What Is a Pay Stub? A Complete Guide

The Simple Definition

A pay stub(also called a paycheck stub, pay slip, or earnings statement) is a document that shows an employee's earnings and deductions for a specific pay period — and running totals for the year (called year-to-date, or YTD).

If you're a W2 employee, your employer generates a pay stub automatically with every paycheck. If you're a freelancer, gig worker, or self-employed, you have to create one yourself.

What Information Is on a Pay Stub?

A standard pay stub contains these sections:

Employee and Employer Information

• Employee full name and address
• Employer (company) name and address
• Employee ID or Social Security Number (last 4 digits)
• Pay period start and end dates
• Pay date (when the check is issued)

Earnings

• Gross Pay: Your total earnings before any deductions. For hourly workers, this is hours × hourly rate. For salaried workers, it's your annual salary ÷ pay periods per year.
• Regular Pay: Standard hours at your base rate
• Overtime Pay: Hours over 40/week at 1.5× rate (if applicable)
• YTD Gross: Your total earnings so far this calendar year

Taxes Withheld

• Federal Income Tax: Based on your W-4 filing status (single, married) and 2024 IRS tax brackets
• State Income Tax: Varies by state; some states (Texas, Florida, Nevada) have no income tax
• Social Security: 6.2% of gross pay, up to the annual wage base ($168,600 in 2024)
• Medicare: 1.45% of gross pay (plus 0.9% above $200,000 annual income)

Other Deductions

• Health insurance premiums (if employer-sponsored)
• 401(k) or 403(b) retirement contributions
• Dental and vision insurance
• Health Savings Account (HSA) contributions
• Garnishments (if applicable)

Net Pay

Net Pay(also called take-home pay) is what's left after all deductions. This is the amount that hits your bank account. The formula is:

Why Do You Need a Pay Stub?

Pay stubs are required for many common situations:

Apartment Applications

Most landlords require 2–3 recent pay stubs to verify that your income is at least 2.5–3× the monthly rent. They want to see gross pay, employer information, and payment regularity.

Mortgage and Loan Applications

Banks and mortgage lenders require pay stubs as part of the income verification process. They typically ask for your two most recent stubs, plus W2 forms from the previous two years.

Government Benefits

Many government assistance programs (SNAP, Medicaid, housing assistance) require income verification via pay stubs.

Verifying Tax Withholding

Your pay stub lets you verify that your employer is withholding the correct amount of federal and state taxes. Errors are common — checking your stub each period can prevent an unexpected tax bill.

Personal Financial Planning

Pay stubs are a useful budgeting tool — they show exactly how much you're taking home and where each dollar goes.

What If I Don't Have a Pay Stub?

Millions of Americans don't receive traditional pay stubs: freelancers, 1099 contractors, gig workers (Uber, DoorDash, Instacart), self-employed business owners, and cash-paid workers.

If you're in this group, you have several options:

1. Generate your own pay stub using a tool like StubFast — enter your income, and get a professional document in 60 seconds
2. Use bank statements showing consistent deposits (landlords often accept 3 months of statements)
3. Use your tax return (Schedule C for self-employed) as annual income proof
4. Get an income verification letter from an accountant or CPA
5. Use 1099 forms from clients as income evidence

Pay Stub vs. W2 vs. 1099 — What's the Difference?

How to Generate a Pay Stub

Using StubFast, you can create a professional pay stub in 60 seconds:

1. Select your stub type (W2 employee, 1099 contractor, self-employed, or gig worker)
2. Enter your employer and employee information
3. Enter your gross pay, pay frequency, and state
4. Preview the stub live — all taxes calculated automatically
5. Download a free watermarked preview, or purchase a clean PDF for $6.99