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What Is a Pay Stub? Everything You Need to Know
Understand what a pay stub is, what information it contains, and why it matters. Complete guide to pay stubs for employees and employers in 2026.
Best Paystub Generator creates simulated earnings documents for lawful personal record-keeping. It does not verify employment or income and does not replace records issued by an employer or payroll provider.
A pay stub is an earnings statement issued with a paycheck or direct-deposit payment. It breaks down wages, taxes, deductions, and net pay for one pay period. It is also called a paycheck stub, pay slip, or wage statement.
An employer-issued pay stub is a payroll record. A document created with a generator is a draft or personal record unless the employer or authorized payroll provider issues and verifies it.
Key Components of a Pay Stub
Gross Pay
Your total earnings before any deductions. This includes:
- Regular wages (hourly rate × hours worked)
- Overtime pay (typically 1.5× regular rate)
- Bonuses and commissions
- Tips and gratuities
Tax Withholdings
Taxes automatically deducted from your gross pay:
- Federal Income Tax — based on your W-4 filing status
- State and local income tax — where applicable
- Social Security (FICA) — 6.2% up to $184,500 (2026)
- Medicare — 1.45% (additional 0.9% for high earners)
Voluntary Deductions
Pre-tax or post-tax deductions you've elected:
- Health insurance premiums
- 401(k) or retirement contributions
- Life insurance
- Flexible Spending Account (FSA)
- Health Savings Account (HSA)
Net Pay
Your take-home pay — the amount deposited into your bank account after all taxes and deductions.
Year-to-Date (YTD) Totals
Cumulative totals from January 1 through the current pay period. These help you:
- Track your annual earnings
- Verify your W-2 at year-end
- Estimate remaining tax liability
Why Pay Stubs Matter
For Employees
- Income verification for apartment applications, mortgages, and car loans
- Tax preparation — verify amounts before filing
- Budgeting — understand exactly where your money goes
- Error detection — catch payroll mistakes early
For Employers
- Legal compliance — many states require pay stubs by law
- Employee transparency — build trust through clear documentation
- Record keeping — essential for audits and disputes
- Tax reporting — accurate withholding records
Are Employers Required to Provide Pay Stubs?
Federal rules require employers covered by the Fair Labor Standards Act to keep accurate records of hours worked, wages, additions, deductions, payment dates, and pay periods. Federal law does not prescribe one universal pay-stub format. Employee statement and delivery rules vary by state, so employers should verify the current requirements with the relevant state labor agency.
Sources: U.S. Department of Labor recordkeeping requirements and 29 CFR Part 516.
How to Read Your Pay Stub
Understanding your pay stub is crucial. Here's what each section means:
- Employee Info — Your name, address, and last 4 of SSN
- Pay Period — The dates this pay stub covers
- Earnings — Itemized list of all income sources
- Deductions — Each tax and voluntary deduction, listed separately
- Net Pay — Your take-home amount
- YTD — Running totals for the calendar year
For a detailed guide on every abbreviation, check our paystub codes guide.
Common Pay Stub Abbreviations
| Code | Meaning |
|---|---|
| FIT / FWT | Federal Income Tax / Federal Withholding Tax |
| SIT / SWT | State Income Tax / State Withholding Tax |
| FICA | Federal Insurance Contributions Act (SS + Medicare) |
| OASDI | Old Age, Survivors, and Disability Insurance (Social Security) |
| YTD | Year-to-Date |
| OT | Overtime |
| REG | Regular Pay |
Frequently Asked Questions
How long should I keep my pay stubs?
Employees commonly keep pay stubs until they have checked the year's totals against Form W-2 and resolved any discrepancy. Employers must keep employment-tax records for at least four years, according to the IRS. Records supporting an individual tax return are generally kept for at least three years, but longer periods can apply. See the IRS employment-tax recordkeeping guidance.
Can a self-employed person create a pay stub?
A self-employed person can create an internal earnings statement for bookkeeping, but it is not an employer-issued pay stub and may not be accepted as third-party proof of income. The IRS identifies invoices, receipts, bank statements, payment-processor statements, Forms 1099, and tax records as supporting business-income records. See the IRS document checklist.
What's the difference between a pay stub and a W-2?
A pay stub covers a single pay period, while a W-2 summarizes your entire year's earnings and tax withholdings. Your final pay stub's YTD totals should match your W-2.
Need a calculation draft or personal earnings record? Open the paystub generator.