Pay Stub | Meaning and Definition

What is Pay Stub?

A pay stub is a type of document provided by an employer that details an employee’s total earnings, deductions, and net compensation. Pay stubs are generated in conjunction with paychecks, so each employee receives a fresh one every paid month. 

A pay stub can be printed with or without a paper paycheck or sent to employees, or released online to verify the direct deposit of their checks. A paycheck stub is also known as a salary report, earnings statement, or payment slip.

When a company is new, inexperienced, or has limited resources, it may have no alternative but to manually manage pay stubs and other payroll tasks. Payrolling can entail relying on a mess of physical records, websites, and so on for each month. If you only have a small working staff, you can do it that way, but this can be time-consuming. Payroll software is a better alternative for most firms, and it becomes increasingly important as these companies start expanding further. Once the data for employees has been collected and submitted, issuing paychecks and pay stubs is easier.

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