A pay stub is a document issued by an employer that shows an employee’s gross earnings, deductions from those earnings, and net pay. Pay stubs are created in conjunction with paychecks, so each employee gets a new pay stub for each pay period.
A pay stub can also be called a paycheck stub, salary statement, earnings statement, or pay slip.
Pay stubs show the total amounts an employee has earned, amounts deducted from those earnings, and the remaining take-home pay after deductions. Separate columns show figures for the current pay period and year to date.
When a business is new, small, or has very limited resources, it may have no choice but to handle pay stubs and other payroll responsibilities the hard way—manually. Doing payroll this way can mean relying on a jumble of spreadsheets, paper documents, separate websites, and so forth, every pay period. It’s possible to do that way if you only have a few employees, but it’s complicated and time-consuming. Payroll software is a much better option for small businesses and becomes essential as they grow. Issuing paychecks and pay stubs is quicker and easier once the data is entered for each employee.
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