Pay Stub Template: What to Include on Employee Pay Stubs
Quick Answer
A pay stub, or earnings statement, shows an employee how their pay was calculated for a pay period: pay period dates, pay date, hours worked, pay rates, overtime, gross pay, each tax and deduction, net pay and year-to-date totals. Many states set rules for what a pay stub must include and how it's provided. Federal law requires employers to keep payroll records such as hours worked, pay rates, deductions and total wages paid. Use a payroll provider or a consistent template so every stub is accurate and complete.
"Why is my check smaller this week?" A clear pay stub answers most payroll questions before they're asked. It shows employees exactly how their pay was calculated, and it gives your business a consistent record for every pay period.
This guide includes a free pay stub template, explains each section, covers federal recordkeeping and state pay stub rules to check and shows how to handle common employee questions.
Note: This is general information, not legal or tax advice. Pay stub requirements vary by state. Check your state labor department and work with your payroll provider or accountant.
What Is a Pay Stub?
A pay stub, also called an earnings statement or wage statement, is a document given with each paycheck or direct deposit that breaks down the employee's pay. It can be paper or electronic, depending on your state's rules and your payroll system.
Free Pay Stub Template
[Company Name] Earnings Statement
[Company address] | [Employer ID, if required by your state]
Employee: __________ | Employee ID: ______ | [Last 4 of SSN, if used]
Pay period: ______ to ______ | Pay date: ______
Earnings
| Type | Rate | Hours | Current | Year to date |
|---|---|---|---|---|
| Regular | $20.00 | 40.00 | $800.00 | |
| Overtime | $30.00 | 4.00 | $120.00 | |
| Holiday / PTO | ||||
| Tips / commissions / bonus | ||||
| Gross pay | $920.00 |
Taxes Withheld
| Tax | Current | Year to date |
|---|---|---|
| Federal income tax | ||
| Social Security | ||
| Medicare | ||
| State income tax (if any) | ||
| Local tax (if any) |
Other Deductions
| Deduction | Current | Year to date |
|---|---|---|
| Health insurance | ||
| Retirement contribution | ||
| Other (authorized) |
Summary
| Current | Year to date | |
|---|---|---|
| Gross pay | ||
| Total taxes | ||
| Total deductions | ||
| Net pay |
| PTO / sick balance | Earned | Used | Available |
|---|---|---|---|
Amounts shown are examples. Your payroll provider calculates taxes based on each employee's W-4 and state forms.
What to Include on a Pay Stub
| Section | What it shows |
|---|---|
| Employer information | Business name and address |
| Employee information | Name and employee ID |
| Pay period and pay date | The dates worked and the date paid |
| Hours and rates | Regular, overtime and other hours with each rate |
| Gross pay | Total earnings before deductions |
| Taxes withheld | Each federal, state and local tax |
| Other deductions | Benefits, retirement and other authorized deductions |
| Net pay | The amount actually paid |
| Year-to-date totals | Running totals for the year |
| Leave balances | PTO or sick leave, if your state or policy requires it |
Federal Payroll Recordkeeping
The Department of Labor's Fact Sheet #21 lists records employers covered by the FLSA must keep for each nonexempt employee, including hours worked each day, total hours worked each workweek, the regular hourly pay rate, total overtime earnings for the workweek, all additions to or deductions from wages, total wages paid each pay period and the date of payment and the pay period covered. Fact Sheet #21 says payroll records must be preserved for at least three years, and records on which wage computations are based, such as time cards, should be kept for two years.
A complete pay stub includes much of the same information, which makes it a useful record for both you and the employee.
State Pay Stub Rules
Many states have their own pay stub, or wage statement, requirements. Depending on the state, rules may cover:
- Whether employers must provide a pay stub at all.
- Which items must appear, such as hours, rates, deductions and leave balances.
- Whether stubs can be electronic and whether employees can request paper.
- Whether the employer's address or ID number must appear.
- How long pay stub records must be kept.
Check your state labor department's rules, and confirm your payroll provider's stubs meet them. See payroll report requirements.
Paper vs. Electronic Pay Stubs
| Paper | Electronic | |
|---|---|---|
| Delivery | With paycheck | Employee portal or email |
| Cost | Printing and handling | Usually included in payroll software |
| Access | Employee keeps the copy | Available anytime |
| Rules | Generally allowed | Some states require consent or access to print |
If you use electronic stubs, make sure every employee can access them, including employees without a work computer.
