Learn what every line on a pay stub means, how to spot errors, and which tools can help you create accurate records. This guide covers reading, generating, and safely storing pay stubs for employees and small businesses.

Pay stubs are more than receipts—they’re a roadmap of your compensation. If you’ve wondered how to read a pay stub, start by identifying gross pay, net pay, taxes, and deductions, then compare hours, rates, and pay periods for consistency.

Break the stub into sections: earnings (regular, overtime, bonus), taxes (federal, state, local), and deductions (benefits, retirement, garnishments). Verify year-to-date totals, pre-tax versus after-tax items, and that your W-4 elections and pay period dates are correct.

For contractors and small employers, a pay stub generator online can streamline documentation. Choose reputable tools that calculate state-specific taxes, clearly label earnings and deductions, support direct deposit memos, and provide downloadable PDFs for secure recordkeeping.

If you prefer a pay stub template free, check that formulas are accurate and that it includes employer and employee info, pay dates, the pay period, YTD totals, and any required notices. Store stubs securely, reconcile deposits, and report discrepancies promptly to HR or your payroll provider.