What is a pay stub?

A pay stub is a document issued by an employer that shows an employee's gross earnings, deductions from those earnings, and net pay. Pay stubs are created in conjunction with paychecks, so each employee gets a new pay stub for each pay period.

A pay slip may be created as a separate part of a paper paycheck, or it may be in electronic form, typically emailed to employees or made available online to confirm direct deposit of their paycheck.

A pay stub may also be called a paycheck stub, salary statement, income statement, or pay slip.

What is written on the pay slip?

Pay stubs show the total amount earned by the employee, the amount deducted from that income, and the pay remaining after deductions. Separate columns show the current pay period and year-to-date figures.

Pay stubs show:

• The total amount earned  (  gross wages), which may include:
  • Regular pay (salary or hourly earnings)
  • Commissions
  • Bonus
  • sick pay
  • Holiday pay
  • Vacation pay
  • Payroll advances
• Deductions, which may include the following:
  • Federal Taxes
  • state tax
  • Local taxes
  • FICA Tax (Social Security)
  • Treatment
  • Employee insurance premiums
  • Retirement or pension plan contributions
  • Decoration
  • Loan Payment
  • Charitable contributions

Some employers' pay forms also indicate how many remaining sick leave and vacation hours an employee should accrue during the current year.

Workers who are paid hourly and  salaried non-exempt employees  will see more details about their gross pay when applicable, including:

• hourly pay rate
• Number of hours worked at regular pay rate
• for a longer period of time
• Shift Difference
• Tips

Is it mandatory for employers to provide pay slips?

In the United States, no federal law requires employers to give employees pay slips, but many states do require them. The details of those requirements vary from state to state, so it  's important to consult state labor offices  , especially if your organization does business in more than one state.

Even in states that don't require pay slips, employers are required to keep records of employees' earnings and hours worked under the Fair Labor Standards Act, and employees have the right to request this information.

How are pay stubs created?

When a business is new, small or has very limited resources, it has no choice but to handle pay stubs and other payroll responsibilities the hard way – manually. Doing payroll this way can mean relying on a pile of spreadsheets, paper documents, different websites, etc. every pay period. If you only have a few employees, it is possible to do this, but it is complicated and time-consuming. Payroll software is a better option for small businesses and becomes essential as they grow. It is fast and easy to issue paychecks and pay stubs after entering data for each employee.