What Should a Pay Stub Look Like?

Summary

A pay stub should clearly show employee and employer details, gross earnings, taxes, deductions, benefits, net pay, and year‑to‑date totals. This is what a complete pay stub look like when it is easy to read, accurately itemized, and compliant with state requirements to ensure transparency and proper payroll documentation.

What Is a Pay Stub?

A pay stub is an official record provided with each paycheck that details an employee’s earnings for a specific pay period. It includes gross income before deductions, itemized taxes and withholdings, benefits, and the final net pay. Pay stubs serve as proof of income, help verify payroll accuracy, and support personal financial recordkeeping.

Essential Information on a Pay Stub

A well‑structured pay stub presents all the details an employee needs to understand how their earnings are calculated and what deductions have been applied. The following elements are typically included:

General Payroll Details

Shows the pay period start and end dates, pay date, and pay frequency. These details provide context for the earnings and deductions listed.

Employee and Employer Information

Lists the employee’s full name, address, and employee ID, along with the employer’s name and contact details. This ensures the document is clearly linked to the right person and company.

Gross Earnings

Indicates total earnings before any deductions. May include regular wages, overtime, bonuses, and commissions. This figure is the starting point for all payroll calculations.

Taxes and Withholdings

Itemizes all required tax deductions, such as federal, state, and local income tax, as well as Social Security and Medicare contributions. Accuracy here is critical for compliance.

Benefits and Voluntary Deductions

Details deductions for benefits like health insurance, retirement plans, union dues, or charitable contributions. These reduce take‑home pay but provide added value to employees.

Employer Contributions

Lists amounts the employer contributes toward benefits such as retirement funds, health insurance premiums, or other incentives. While not deducted from pay, these add to the overall compensation package.

Net Pay

Shows the final amount the employee receives after all taxes and deductions. This is the figure deposited into the employee’s account or issued as a paycheck.

Year‑to‑Date Totals

Provides cumulative figures for earnings, taxes, and deductions since the start of the year. Useful for tracking income, planning taxes, and verifying payroll accuracy.

Tax Deductions and Contributions

A pay stub provides a clear breakdown of the deductions and contributions that affect an employee’s final take‑home pay. Understanding these items helps both employees and employers ensure accuracy and compliance.

Employee Tax Deductions

These are mandatory amounts withheld from an employee’s gross earnings. On a properly detailed pay stub, these deductions help define what a complete pay stub look like for compliance and clarity. They typically include federal income tax, state and local income taxes (where applicable), and payroll taxes such as Social Security and Medicare. The amounts are based on earnings, tax rates, and the information provided on the employee’s tax forms.

Benefits and Voluntary Deductions

These deductions are optional and agreed upon by the employee. Examples include health, dental, or vision insurance premiums, retirement plan contributions, union dues, and charitable donations. While they reduce net pay, they often provide valuable personal or financial benefits.

Employer Contributions

Separate from deductions, employer contributions represent amounts the employer pays on the employee’s behalf. Common examples include matching retirement plan contributions, employer‑paid health insurance premiums, and contributions to other employee benefits. These do not reduce the employee’s paycheck but increase the total compensation value.

Common Payroll Allowances

In some cases, pay stubs may include allowances such as travel stipends, meal allowances, or housing support. These can be taxable or non‑taxable depending on regulations and the nature of the allowance.

Why Understanding Deductions Matters

Knowing exactly what is deducted and why helps employees verify paycheck accuracy, plan personal budgets, and prepare for taxes. For employers, transparent deductions strengthen trust and reduce payroll disputes.

Frequently Asked Questions

A pay stub should list employee and employer details, pay period dates, gross earnings, deductions, benefits, taxes, employer contributions, net pay, and year‑to‑date totals.

Gross pay should appear before any deductions, while net pay should be shown as the final amount after taxes, benefits, and other withholdings have been subtracted.

Common deductions include federal, state, and local income taxes, Social Security, Medicare, health insurance premiums, retirement contributions, and other voluntary deductions.

There is no single nationwide format, but most states require certain details to be included. Employers must comply with state‑specific formatting and content rules.

Yes. Hourly employee pay stubs often show total hours worked and overtime, while salaried employee pay stubs typically show a fixed pay amount for each period.

Yes, in most states, digital pay stubs are valid if they contain required information and employees can easily access and print them when needed.

Check that your hours, pay rate, and deductions match your employment agreement and tax forms. If anything seems off, contact payroll or HR immediately.

Many states require employers to issue pay stubs, either in paper or electronic form. Rules vary, so compliance depends on state regulations.

You should receive a pay stub each time you are paid, whether that is weekly, bi‑weekly, semi‑monthly, or monthly, depending on your employer’s pay schedule.

Report it to your payroll or HR department right away. Missing details could indicate an error, and correcting it quickly ensures accurate records and compliance.