A payment stub is the document your employer gives you alongside your paycheck that breaks down what you earned and what was deducted
A payment stub (also called a pay stub, pay slip, or earnings statement) shows exactly how much you were paid, what came out of your paycheck, and what your year-to-date totals are. It arrives with your paycheck—either printed on the check itself, as a separate paper, or as a digital file if you use direct deposit. The stub is not the money; it is the receipt that proves what happened to your pay.
The stub serves two purposes. First, it lets you verify that your employer paid you the right amount and deducted the right taxes. Second, it becomes proof of income when you need to show a landlord, lender, or government agency that you actually earn what you say you do. Without it, you have no way to prove your income except your word.
Key Takeaways
- A payment stub itemizes gross pay, deductions, and net pay for a single pay period, and shows year-to-date running totals.
- Deductions on your stub include federal and state income tax withholding, Social Security and Medicare taxes, and any voluntary deductions like health insurance or retirement contributions.
- Your net pay (take-home) is always less than your gross pay because of mandatory tax withholding and other deductions.
- Employers must provide a stub with every paycheck, whether you receive it on paper or electronically.
The sections of a payment stub and what each one means
Every stub has three main sections: the header with your name and pay period, the earnings section, and the deductions section.
The earnings section shows your gross pay—the total amount you earned before anything was taken out. This includes your regular hourly wages or salary, plus any overtime, bonuses, or commissions you earned that pay period. It also shows your year-to-date gross, which is the running total of everything you have earned since January 1st.
The deductions section lists every dollar that came out of your paycheck. Mandatory deductions include federal income tax withholding, state income tax (if your state has one), Social Security tax (6.2% of gross pay), and Medicare tax (1.45% of gross pay). Voluntary deductions are things you chose: health insurance premiums, 401(k) contributions, life insurance, union dues, or wage garnishments ordered by a court. Each deduction shows the amount for that pay period and the year-to-date total.
The net pay line at the bottom is what you actually take home. It is your gross pay minus all deductions. This is the amount that hits your bank account or the amount written on your physical check.
Why employers must give you a stub and what happens if they do not
Federal law requires employers to provide a pay stub with every paycheck. The stub must be accurate and must show gross pay, deductions, and net pay. Some states have additional rules—for example, California requires stubs to show the pay rate and the number of hours worked, and New York requires stubs to show the employer's address.
If your employer does not give you a stub, or if the stub is missing information, you can file a wage claim with your state's labor department. The department can order your employer to provide the missing information and may assess penalties. If you suspect your employer withheld taxes incorrectly or did not pay you what you earned, the stub is your first piece of evidence.
How to read your stub to spot errors
Check three things every time you get a stub. First, verify that your gross pay is correct—multiply your hourly rate by the hours worked, or check that your salary matches what you were hired at. If you worked overtime, confirm that overtime hours are marked separately and paid at the overtime rate (usually 1.5 times your regular rate).
Second, look at your deductions. Your federal withholding depends on the W-4 form you filled out when you started the job. If you claimed too many exemptions, your withholding will be low and you may owe taxes at the end of the year. If you claimed too few, you will get a refund. Social Security and Medicare taxes should be the same percentage every pay period. If you see a deduction you do not recognize, ask your payroll department what it is.
Third, check your year-to-date totals. These should match the total of all your stubs added together. If the year-to-date number seems too high or too low, it may mean a stub was processed twice or a previous stub had an error.
When you need to show your payment stub to someone else
Landlords ask for recent stubs (usually the last two or three) to verify you have stable income before they rent to you. Lenders ask for stubs when you explore for a mortgage, car loan, or personal loan. Government agencies ask for stubs when you explore for housing information, food information, or childcare subsidies. Courts may ask for stubs in child support or alimony cases.
In all these cases, the stub proves three things: that you actually work, how much you earn, and that your income is regular. A single stub is usually not enough—most organizations want to see two or three recent stubs to confirm the income is consistent. If you are self-employed or do not receive stubs, you can use tax returns or bank statements instead, but stubs are the fastest proof.
The difference between a stub and a W-2 form
A payment stub covers one pay period (usually two weeks or a month). A W-2 form is an annual summary that your employer sends you in January for the previous calendar year. The W-2 shows your total gross pay for the entire year, total taxes withheld, and is used to file your income tax return.
You receive a stub with every paycheck throughout the year. You receive a W-2 once a year, after the year ends. If you add up all your stubs for a year, the gross pay total should match the gross pay on your W-2. If it does not, something was recorded incorrectly and you should contact your payroll department.
Digital stubs and how to keep them organized
Many employers now provide stubs electronically through a payroll portal or email. Digital stubs are just as valid as paper stubs and satisfy the legal requirement. If your employer offers a portal, you can usually read stubs as PDF files and save them to your computer.
Keep your stubs for at least three years. Save them in a folder on your computer or in cloud storage like Google Drive. When you need to prove income to a landlord or lender, you can print recent stubs or send digital copies. If you lose access to your employer's portal after you leave a job, read all your stubs before your last day. If you cannot retrieve old stubs, your employer is legally required to provide copies if you ask in writing.
Frequently Asked Questions
What if my net pay does not match what I expected?
Check your gross pay first—make sure hours and rate are correct. Then add up all deductions and subtract from gross pay. If the math does not work, contact payroll. Common reasons for surprise deductions: a new health insurance plan started, a 401(k) contribution increased, or a wage garnishment was added.
Can I use a stub from six months ago to prove income?
Most landlords and lenders want recent stubs, usually from the last 30 days. Older stubs may be accepted if you have not changed jobs, but they are weaker proof that your current income is still the same. If you have recent stubs, use those instead.
Why is my year-to-date total different from what I calculated?
Year-to-date totals reset on January 1st each year. If you are looking at a stub from January, the year-to-date is just that one pay period. Also check that you are adding the right column—some stubs show separate year-to-date for gross pay, federal tax, and other deductions.
What should I do if my stub shows the wrong deductions?
Contact your payroll or human resources department when ready with the stub in hand. They can check your W-4 form and any benefits elections on file. If the deduction is wrong, they can issue a corrected stub and adjust your next paycheck. Keep the corrected stub for your records.
Do I need to keep paper stubs if I have digital copies?
Digital copies are sufficient if they are clear and complete. Store them in at least two places—your computer and cloud storage—so you do not lose them if one device fails. You do not need to print them unless you need to show them to someone who cannot accept digital files.