

How Do Gross Pay and Net Pay Fit Together?

The basic relationship is that gross pay is reduced by taxes and other deductions to arrive at net pay. For example, an employee earning $20 per hour who works 80 regular hours in a two-week pay period has $1,600 in gross regular pay. If the statement shows $350 in taxes and other withholdings, a $100 health-plan contribution, and an $80 retirement contribution, net pay is $1,070.

This is a simplified illustration, not a prediction of any employee's actual paycheck. Withholding and deductions vary according to individual circumstances and payroll arrangements. The example shows why the deposit can be lower than gross pay and why each line on the stub matters. If the employee expected 80 hours but the statement lists 76, the pay stub identifies a specific discrepancy to ask payroll or a manager about.

Why Should You Keep and Review Pay Stubs?

A pay stub lets you check whether hours, rates, overtime, bonuses, and commissions were recorded correctly. Reviewing it soon after payday can make a potential error easier to identify while the pay period is still fresh.

It also helps explain a change in take-home pay. Fewer hours, a benefit election, a retirement contribution, or a one-time deduction may account for a smaller deposit. The itemized statement gives you a starting point for asking a specific question instead of guessing.

Pay stubs may also serve as proof of income when a landlord, lender, or another organization asks for documentation. Keep copies in a secure place, especially if your employer's payroll portal makes statements available only for a limited time.

Are Employers Required to Provide Pay Stubs?

There is no single federal requirement that every U.S. employer issue a pay stub in one specific format. Requirements are largely determined by state law. Xero explains that states differ in whether employers must provide written or electronic wage statements and what details those statements must include. The rules may also affect how employees can access their pay information.

Because requirements vary, a statement that looks typical in one state may not meet the rules in another. Not receiving a pay stub is not automatically a violation everywhere. If you do not receive one, ask your employer or payroll contact how to obtain a wage statement. Employers need to account for the requirements that apply to their workforce.

How Can You Review a Pay Stub?

After payday, compare the statement with your own records. Check that the pay period and payment date are correct, then review your hours and pay rate against your schedule or approved timecard. Confirm that expected overtime, commissions, bonuses, or other earnings appear. Look for unfamiliar deductions or amounts that changed unexpectedly, and compare net pay with your bank deposit when applicable. YTD totals can also help reveal patterns or inconsistencies over time.

Keep records of hours worked, leave taken, and pay-related agreements. A pay stub is more useful when you can compare it with those records.

What Should You Do If Something Looks Wrong?

Gather the relevant pay stub and supporting records, such as a timecard, schedule, or documentation about a bonus, commission, or deduction. Contact the appropriate person, such as your manager, human resources representative, or payroll team. Identify the payment date and the line item in question, then explain what you expected and why. Keep a written record of your question and the response.

If the issue is not resolved, consider guidance that fits your circumstances and location. Asking promptly gives the employer a clear opportunity to explain or investigate the entry.

How Do Pay Stubs Apply to Contingent Workers?

Contingent workers who are paid as employees may also receive pay statements showing their earnings, deductions, and net pay. The employer or payroll arrangement can affect where the statement is available, so workers should know which organization or payroll contact to approach with questions. Independent contractors are generally paid under a different arrangement and may not receive employee pay stubs. If you are unsure which category applies to your work, clarify your employment and payment arrangement rather than assuming every payment statement works the same way.

*This article is for general informational purposes only and is not legal advice.