A pay stub is the statement an employer gives an employee each payday showing gross pay, every tax and deduction, and the resulting net pay for that period and year to date. It can be paper or electronic and is also called a pay slip, earnings statement, or wage statement.
Key takeaways
- Federal law doesn't require pay stubs, but most states require some form of wage statement.
- A good stub shows hours, rates, gross pay, each tax, each deduction, net pay, and year-to-date totals.
- States such as California and New York specify exact items and impose penalties for missing ones.
- Electronic stubs are generally allowed if employees can access and print them.
How pay stub works
The FLSA requires employers to keep detailed payroll records, but it doesn't require you to hand employees a statement (US Department of Labor, Fair Labor Standards Act). States fill that gap. Most require a written or electronic wage statement every payday, and several define what it must contain. California's Labor Code section 226, for example, lists nine required items, including total hours for non-exempt staff, all deductions, the pay period dates, the employee's name and last four digits of a Social Security number or an ID number, and the legal name and address of the employer.
A typical stub has four blocks. Earnings show hours and rates for regular time, overtime, PTO, and bonuses. Taxes list federal, state, Social Security, and Medicare withholding. Deductions cover benefits, retirement, and garnishments. Summary totals show gross, net, and year-to-date figures. Many stubs also show PTO balances and employer contributions to benefits.
Pay stub example
A nursing assistant compares two stubs after open enrollment and sees net pay fell by $38.40. The stub shows exactly why: the medical deduction rose from $64.00 to $96.00 per period, and a new $6.40 vision deduction appeared. Without a clear stub, that change becomes a call to HR. With one, it's self-explanatory.
If your stubs confuse employees, the issue is usually labeling. Replace codes like "DED7" with plain names, and show the pay period dates and the pay date separately.
Why pay stub matters for employers
Pay stubs are both a compliance record and an employee experience touchpoint. Wage statement violations are a frequent add-on claim in wage and hour lawsuits, especially in California, where penalties apply per employee per pay period.
Stubs also matter outside work. Employees use them to prove income for apartments, car loans, and mortgages, and they rely on them to spot mistakes. With about 43% of private establishments paying biweekly (BLS, length of pay period survey), most employees see 26 stubs a year, so small labeling improvements add up.
Modern payroll systems publish stubs through an employee self-service portal or mobile app, which cuts reprint requests and lets employees download W-2s at year end.
Common pay stub mistakes to avoid
Leaving out hours for non-exempt employees
Several states require total hours worked on the statement, not just pay amounts.
Showing the wrong employer name
Use the legal entity name. A brand name alone may not satisfy state rules.
Removing access after termination
Former employees often need stubs for unemployment claims. Keep access available or provide copies on request.
Displaying full Social Security numbers
Use the last four digits or an employee ID to limit identity theft risk.
Pay stub: questions people also ask
Are employers required to provide pay stubs?
What information is on a pay stub?
Can an employer give pay stubs electronically?
How long should employers keep pay stub records?
Is a pay stub proof of income?
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HRTally glossary entries are written by people who have run US payroll, benefits, and HR operations, then checked line by line against primary sources such as the IRS, Department of Labor, EEOC, and Bureau of Labor Statistics. Dollar limits and rates are for 2026 unless stated. We review every entry at least twice a year and whenever a rule changes. This page explains general rules and isn't legal or tax advice; state law can differ. Read our editorial standards.
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<blockquote>A pay stub is the statement an employer gives an employee each payday showing gross pay, every tax and deduction, and the resulting net pay for that period and year to date. It can be paper or electronic and is also called a pay slip, earnings statement, or wage statement.</blockquote><p>Source: <a href="https://www.hrtally.com/hr-glossary/pay-stub/">HRTally HR Glossary, Pay stub</a></p>
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.