The Complete Pay Stub Guide
Everything you need to know about pay stubs — what they are, what to include, and how to stay compliant.
What Is a Pay Stub?
A comprehensive look at pay stubs — what they are, who needs them, and why they matter for employers, employees, and self-employed professionals alike.
Required in most U.S. states
The Official Record of Your Earnings
A pay stub is a document — either printed or digital — that accompanies every paycheck or direct deposit. It breaks down exactly how an employee's gross wages were earned and how their net pay was calculated after all deductions.
Whether you're a small business owner running payroll for the first time, a freelancer needing proof of income, or an employee trying to understand your take-home pay, pay stubs are an essential financial document.
Did you know? Over 40 U.S. states have laws governing pay stub requirements. Not providing them correctly can result in fines and penalties for employers.
What Is a Pay Stub?
A pay stub (also called a paycheck stub or pay slip) is a document that accompanies an employee's paycheck detailing their earnings, deductions, and net pay for a given pay period. It serves as an official record of compensation.
Why Employers Need Them
Employers use pay stubs to maintain accurate payroll records, demonstrate tax withholding compliance, and provide transparent wage documentation. Many states legally require employers to provide pay stubs with each paycheck.
Why Employees Need Them
Employees rely on pay stubs to verify their wages, understand tax withholdings, confirm benefit deductions, and provide proof of income when applying for loans, housing, or government benefits.
When Are They Issued?
Pay stubs are issued each pay period — whether weekly, bi-weekly, semi-monthly, or monthly — alongside each paycheck or direct deposit. Freelancers and self-employed individuals may generate them on demand.
Who Needs Pay Stubs?
Pay stubs serve a wide range of individuals and organizations across the employment and business landscape.
Small Business Owners
Manage payroll and stay legally compliant in every state you operate.
Freelancers & Contractors
Generate pay stubs to provide proof of income for loans or rental applications.
HR Professionals
Streamline payroll documentation and ensure every employee receives accurate stubs.
Employees
Understand exactly what's being withheld and how your net pay is calculated.
What to Include on a Pay Stub
A complete, professional pay stub contains six core sections. Missing any of these fields can lead to compliance issues or employee disputes. Use this checklist to make sure every pay stub you generate covers all the essentials.
Employee Information
Full legal name and identifying details for the employee receiving payment.
- Full legal name
- Employee ID or SSN (last 4 digits)
- Home address (optional in some states)
Employer Details
Business name, address, and federal employer identification number (EIN).
- Business / company name
- Employer address
- Federal EIN
Pay Period & Pay Date
The exact dates covered by this paycheck and the date payment is issued.
- Pay period start & end dates
- Check / payment issue date
- Pay frequency (weekly, bi-weekly, etc.)
Gross Wages
Total earnings before any deductions — includes regular pay, overtime, bonuses, and commissions.
- Regular / hourly pay rate
- Hours worked this period
- Overtime, bonus & commission earnings
Deductions
All withholdings taken from gross wages — federal & state taxes, Social Security, Medicare, benefits, and retirement.
- Federal & state income tax
- Social Security & Medicare (FICA)
- Health insurance & 401(k) contributions
Net Pay
The final take-home amount the employee receives after all deductions have been applied.
- Net pay (take-home amount)
- Year-to-date (YTD) totals
- Payment method (direct deposit / check)
State requirements vary. Some states mandate additional fields — such as the applicable minimum wage rate or hours for salaried exempt employees. Review your state's rules on the State Requirements page to ensure full compliance.
Understanding Deductions & Taxes
Every pay stub lists a series of deductions that reduce your gross pay to net pay. Here's a breakdown of the most common deductions — and the crucial difference between pre-tax and post-tax.
Federal Income Tax
Withheld by employers based on the employee's W-4 form. Amount depends on filing status, allowances, and income level. Calculated using IRS tax brackets.
- Based on IRS withholding tables
- Determined by W-4 elections
- Adjusted for pay frequency
State Income Tax
Varies by state — some states have no income tax (e.g., Texas, Florida), while others may have flat or graduated rates. Always verify your state's current requirements.
