What Is a Pay Stub?

Key Components of a Pay Stub

Every pay stub contains several essential line items that show how your gross earnings are reduced to your take-home pay. Understanding each component helps you verify that your employer is withholding the correct amounts and that your paycheck is accurate.

• Gross Pay - The total amount earned before any deductions. For hourly employees this is hours worked multiplied by the hourly rate; for salaried employees it is the salary amount for the pay period.
• Federal Income Tax - The amount withheld for federal income taxes, determined by the employee's W-4 form selections, filing status, and income level. This is paid to the IRS.
• State Income Tax - Varies by state. Some states (Texas, Florida, Nevada, and others) have no state income tax, while others range from around 1% to over 13% at the top bracket.
• Social Security (FICA) - 6.2% of gross pay up to the annual wage base limit ($184,500 in 2026). Both employer and employee pay this amount.
• Medicare - 1.45% of all gross pay with no wage base limit. An additional 0.9% Medicare surtax applies to earnings over $200,000 for individuals.
• Net Pay - Also called take-home pay, this is what the employee actually receives after all deductions: Net Pay = Gross Pay minus All Deductions.

Other Information on a Pay Stub

Beyond earnings and deductions, a pay stub includes identifying and administrative details that are important for record-keeping. These fields help both the employee and employer maintain accurate payroll records throughout the year.

• Employee information: name, address, and Social Security number (often partially masked for security)
• Employer information: company name, address, and EIN (Employer Identification Number)
• Pay period: the start and end dates of the period covered by the paycheck
• Pay date: the date the payment was actually issued to the employee
• Pay frequency: whether the employee is paid weekly, biweekly, semi-monthly, or monthly
• Year-to-date totals: running totals for gross pay, each deduction category, and net pay since January 1

Who Needs a Pay Stub?

A pay stub flows from an employer to an employee. Whenever wages are paid, the employer owes the worker a record of how that pay was calculated, and in most states that record is legally required. Keeping organized stubs also makes quarterly and year-end filings far simpler.

• Employees - to verify correct payment and track earnings over time
• Small business owners - to provide employees with proper earnings documentation as required by state law
• S-corp owner-employees - to document the W-2 salary they pay themselves from their own company
• Household employers - to give nannies, caregivers, and housekeepers the wage statement most states require
• Bookkeepers - to produce stubs on behalf of very small clients without a payroll platform

State Pay Stub Requirements

Pay stub laws vary significantly from state to state. Some states require employers to provide a written or printed pay stub with each paycheck, while others allow electronic-only access. A handful of states have no pay stub requirement at all. Employers should check their specific state labor department guidelines to ensure compliance.

• Access states (e.g., Colorado, New York) - employers must provide a pay stub automatically with each paycheck
• Opt-in states (e.g., Virginia, Montana) - employers must provide a pay stub if the employee requests one
• No-requirement states (e.g., Alabama, Arkansas) - no state law mandates employers to issue pay stubs
• Electronic delivery - many states now permit employers to provide pay stubs electronically, as long as employees can print them

Create Your Pay Stub

With PaymentStub.com, you can create a professional pay stub in minutes. Choose from five templates, enter your income and deduction details, preview the document, and download your PDF instantly. Our calculator automatically computes federal and state tax withholdings, Social Security, and Medicare so you get an accurate pay stub every time.