A payment stub is the document your employer gives you alongside your paycheck that breaks down how much you earned and what was deducted

A payment stub (also called a pay stub, paycheck stub, or earnings statement) shows your gross pay for that period, the deductions taken out, and your net pay—the amount you actually receive. It lists federal and state taxes withheld, Social Security and Medicare contributions, health insurance premiums, retirement contributions, and any other deductions your employer makes. The stub covers a specific pay period: weekly, biweekly, semimonthly, or monthly, depending on your employer's schedule.

Your employer is required to provide a payment stub with every paycheck or make it available electronically. The stub is not optional—it is a record of the transaction between you and your employer, and you need it for taxes, loans, housing applications, and disputes about what you were paid.

Key Takeaways

  • A payment stub shows your gross pay, all deductions, and your net pay for a single pay period, and your employer must provide one with every paycheck.
  • Gross pay is what you earned before deductions; net pay is what you actually receive after taxes and other withholdings are removed.
  • You will need recent pay stubs to prove income for loans, rental applications, tax returns, and wage disputes.
  • If your employer does not provide a stub or the numbers are wrong, you can request a corrected one or file a wage claim with your state labor department.

What information appears on a payment stub

Every payment stub contains your name, address, and employee ID; your employer's name and address; the pay period dates; and your pay rate or salary. It then lists your gross pay—the total amount you earned before anything is taken out—and itemizes every deduction.

Common deductions include federal income tax withholding (based on the W-4 you filed), state and local income taxes, Social Security tax (6.2 percent of gross pay), and Medicare tax (1.45 percent of gross tax). If you have health insurance through your employer, the premium comes out here. Retirement contributions (401(k), 403(b), or similar plans) also appear as deductions. Some stubs show voluntary deductions like life insurance, dependent care accounts, or union dues.

At the bottom is your net pay—the amount deposited into your bank account or included in your check. Many stubs also show year-to-date totals for gross pay, taxes withheld, and deductions, so you can track your earnings and withholdings across the entire year.

Gross pay versus net pay

Gross pay is what you earned in that pay period before any deductions. If you are paid hourly, it is your hourly rate multiplied by the hours you worked. If you are salaried, it is your annual salary divided by the number of pay periods in a year. Bonuses, overtime, and shift differentials are added to gross pay.

Net pay is what you take home. It is gross pay minus all deductions. The difference between the two can be substantial—typically 20 to 30 percent of gross pay goes to taxes and other withholdings, though this varies by income, state, and what deductions you have chosen.

Understanding the difference matters because lenders, landlords, and government agencies often ask for your gross income, not your net. Your gross pay is what determines whether you may have access to for a loan or can afford an apartment. Your net pay is what you actually have to spend.

Why you need to keep payment stubs

Payment stubs are proof of income. Lenders require recent stubs (usually the last two or three months) when you apply for a mortgage, car loan, or personal loan. Landlords ask for them to verify you can pay rent. Government programs use them to determine whether you meet income limits. If you are self-employed or a contractor, you may need to provide stubs to prove you are a legitimate employee if you are also working a W-2 job.

You also need stubs for your tax return. The IRS does not require you to attach them, but they are proof that your employer withheld the correct amount of tax. If your withholding was too high, you will get a refund; if it was too low, you owe. Your stubs show how much was withheld, which you need to reconcile with your actual tax liability.

Keep stubs for at least three years. If a wage dispute arises—your employer underpaid you, miscalculated overtime, or made an error—your stubs are the first evidence. If you need to file a wage claim with your state labor department, you will need copies of the stubs showing what you should have been paid.

How to read your payment stub

Start at the top: verify your name, address, and pay period dates are correct. Check the gross pay amount against your hourly rate or salary. If you are paid hourly, multiply your rate by the hours worked; if the gross pay does not match, ask your employer to explain.

Next, scan the deductions. Federal and state income tax withholding should be roughly proportional to your gross pay—if you earn significantly more one month but the tax withholding stays the same, something may be wrong. Social Security and Medicare taxes are fixed percentages (6.2 percent and 1.45 percent), so they should scale with gross pay. Health insurance and retirement contributions should match what you enrolled in.

Finally, check the net pay. It should equal gross pay minus all deductions. If the math does not add up, or if a deduction appears that you did not authorize, contact your employer's payroll department immediately. Do not assume the error will fix itself.

What to do if your payment stub is wrong or missing

If your employer does not provide a stub with your paycheck or does not make one available online, request one in writing. Keep a copy of your request. Most employers are required by state law to provide a stub, and if yours refuses, you can file a complaint with your state's labor department or wage and hour division.

If the stub contains an error—wrong gross pay, missing deduction, incorrect tax withholding—contact payroll immediately and ask for a corrected stub. Errors happen, and most employers will fix them quickly. If your employer refuses to correct a clear mistake, or if you believe you were underpaid, you can file a wage claim with your state labor department. You will need copies of the incorrect stubs as evidence.

If you lose your stubs, ask your employer for copies. They are required to keep payroll records for a set period (usually three to seven years, depending on your state), so they can print duplicates. If your employer is no longer in business or refuses to provide them, contact your state labor department—they may be able to help you obtain wage records.

Payment stubs and tax filing

Your payment stubs show how much federal and state income tax your employer withheld during the year. Your employer also sends you a W-2 form by January 31 each year, which summarizes your gross pay and all withholdings for the entire year. The W-2 is what you use to file your tax return, not the individual stubs.

However, your stubs are useful for checking the W-2 against. If the W-2 shows different gross pay or withholding than your stubs add up to, contact your employer to correct it before you file. Errors on the W-2 can delay your refund or trigger an audit.

If you are self-employed or a contractor, you do not receive a W-2. Instead, you receive a 1099 form from clients who paid you more than $600 in a year. You do not get payment stubs, so you need to track your income and expenses yourself and keep records of all payments received.

Frequently Asked Questions

Can my employer give me my paycheck without a stub?

No. Federal law and most state laws require employers to provide a payment stub with every paycheck or make one available electronically. If your employer refuses, you can file a complaint with your state's labor department or wage and hour division.

What if my employer withholds too much tax?

You will get a refund when you file your tax return. If you want to reduce withholding during the year, fill out a new W-4 form and give it to payroll. They will adjust your withholding for future paychecks. Keep your stubs to verify the change takes effect.

Do I need to provide original stubs or can I use copies?

Copies are usually fine for loans, rental applications, and most government programs. Some lenders may ask for originals or may verify income directly with your employer. Ask what the lender or landlord needs before you submit anything.

What if I was paid cash and have no stub?

Ask your employer for a receipt or written statement of what you were paid and when. If they refuse to document it, that is a red flag—you may be working off the books, which means no taxes are being withheld and you have no proof of income if you need it later. Consider requesting a formal arrangement with a stub.

How long should I keep old payment stubs?

Keep them for at least three years. If a wage dispute arises or you need to prove income for a loan or application, you may need stubs from several months or years back. After three years, you can discard them unless you have a specific reason to keep them longer.