A pay stub is the statement your employer gives you each pay period that shows your gross earnings, everything withheld from that amount, and the net pay you actually receive. It explains, line by line, why the deposit in your bank account is smaller than the salary or hourly rate you agreed to. Federal law requires employers to keep the underlying payroll records but does not require them to hand you a copy; that obligation comes from state law, and roughly 41 states impose some version of it.
What Appears on a Pay Stub
Two numbers frame the whole document. Gross pay is your total earnings for the pay period before anything is taken out, calculated from your hourly rate and hours worked or from your salary divided across pay periods. Net pay, sometimes labeled “take-home pay,” is what remains after taxes and other deductions. The lines in between explain the gap.
Tax Withholdings
Your employer withholds federal income tax from each paycheck based on the information you provide on Form W-4, including filing status and any adjustments you claim for dependents or additional deductions.1Internal Revenue Service. Tax Withholding for Individuals If you work in a state with an income tax, a separate state income tax line appears as well. Some cities and counties also impose local income taxes, which show up as their own line item.
The Federal Insurance Contributions Act (FICA) adds two more withholdings. Social Security tax is 6.2% of your gross wages, and Medicare tax is 1.45%. Your employer pays matching amounts on top of what comes out of your check.2Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates The 6.2% Social Security tax only applies to earnings up to $184,500 in 2026; once your year-to-date wages reach that cap, Social Security withholding stops for the rest of the year.3Social Security Administration. Contribution and Benefit Base Medicare has no earnings cap, and if your wages exceed $200,000 in a calendar year (or $250,000 if you’re married filing jointly), an additional 0.9% Medicare tax applies to earnings above that threshold.4Internal Revenue Service. Topic No. 560, Additional Medicare Tax
Voluntary and Benefit Deductions
Below the tax lines, you’ll typically see deductions you elected: health insurance premiums, dental or vision coverage, and contributions to a 401(k) or similar retirement plan. Many of these come out on a pre-tax basis, meaning they reduce the income on which your taxes are calculated, so they lower both your tax bill and your net pay in the same paycheck.
Some stubs also list “imputed income,” a non-cash benefit your employer provides that the IRS treats as taxable. The most common example is employer-provided group term life insurance: coverage above $50,000 triggers a taxable amount added to your reported income even though you never receive it as cash.5Internal Revenue Service. Group-Term Life Insurance Imputed income increases your tax withholding slightly but does not change your net deposit.
Pay Period and Year-to-Date Totals
Each stub identifies the start and end dates of the pay period so you can verify which hours or workdays are covered. It also shows year-to-date (YTD) totals, running sums of your earnings, taxes, and deductions from January 1 through the current pay date. YTD figures help you estimate your annual tax liability, watch for the Social Security wage base, and confirm that your final stub of the year matches the figures on your W-2.
Does Your Employer Have to Give You a Pay Stub?
Under the Fair Labor Standards Act, employers must keep detailed payroll records for each employee, but the law does not require them to give you a copy.6Office of the Law Revision Counsel. 29 USC 211 – Collection of Data The point of the federal rule is to let Department of Labor investigators verify compliance, not to guarantee you a statement in hand.
State laws fill the gap. About 41 states require employers to provide employees with some form of written wage statement each pay period. Roughly 11 of those specifically require a printed or paper stub; the rest allow electronic delivery. A handful of states let employees opt out of electronic statements, and one requires employers to get employee consent before going paperless. Nine states, including Alabama, Florida, Georgia, Mississippi, Ohio, and Tennessee, have no pay stub requirement at all, though employers there can still choose to provide one.
Penalties for failing to provide a required stub vary widely. Fines typically range from $50 to several thousand dollars per violation, and in some states employees can recover damages through a private lawsuit. Because the rules differ so much, check your state’s labor department website for what applies to your employer.
Independent Contractors Generally Don’t Get Pay Stubs
If you work as an independent contractor rather than an employee, you generally will not receive a pay stub. Businesses have no obligation to withhold taxes or issue per-period wage statements for contractors. Instead, any business that pays you $600 or more during the year must file Form 1099-NEC reporting the total, and you receive a copy of that form by January 31 of the following year.7Internal Revenue Service. Reporting Payments to Independent Contractors
A 1099-NEC shows only gross payments, not the tax breakdown a pay stub provides. As a contractor, you’re responsible for tracking your own income and expenses and paying estimated taxes quarterly. When you need proof of income for a loan or rental application, bank statements, invoices, and your most recent tax return typically stand in for an employee’s pay stubs.
When You’ll Need Pay Stubs
Even in states that don’t require your employer to issue them, you’ll likely need pay stubs for major financial transactions. Mortgage lenders follow guidelines that call for stubs from the most recent two months as proof of income.8Fannie Mae. Documents You Need to Apply for a Mortgage Auto lenders and personal loan providers ask for similar documentation to calculate your debt-to-income ratio before approving a loan.
Landlords routinely request recent stubs during the rental application process to confirm you earn enough to cover the monthly rent. Government assistance programs also require income verification. The Supplemental Nutrition Assistance Program (SNAP), for example, requires applicants to provide proof of income to show they meet both gross and net income limits.9Food and Nutrition Service, U.S. Department of Agriculture. SNAP Eligibility The U.S. Treasury likewise accepts pay stubs as supporting documentation for income verification in housing assistance programs.10U.S. Department of the Treasury. Income Verification
How to Get and Store Your Pay Stubs
Most employers now distribute pay information through a secure online payroll portal where you can view, download, and print current and past statements at any time. If your company uses a third-party payroll service, you may have a separate login for that provider’s website or app. Ask your human resources department if you haven’t been given access.
Some employers send stubs as encrypted email attachments or provide them through a company intranet. If none of those options are available, you can request a physical copy from payroll or HR. Save your own digital copies rather than relying solely on the employer portal, since you may lose access after leaving the company.
As supporting records for your tax return, pay stubs should be kept for at least three years from the date you file, which matches the IRS’s general recommendation for records that back up reported income.11Internal Revenue Service. Topic No. 305, Recordkeeping A practical approach: hold each year’s stubs at least until you receive your W-2 and confirm the totals match, then keep them another three to four years in case of an audit or a wage dispute.
What to Do If a Pay Stub Is Wrong
If your stub shows incorrect hours, the wrong pay rate, missing overtime, or inaccurate deductions, raise the issue with payroll or HR in writing. Document the specific error, including the dates and hours that don’t match your own records. Most mistakes are clerical and get corrected within a pay cycle or two once flagged.
If your employer doesn’t fix the problem or you believe you’re being systematically underpaid, you can file a complaint with the Wage and Hour Division of the U.S. Department of Labor, which investigates potential violations of the Fair Labor Standards Act. You can also file a private lawsuit to recover unpaid wages plus an equal amount in liquidated damages, along with attorney’s fees.12U.S. Department of Labor. Handy Reference Guide to the Fair Labor Standards Act
Federal law protects you from retaliation for raising a pay concern. Under the FLSA, your employer cannot fire you, demote you, or take any other adverse action against you for asking about your pay, filing a wage complaint, or cooperating with an investigation.13U.S. Department of Labor. Retaliation If your employer retaliates, you or the Secretary of Labor can sue for reinstatement, lost wages, and damages.