Pay Stub
What Is Pay Stub?
A pay stub is a document that provides a detailed breakdown of an employee’s earnings and deductions for a specific pay period.
Pay stubs accompany paychecks or electronic payments and show how the final pay amount was calculated.
Why It Matters
Pay stubs help employees understand their compensation and track taxes, benefits, and deductions.
They also provide records that may be needed for loans, tax filing, or financial verification.
How Pay Stub Works
A typical pay stub includes:
- gross pay
- taxes withheld
- benefit deductions
- retirement contributions
- net pay
Employees can review pay stubs to verify accuracy and track earnings throughout the year.
Example
A pay stub may show that an employee earned $1,800 in gross pay, paid $400 in taxes and deductions, and received $1,400 in net pay.
Pay Stub vs Paycheck
- A pay stub explains the breakdown of earnings and deductions.
- A paycheck is the payment itself.
FAQs About Pay Stubs
Do employers provide pay stubs?
Most employers provide pay stubs either digitally or on paper.
Why should employees keep pay stubs?
They help track income and verify earnings.
Can pay stubs be used as proof of income?
Yes. Many lenders accept pay stubs as income verification.
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