Pay stub template

What a pay stub is

A pay stub, also called a paycheck stub or pay slip, is the document that explains how a paycheck was calculated. It lists what the worker earned for the pay period, subtracts taxes and other deductions, and shows the take home, or net, amount. Whether pay is delivered by direct deposit or check, the stub is the record that shows the math behind it.

Pay stubs matter for both sides. Workers use them to prove income when renting a home or applying for a loan, and to check that their pay and deductions are correct. Employers keep them as part of payroll records that may be required for tax and labor purposes. A clear, accurate stub reduces payroll questions and disputes.

This is general information, not legal or tax advice. Rules vary by state and province, and the right choice depends on your facts. For anything important, check with a qualified professional.

What goes on a pay stub

A complete pay stub usually has four groups of information: who is involved, what was earned, what was taken out, and what remains.

• Employer and employee details. Company name and address, the employee's name, and often an employee ID.
• Pay period and pay date. The start and end dates of the period and the date paid.
• Earnings. Hours worked, pay rate, regular pay, overtime, bonuses, and any other earnings.
• Gross pay. The total earned before any deductions.
• Deductions. Taxes withheld and other amounts subtracted, each listed separately.
• Net pay. The amount actually paid after deductions, the take home figure.
• Year to date totals. Running totals of earnings and deductions for the year so far.

Earnings vs deductions

The two halves of a stub are earnings and deductions. Earnings show how the gross pay was built, for example a number of regular hours at an hourly rate, plus overtime and any bonus. Deductions show everything subtracted to reach net pay. Common deductions include income tax withholding, and depending on the country and situation, contributions to social programs and any benefits or wage garnishments. Listing each deduction on its own line lets the worker see exactly where the money went.

US and Canada differences

The structure of a pay stub is similar across countries, but the specific deductions differ. In the United States, a stub commonly shows federal income tax withholding, Social Security and Medicare, and any state or local taxes, along with benefit deductions. In Canada, a stub commonly shows federal and provincial income tax, Canada Pension Plan contributions, and Employment Insurance premiums. If you are creating stubs, use the deduction labels that match where the worker is employed, and follow local rules for what must appear.

How to fill out a pay stub template step by step

1. Enter the employer and employee details. Company name and address, the worker's name, and any ID.
2. Add the pay period and pay date. The period covered and the date the pay is issued.
3. List the earnings. Hours and rate for hourly workers, or the salary amount, plus overtime and bonuses.
4. Total the gross pay. Add all earnings to get the gross figure.
5. Enter each deduction. List taxes and other withholdings on separate lines with amounts.
6. Calculate net pay. Subtract total deductions from gross pay.
7. Update year to date totals. Add this period to the running totals for the year.
8. Review and save. Check the math, then save or send the stub with the paycheck.

Do employers have to provide pay stubs?

Whether a written pay statement is required depends on location. Many US states require employers to give employees a pay stub or access to one, while a few do not, and the required contents vary by state. In Canada, employment standards in each province generally require employers to give employees a statement of earnings showing hours, rate, gross pay, deductions, and net pay. Because the rules differ, an employer should confirm what is required where their workers are, and keep copies of the stubs they issue.

Pay stubs for contractors and self-employed people

Independent contractors are usually not paid through payroll and do not get a traditional pay stub, since taxes are not withheld for them. Still, a contractor or a self-employed person may want a pay stub style record to show income, for example when applying for a loan. In that case the stub reflects payments received and any voluntary set asides rather than employer withholding. If you invoice clients, keeping stubs alongside your invoices gives you a tidy income record.

How to read your pay stub

Reading a stub is easier when you go through it in order. Start at the top with the pay period and pay date, so you know exactly which stretch of work the check covers. Move to the earnings section and check that the hours and rate, or the salary amount, are what you expected, including any overtime or bonus. Then look at gross pay, which should equal all the earnings added up. Next, review each deduction line and make sure the taxes and other amounts look right for your situation. Finally, confirm the net pay matches what actually landed in your account. The year to date column is worth a glance too, since it shows your running totals and helps at tax time.

Common pay stub mistakes

• Wrong hours or rate. A typo in hours worked or pay rate changes gross pay, so check these first.
• Missing overtime. Overtime should appear as its own line where it applies, not be folded into regular pay.
• Deductions that do not add up. The listed deductions should reconcile to the difference between gross and net pay.
• Outdated withholding. After a life change, withholding may need updating so the right tax comes out.
• No stub at all. If you never receive a statement, ask, since many places require employers to provide one.

Using pay stubs as proof of income

Pay stubs are one of the most commonly requested documents when you need to prove income, for example when renting an apartment, applying for a loan, or leasing a car. A landlord or lender usually asks for a recent stub or two to confirm you earn what you say and that the income is steady. This is a good reason to keep your stubs organized and easy to find rather than discarding them each pay period. Store them somewhere safe, and if you keep digital copies, keep them consistent so a run of recent stubs is ready whenever someone asks. Because a stub can be used to verify income, only ever create or share stubs that reflect real, accurate pay.

Fill out and save a pay stub online

You can complete a pay stub on your computer instead of by hand. Open our fill a PDF tool, add a pay stub template, type in the earnings and deductions, and download a clean copy for the worker. It is processed in your browser, so payroll details stay on your own device.

For related payroll paperwork such as a timesheet or direct deposit form, browse the form templates library, and if a document needs a signature, the sign a PDF tool lets you add one.

Keep your payroll records together

Payroll means a new stub every pay period, plus timesheets and tax forms. Create a free account on fillable.ca to save your filled pay stubs, reuse a template each period without starting over, and keep your payroll records organized in one place.