The Complete Guide to Paystubs

Whether you’re an employee trying to make sense of your paycheck or an employer responsible for running payroll, understanding paystubs is essential. These simple-looking documents do much more than summarize wages—they prove income, record tax withholdings, and often serve as legal documents for loans, rentals, or government programs.

In this guide, we’ll cover everything you need to know: what paystubs are, what they should look like, the key elements that make them valid, and how to create them correctly.

What is a Paystub?

At its core, a paystub (sometimes called a check stub) is a breakdown of an employee’s earnings and deductions for a specific pay period. Employers usually issue a paystub with each paycheck or direct deposit, showing both the employee’s earnings and the amounts withheld.

A paystub typically includes two types of information:

• Pay Period Details: how much the employee earned this cycle and how much they’ve earned year-to-date (YTD).
• Deductions and Withholdings: federal and state taxes, Social Security, Medicare, health insurance premiums, retirement contributions, and more.

Ultimately, the paystub answers the question employees care about most: how much do I actually take home? To find that number—net pay—you subtract deductions from gross pay.

What Should a Paystub Look Like?

Paystubs don’t follow a single universal design. A paystub from one company may look completely different from another, but the structure tends to follow the same logic.

Some employers still issue paper paystubs, which can be handy when employees need proof of income for things like apartment applications. Others have shifted to electronic paystubs, which are easier to store, eco-friendly, and usually less expensive to produce.

Regardless of format, a good paystub template should be clear, organized, and easy to read. While the layout may vary, the priority is making sure all the necessary details are present and that employees can quickly verify their pay.

Essential Elements Every Paystub Must Include

Think of a paystub as a puzzle: if any piece is missing, the entire document can be questioned. Financial institutions, landlords, and even government agencies often require paystubs to verify income, so completeness is critical. Here are the must-have components of a valid paystub:

1) Employee Identification – Full name and either the last four digits of a Social Security Number or an employee ID number.

2) Employer Information – Legal business name and address (an EIN or phone number can add credibility).

3) Pay Period & Pay Date – Both the range of work covered and the actual payment date must be shown.

4) Gross Earnings – Salary, hourly wages, overtime, bonuses, or commissions should all be listed.

5) Deductions – Federal and state income tax, Social Security, Medicare, health insurance, retirement plans, and garnishments.

6) Net Pay – The actual take-home pay employees receive.

7) Year-to-Date Totals – Running totals of gross pay, deductions, and net pay since the start of the year.

8) Hours & Rates (if hourly) – Number of hours worked and the corresponding rate, including overtime.

📌 Quick Check: If your paystub doesn’t clearly show who earned it, who paid it, how much was earned, how much was withheld, and the final take-home pay, it may not be considered valid.

Why Valid Paystubs Matter

It’s tempting to think of a paystub as just another piece of payroll paperwork, but in reality, it often plays a big role in financial decision-making.

For employees, paystubs are proof of income. Without them, loan or rental applications may be delayed or denied. Incomplete or sloppy paystubs can even raise red flags, making lenders suspect falsification.

For employers, accuracy builds trust. A workforce that can’t reconcile its pay quickly loses confidence in payroll. Mistakes not only cause frustration but may also lead to penalties during tax season.

For institutions, paystubs provide verification. Banks, landlords, and government agencies rely on the details within a paystub to confirm both stability and legitimacy of income.

State-by-State Paystub Rules

There is no single federal rule requiring employers to issue paystubs, which means state law governs whether and how they must be provided. Some states don’t require paystubs at all, while others mandate access—either electronically or in printed form.

Use this key to help read the following table:

• No Requirement – Some states, such as Alabama, Florida, and Mississippi, don’t require employers to provide paystubs.
• Access Only – Many states allow employers to provide electronic paystubs as long as employees can view them.
• Access or Printable – States like California, Colorado, and Texas require electronic stubs to also be printable.
• Opt-Out States – A few states (such as Minnesota and Oregon) allow employees to opt out of electronic delivery and request paper paystubs.
• Opt-In States – Hawaii is unique, requiring employees to consent before receiving electronic paystubs.