Reading a Pay Stub: Common Questions
| Employee asks | Common reason |
|---|---|
| "Why is my check smaller?" | Fewer hours, a new deduction, a benefits change or a W-4 change |
| "Why is overtime this rate?" | Overtime is calculated at 1.5 times the regular rate for nonexempt employees over 40 hours in a workweek under federal law; some states differ |
| "What is this deduction?" | Benefits, retirement or another authorized deduction |
| "Why did my taxes change?" | Higher pay, a new W-4 or a change in withholding tables |
| "Where are my tips?" | Reported tips and how they're paid depend on your tip process |
Train managers to send pay questions to the person who handles payroll, so answers are accurate and consistent.
Pay Stubs for Different Pay Types
| Pay type | What to show |
|---|---|
| Hourly | Hours by type and rate |
| Salaried exempt | Salary for the period; hours if tracked |
| Salaried nonexempt | Salary, hours and overtime |
| Tipped | Cash wage, tips reported and any tip credit as required |
| Commission | Base pay and commissions earned |
| Piece rate | Units and rates, plus hours |
Checking Pay Stubs Before Payday
- Approve timesheets before running payroll.
- Check hours, overtime and pay rates.
- Confirm any new deductions are authorized.
- Review a sample of stubs for accuracy.
- Fix errors before pay date when possible.
Clean time data makes for accurate stubs. See how to audit timesheets and timecard approval.
Fixing a Pay Stub Error
- Confirm the error with time and payroll records.
- Correct underpayments quickly, often on the next payroll or with a separate check, following your state's rules.
- Issue a corrected stub or a clear explanation.
- Talk to your payroll provider about tax corrections.
- Fix the cause so it doesn't happen again.
For overpayments, check the rules before recovering money. See can an employer make you pay back an overpayment.
Paying Employees in Cash
Even when employees are paid in cash, payroll taxes, recordkeeping and many state pay stub rules still apply. Run cash wages through payroll and give employees a pay stub. See can I pay my employees cash.
Example: A Small Café
A café owner wrote paychecks by hand and gave employees a sticky note with hours. Employees often asked how their pay was figured, and one complained to the state about missing information. The owner moved payroll to a provider that issues full electronic pay stubs with hours, rates, deductions and year-to-date totals. Pay questions dropped, and the owner had a complete record of every pay period.
Common Pay Stub Mistakes
- Missing hours or rates.
- No breakdown of deductions.
- Missing year-to-date totals.
- Unauthorized deductions.
- Not meeting state requirements.
- Handwritten stubs that are hard to read or keep.
Pay Stub Checklist
| Step | Done? |
|---|---|
| Check your state's pay stub rules | |
| Include hours, rates, gross pay, taxes, deductions and net pay | |
| Show year-to-date totals | |
| Show leave balances if required | |
| Approve time before payroll | |
| Keep payroll records as required | |
| Answer pay questions consistently |
Sample Pay Stub Calculation
| Line | Amount |
|---|---|
| Regular: 40 hours × $20.00 | $800.00 |
| Overtime: 4 hours × $30.00 | $120.00 |
| Gross pay | $920.00 |
| Federal income tax (example) | −$62.00 |
| Social Security (example) | −$57.04 |
| Medicare (example) | −$13.34 |
| State income tax (example) | −$28.00 |
| Health insurance (employee share) | −$45.00 |
| Net pay | $714.62 |
This example is for illustration only. Federal and state income tax withholding depend on each employee's forms and current withholding tables, which your payroll provider applies. Confirm current Social Security and Medicare rates and wage limits with your payroll provider.
Gross Pay vs. Net Pay
| Term | Meaning |
|---|---|
| Gross pay | Total earnings before taxes and deductions |
| Pre-tax deductions | Deductions taken before certain taxes, such as some retirement and health contributions |
| Taxes | Federal, state and local taxes withheld |
| Post-tax deductions | Deductions taken after taxes |
| Net pay | What the employee actually receives |
Employees often confuse gross and net pay, especially when comparing their hourly rate to their deposit. A clear stub helps explain the difference.
Year-to-Date Totals
Year-to-date (YTD) columns show running totals of earnings, taxes and deductions since January 1. They help employees check their pay over time and help with loan or rental applications that ask for proof of income. YTD totals should match the employee's Form W-2 at year-end, so errors caught early are much easier to fix.
