A pay stub shows the employer and employee, the pay period and pay date, hours and rate, earnings by type, gross pay, each tax and deduction, net pay, and year-to-date totals. Here are those eleven items in the order they usually appear.
In brief. Federal law does not require a pay stub; each state sets what one must show, and California’s list has nine items. Lenders read the pay date and year-to-date totals most closely, because together they show current income.
1. Employer name and address
The legal name of the business paying the wages and its address. Some employers also print their employer identification number (EIN).
2. Employee name and identifier
The employee's name, and usually an employee ID. Some stubs show the last four digits of the Social Security number, which is all California allows (Labor Code 226(a), covered below). A full SSN should not appear on a stub.
3. Pay period
The start and end dates of the work being paid for. A biweekly period covers fourteen days; a semimonthly one usually runs from the first to the fifteenth or from the sixteenth to month end. See how many pay periods are in a year.
4. Pay date
The date the check was issued or the deposit made. Year-to-date totals and tax years follow the pay date, not the period, because wages count when they are paid, not when they are earned (26 CFR 31.3121(a)-2).
5. Hours worked and rate of pay
For hourly employees, regular hours and the hourly rate, plus overtime hours and the overtime rate if any. For salaried employees, the salary for the period. Many state laws require hours and rates on hourly employees' statements, for example New York Labor Law 195(3).
6. Earnings by type
Regular pay, overtime, bonus, commission, tips, holiday pay, sick pay and any other earnings, each on its own line, for this period and for the year so far.
7. Gross pay
The total of all earnings before anything is deducted. It is not the base every tax uses: pre-tax deductions come off first, so a stub can show several taxable wage figures.
8. Taxes withheld
Federal income tax (FIT), Social Security, Medicare, and state and local income tax where they apply. Each line shows the current amount and the year-to-date amount. See what FIT means.
9. Other deductions
Pre-tax items such as retirement plan contributions, health insurance premiums and HSA contributions, then after-tax items such as Roth contributions, union dues or garnishments. The stub should say which are pre-tax.
10. Net pay
Gross pay minus all taxes and deductions: the amount actually paid. Usually printed in bold or in a highlighted row. See gross pay vs net pay.
11. Year-to-date totals
Every line above should have a YTD column, and the stub should show YTD gross, YTD deductions and YTD net. This is what lenders use to check annual income. Read what YTD means.
How to read a pay stub
Read the items above in order, from the dates down to net pay, and check that each total follows from the lines before it. How to read a pay stub, line by line does those checks on a full example stub, including the rounding and year-to-date figures that most often look wrong.
What do the abbreviations on a pay stub mean?
Payroll systems print short labels. These are the common ones; the exact wording varies by provider.
| Label | Means |
|---|---|
| FIT, FWT, Fed W/H | Federal income tax withheld |
| SS, OASDI | Social Security tax. OASDI is the program’s formal name, Old-Age, Survivors, and Disability Insurance |
| MED, MEDI | Medicare tax |
| FICA | Social Security and Medicare together, on stubs that combine them |
| SIT, SWT | State income tax withheld |
| SDI | State disability insurance, in states with a program. In California it is a deduction from employees’ wages |
| YTD | Year to date: the total of all pay dates so far this calendar year |
What does "recent pay stubs" mean?
When a lender, landlord or agency asks for recent pay stubs, they mean the newest consecutive ones. Mortgage lenders following Fannie Mae Selling Guide B3-3.2-01 need the latest stub dated no earlier than 30 days before the application, with all year-to-date earnings.
Landlords and agencies often ask for the last two or more; HUD-assisted housing asks for the most recent four to six in a row (HUD Handbook 4350.3, Appendix 3).
Whoever asks, they check that the pay date is current, that the employer matches your application, and that YTD gross supports the income you stated. If you are self-employed or were asked for bank statements, see bank statement vs pay stub as proof of income.
Which of these does the law require?
No federal law requires a pay stub. The Department of Labor’s FLSA guidance says the federal wage law does not require employers to give employees pay stubs. It only requires accurate records of hours and pay (DOL Fact Sheet 21).
Each state sets its own wage statement rules. California’s list in Labor Code 226(a) is a useful benchmark; the table shows which of the eleven items it covers.
| Item on the stub | In California 226(a)? |
|---|---|
| 1. Employer name and address | Yes: the employer’s legal name and address, item (8) |
| 2. Employee name and identifier | Yes: name plus only the last four SSN digits or an employee ID, item (7) |
| 3. Pay period | Yes: inclusive dates of the period, item (6) |
| 4. Pay date | Not listed |
| 5. Hours and rate | Yes: total hours, item (2), and each hourly rate with its hours, item (9) |
| 6. Earnings by type | Partly: hours at each rate, item (9), and piece-rate units, item (3) |
| 7. Gross pay | Yes: gross wages earned, item (1) |
| 8. Taxes withheld | Yes, as deductions, item (4) |
| 9. Other deductions | Yes: all deductions, item (4); ones made on the employee’s written orders may share one line |
| 10. Net pay | Yes: net wages earned, item (5) |
| 11. Year-to-date totals | Not listed |
The pay date and year-to-date totals are not on California’s list, but mortgage lenders rely on both. Some states do require the pay date, including Oregon (ORS 652.610) and Washington (WAC 296-126-040).
What if a pay stub is missing information?
A stub that shows only gross and net pay, or omits the pay period, is a weak record. Employers who run payroll by hand can use our pay stub templates, which include every line above, or the pay stub generator, which calculates the taxes and fills in the year-to-date column.
Paid by direct deposit and never given a stub? Our guide to pay stubs with direct deposit covers where they are kept and how to request old ones.