State Specific Paystub Rules

How to Create Accurate Paystubs

For employers, creating a paystub isn’t just about formatting—it’s about accuracy. Here’s the general process:

1. Determine your payroll cycle (weekly, biweekly, semimonthly, or monthly).
2. Track employee hours (if hourly) or salary amounts.
3. Calculate gross wages by multiplying hours worked by hourly rate or using salary data.
4. Apply deductions based on W4 forms and benefits selections.
5. Subtract deductions from gross pay to determine net pay.
6. Include year-to-date totals for gross, deductions, and net pay.

While some employers try to manage this in Excel, spreadsheets can easily lead to errors. Fake or inaccurate paystubs also create legal risks. The safest approach is to use a reliable paystub generator that ensures compliance and accuracy every time.

Final Checklist: Is Your Paystub Valid?

Here’s a quick reference checklist:

If your paystub hits all these points, it’s valid.

Use a Paystub Maker You Can Trust

A paystub does more than summarize wages—it serves as a legally recognized financial document that influences everything from loan approvals to housing applications. Whether you’re an employer responsible for issuing paystubs or an employee who needs them for income verification, ensuring that each one contains all the essential elements is absolutely critical.

If you’re unsure how to get started or want to avoid costly mistakes, choose a reliable paystub maker to simplify the process. Tools like FormPros allow you to create accurate, professional, and legally compliant paystubs in just minutes—no guesswork required.

Need help generating or reviewing your paystubs? Reach out anytime—we’re here to make sure your documents are correct, complete, and ready when you need them.

Generate a Paystub

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The Complete Guide to Paystubs FAQs

• Will all lenders accept a paystub as valid proof of income?
  Most lenders accept paystubs as valid proof of income—provided the paystub lists complete, legible, and verifiable details. Include your full name, employer information, pay period, gross and net income, and year-to-date totals. Lenders often request additional documents such as bank statements or W-2s to confirm your financial stability or rule out fraud.
• Can I create my own paystub if I’m self-employed?
  Yes, if you're self-employed, you can generate your own paystubs using a reliable paystub generator (like FormPros). Landlords, lenders, and government agencies often require these documents to verify your income during applications. Be sure your paystub accurately reflects your income and includes all key details—such as your business name, tax deductions, and net pay—to ensure it appears credible and professional.
• Are fake paystubs illegal?
  Yes, creating or using a fake paystub breaks the law and constitutes fraud. If you submit false income information to landlords, lenders, or government agencies, you risk penalties, denied applications, and even criminal charges. Always provide accurate and truthful information on every financial document.
• Can paystubs be used to verify employment status?
  While paystubs help verify that someone currently earns income, they do not replace official employment verification. Employers still complete formal verification letters or employment confirmation forms, especially for immigration, visa, or loan applications.
• What’s the difference between a paystub and a direct deposit slip?
  A paystub shows your earnings, deductions, and net pay, while a direct deposit slip simply confirms that your employer transferred money to your bank account. Because a deposit slip doesn’t include itemized earnings or tax withholdings, it can’t serve as a substitute for a paystub in official situations.
• Do gig workers or freelancers receive paystubs?
  Not usually. Gig workers, freelancers, and independent contractors usually get paid through invoices or payment platforms and don’t receive traditional paystubs. However, they can create their own paystubs to keep records or show proof of income for applications. FormPros makes that process easy.
• Are employers required to keep copies of paystubs?
  Yes, the law requires most employers to keep payroll records, including pay information, for a specific period—typically 3 to 4 years, depending on the state. Even if they don’t provide physical copies to employees, they still need to maintain these records for tax and legal compliance.
• Can paystubs include non-cash compensation like stock or perks?
  Some paystubs show taxable non-cash compensation, such as stock bonuses, employer-paid health premiums, or fringe benefits. Employers either include these in gross earnings or list them separately, depending on how they manage payroll.