Leave Balances on Pay Stubs
Some states require paid sick leave balances to appear on pay stubs or be available to employees in writing. Even where it isn't required, showing PTO and sick balances reduces questions and helps employees plan time off. See PTO tracking.
Pay Stub Retention for Employees
Encourage employees to keep their pay stubs, or make sure they can access past stubs online. Stubs help employees check their pay, prepare taxes and prove income. Departing employees should know how to access their stubs after they leave.
Questions to Ask Your Payroll Provider
- Do your pay stubs meet our state's requirements?
- Can employees access stubs online after they leave?
- Do stubs show leave balances?
- How are corrections shown on stubs?
- Can employees request paper stubs?
Pay Stub Quick Tips
- Show hours and rates, not just totals.
- Break out every tax and deduction.
- Include year-to-date totals.
- Check state requirements.
- Approve time before running payroll.
Pay Stub Glossary
| Term | Meaning |
|---|---|
| Pay period | The dates worked that this paycheck covers |
| Pay date | The date wages are paid |
| Regular rate | The hourly rate used for straight-time hours |
| Overtime | Hours over 40 in a workweek for nonexempt employees under federal law, paid at a higher rate |
| Withholding | Taxes taken out of pay and sent to tax agencies |
| Deduction | Any amount subtracted from gross pay |
| YTD | Year to date |
| Net pay | Take-home pay |
Sharing a short glossary with new hires answers many first-paycheck questions.
First Paycheck Conversations
New employees often don't know what to expect from their first paycheck, especially if your pay periods run behind the pay date. Explain the pay schedule during onboarding, show a sample pay stub and tell them who to contact with questions. See the 2027 payroll calendar.
Final Pay Stubs
When an employee leaves, their final pay stub should show all final wages, any payout of unused leave required by law or policy and any authorized deductions. Final pay deadlines vary by state. See final paycheck laws by state.
Getting Started
- Review a current pay stub against this template.
- Check your state's pay stub requirements.
- Ask your payroll provider to add anything missing.
- Share a sample stub and glossary with employees.
- Set a routine for approving time before payroll.
Clear, complete pay stubs save time every payday, for you and your team.
Pay Stubs and Proof of Income
Employees often need pay stubs to rent an apartment, apply for a loan or qualify for assistance programs. Make it easy for them to get copies, ideally through an online portal. If an employee asks for an employment and income verification letter instead, follow your reference policy. See the reference letter templates, which include a verification letter.
Protecting Pay Stub Information
- Show only the last four digits of Social Security numbers, if any.
- Deliver paper stubs in sealed envelopes.
- Use secure logins for electronic stubs.
- Limit who can view other employees' pay information.
Common Questions About Pay Stubs
- Do salaried employees need pay stubs? State rules generally apply to all employees, though content may differ.
- Can I change pay stub formats? Yes, as long as required information is included.
- What if an employee loses a stub? Provide a copy from your payroll records.
Pay Stubs for Tipped Employees
Tipped employees' stubs often show the cash wage, reported tips, any tip credit and tips paid through payroll. Federal and state rules for tipped employees are detailed, and some states require tip information on wage statements. Work with your payroll provider so tips are shown and taxed correctly. See the tip out sheet.
Pay Stubs for Employees in Multiple States
If employees work in more than one state, or you have locations in several states, each state's pay stub rules may apply. Confirm with your payroll provider that stubs meet the requirements for each work location, and review them when you expand into a new state.
Pay Stub Quick Reference for Managers
Give managers a one-page guide explaining each section of your company's pay stub and who to contact for questions. When managers can explain the basics, employees get answers faster and payroll gets fewer interruptions.
Accurate stubs start with accurate time. When hours are approved and correct before payroll runs, pay stubs need fewer corrections and employees trust their pay.
Pay Stubs and Year-End Forms
At year-end, employees receive Form W-2 showing total wages and withholding for the year. When pay stubs show accurate year-to-date totals all year, W-2s rarely surprise anyone. Review a sample of final December stubs before W-2s are prepared and fix any errors with your payroll provider.
Fixing errors before W-2s go out is far easier than issuing corrected forms after.
A little review now saves a lot of work later.
Accurate Payroll Data With Updoot
Updoot's employee time clock records accurate hours, and the payroll report gives your payroll provider clean totals for every pay period, so stubs start with correct numbers.