A Pay Stub is a document provided to employees with each paycheck, detailing their earnings for that pay period, including wages, overtime, bonuses, and deductions such as taxes and social security contributions.
What is a Pay Stub?
Pay stubs are essential for employees to understand their compensation, verify accuracy, and for record-keeping purposes. They are also used for loan applications and tax filings.
Practical Example of a Pay Stub:
An employee receives a monthly pay stub showing gross pay, deductions for federal and state taxes, insurance premiums, retirement contributions, and the net amount paid to them.