What is a payment stub and how do you make one?

A payment stub — also known as a paystub, payroll check stub, or employee pay stub — is a document that details an employee’s earnings and deductions for a specific pay period. It serves as an important financial record, helping employees track their income and ensuring employers maintain transparency in payroll processes.

Understanding pay stub requirements is essential for both employees and employers. For instance, some US states require businesses to provide pay stubs, while others do not. Additionally, employers must ensure that their payroll check stubs comply with federal and state regulations.

In this article, we’ll break down what a pay stub is, its key components, legal requirements, and how to create one — whether manually or with online tools. So let’s jump straight in.

What is a pay stub?

A pay stub is a document that accompanies an employee’s paycheck or is provided separately (either digitally or in print). Among other things, it shows a detailed breakdown of:

• Gross earnings before deductions

• Taxes and other deductions taken from the paycheck

• Net pay (the final amount received by the employee)

Pay stubs are important for several reasons. Employees often use pay stubs to verify their income when applying for loans or rental applications, while employers rely on them for record-keeping, payroll audits, and tax compliance.

In case of discrepancies or disputes, pay stubs also serve as proof of earnings and deductions, which benefits both parties.

Are employers required to provide pay stubs?

Federal law does not require employers to issue pay stubs, although the Fair Labor Standards Act (FLSA) mandates that employers keep accurate payroll records.

However, state laws vary. Some states require you to provide pay stubs, while others do not.

Pay stub requirements by state

Each state falls into one of the following categories:

Access states (states that require pay stubs)

In these states, employers must provide employees with access to their pay information, either electronically or in paper form:

• Alaska​

• Arizona​

• Idaho​

• Illinois​

• Indiana​

• Kansas​

• Kentucky​

• Maryland​

• Michigan​

• Missouri​

• Montana​

• Nebraska​

• Nevada​

• New Hampshire​

• New Jersey​

• New York​

• North Dakota​

• Oklahoma​

• Pennsylvania​

• Rhode Island​

• South Carolina​

• Utah​

• Virginia​

• West Virginia​

• Wisconsin​

• Wyoming

Note that employers can provide electronic pay stubs, but employees must have the ability to access and print them.

Access/print states (states that require pay stubs and must allow printing)

These states require employers to provide written or printed pay stubs. Electronic pay stubs are permissible if employees have the capability to print them:​

• California​

• Colorado​

• Connecticut​

• Iowa​

• Maine​

• Massachusetts​

• New Mexico​

• North Carolina​

• Texas​

• Vermont​

• Washington

Note: Employers must ensure that employees can easily access and print electronic pay stubs if provided.

Opt-out states (states that allow electronic-only pay stubs)

In these states, employers can provide electronic pay stubs, but employees have the right to opt out and receive paper copies:​

• Delaware​

• Minnesota​

• Oregon​

Opt-in states (states that require paper pay stubs unless employees opt for digital)

In these states, employers must obtain employee consent before providing electronic pay stubs. Without consent, paper pay stubs are mandatory:​

• Hawaii

States with no pay stub requirements

These states do not mandate employers to provide pay stubs to employees:​

• Alabama​

• Arkansas​

• Florida

• Georgia​

• Louisiana​

• Mississippi​

• Ohio​

• South Dakota​

• Tennessee​

Note: In these states, while not required by law, providing pay stubs is considered best practice for transparency and record-keeping.

What are the key components of a pay stub?

Pay stubs typically includes the following key details:

Employee information

• Name.

• Address.

• Employee ID (if applicable).

Employer information

• Company name.

• Business address.

Pay period

• The start and end dates of the payroll cycle.

Earnings breakdown

This should include:

• Regular pay.

• Overtime pay.

• Any bonuses and commissions.

Deductions

All deductions should be clarified on the pay stub, including:

• Federal, state, and local income taxes, as well as Social Security (FICA) and Medicare.

• Health insurance benefits, retirement plan contributions (401k), and any other voluntary deductions.

• Wage garnishments (if applicable).

Net pay

• The final amount the employee receives after deductions.

Year-to-date (YTD) totals

• The employee’s cumulative earnings, deductions, and net pay for the year so far.

How to make a pay stub

You can create a pay stub manually, using payroll software, or through online generators. Here’s how:

1. Gather the required information

Before generating a pay stub, collect all the information outlined above, including:

• The employee’s details (name, address, Social Security number)

• Your business details (business name, EIN, address)

• The pay period details (dates, hourly rate, total hours worked etc.)

• A full breakdown of the taxes and deductions applicable

2. Choose a method to create the stub

As mentioned, you have several options, including:

• Manually using a spreadsheet. Design a pay stub template, and input the earnings, deductions, and tax calculations manually. Then, save and print or email the pay stub.

• Using an online pay stub generator. Some websites allow you to generate pay stubs instantly, although your employees may have privacy concerns. You also still have to manually input the deductions.

• Using payroll software. This is undoubtedly the quickest and easiest option, as all deductions and calculations are fully automated in line with state law. This is especially ideal for businesses handling multiple employees.

3. Verify accuracy and compliance

The final step is to ensure all taxes and deductions are correctly calculated, and that state-specific requirements are met. Again, if you’re using software like Remote Payroll, this is done automatically for you — saving you time and resources.

Don’t forget to maintain your records for legal and tax purposes.

4. Distribute the pay stubs to your employees

Paper pay stubs are usually printed and handed out physically, while electronic pay stubs are sent through email or uploaded to a secure, password-protected employee portal.

How Remote can help

A pay stub is an essential payroll document that benefits both employees and employers. While federal law doesn’t require them, many states have pay stub requirements that employers must follow.

Creating them manually can take up a lot of time and resources, especially if you have multiple employees. That’s why it’s recommended to use an automated, trusted payroll platform like Remote, where we’ll handle everything for you.

To learn more about how it works — and how we can remove all your payroll processing headaches — speak to one of our friendly experts today.

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