What Is a Pay Stub?
A pay stub is a document issued by employers to show employees their gross earnings and deductions, as well as their net pay. This document may be created in electronic form, which can be emailed to employees or made available online to confirm direct deposits of their paychecks, or as a separate part of a paper paycheck.
What do Pay Stubs Show?
Pay stubs are intended to show the amount deducted from earnings and the remainder of the take-home pay after deductions, with separate columns showing current pay period figures compared to the year to date. These documents contain important information with additional details shown for salaried non-exempt employees and hourly workers. In some cases, remaining sick leave and vacation leave hours may be shown as well.
Are There Pay Stub Requirements?
While many states require employers to provide pay stubs, there is no federal law requiring them. Nevertheless, the Fair Labor Standards Act requires employers to maintain records of employees’ work hours and earnings. As businesses grow, it is becoming increasingly complicated and time-consuming to handle payroll responsibilities manually, but payroll software can make issuing paychecks and pay stubs quicker and easier once the employee data is entered.