- 9 states have no income tax
- Flat or graduated rates
- State-specific withholding forms
Social Security Tax
Part of FICA (Federal Insurance Contributions Act). Employees contribute 6.2% of wages up to the annual wage base limit. Employers match this amount.
- Employee rate: 6.2%
- Employer match: 6.2%
- Annual wage base cap applies
Medicare Tax
The second FICA component. Employees pay 1.45% of all wages with no cap. High earners (over $200K) pay an additional 0.9% Additional Medicare Tax.
- Employee rate: 1.45%
- No wage base limit
- +0.9% for wages over $200K
Health Insurance
Employee premiums for employer-sponsored health, dental, and vision plans. These are typically deducted pre-tax under Section 125 cafeteria plans, reducing taxable income.
- Medical, dental & vision
- Reduces taxable income
- Section 125 cafeteria plan
Retirement Contributions
401(k) contributions are typically pre-tax; Roth 401(k) contributions are post-tax. Contributions reduce your current taxable income and help build long-term savings.
- Traditional 401(k) — pre-tax
- Roth 401(k) — post-tax
- IRS annual contribution limits
Pre-Tax vs. Post-Tax Deductions
Understanding whether a deduction is pre-tax or post-tax directly impacts how much you owe in federal, state, and FICA taxes.
Pre-Tax Deductions
Reduce your taxable income
- Health insurance premiums (Section 125)
- Traditional 401(k) / 403(b) contributions
- HSA & FSA contributions
- Life insurance premiums (up to $50K coverage)
- Commuter/transit benefits
💡 Pre-tax deductions lower your gross taxable wages — you pay less in income tax now.
Post-Tax Deductions
Taken from net pay after taxes
- Roth 401(k) / Roth IRA contributions
- Wage garnishments & child support
- Union dues
- Charitable contributions
- Life insurance premiums (over $50K coverage)
💡 Post-tax deductions don't reduce taxable income, but may offer other tax benefits at filing time.
How Deductions Flow: Gross → Net Pay
A simplified example for a $4,000 bi-weekly paycheck
Federal Income Tax
Single, 1 allowance
State Income Tax
Varies by state
Social Security (6.2%)
FICA
Medicare (1.45%)
FICA
Health Insurance
Pre-tax
401(k) Contribution
Pre-tax, 5%
This is a simplified illustration. Actual deductions vary based on your filing status, state, benefit elections, and current tax rates. Always consult a tax professional for personalized guidance.
Pay Stub Laws & Legal Requirements
Employer obligations vary significantly by state. Understand which states require pay stubs, federal record-keeping mandates, and the penalties for non-compliance.
Record-Keeping Rules
The Fair Labor Standards Act (FLSA) requires employers to retain payroll records for at least 3 years. This includes hours worked, wage rates, and total earnings per pay period.
Non-Compliance Penalties
Employers who fail to provide required pay stubs may face fines ranging from $50 to $4,000 per violation depending on the state, plus potential civil lawsuits from employees.
Electronic Pay Stubs
Most states accept digital/electronic pay stubs, provided employees have reasonable access to view and print them. Employee consent may be required in some jurisdictions.
Multi-State Employers
If your business operates in multiple states, you must comply with the strictest applicable pay stub law for each employee based on their work location — not your headquarters.
State Pay Stub Requirements at a Glance
Mandatory Pay Stub States
These states require employers to provide written or printed pay stubs to employees with each paycheck.
Access-Only States
Employers must provide access to pay stubs (electronic or paper), but employees can opt out of printed copies.
No State Requirement
These states have no specific pay stub law, but federal FLSA record-keeping rules still apply to all employers.
Important: Laws Change Frequently
Pay stub laws are updated regularly at the state and federal levels. Always consult a qualified HR professional or employment attorney to confirm the current requirements for your specific state and industry. The information on this page is for general reference only and does not constitute legal advice.
Need detailed state-by-state pay stub requirements and compliance checklists?
View Full State Requirements GuidePay Stub FAQs
Answers to the most common questions about pay stubs — from legal requirements to self-employment income documentation.
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