What is a paycheck stub?

A paycheck stub is a document that provides a detailed breakdown of an employee's earnings for a specific pay period, along with the deductions taken and the resulting net pay. This information is crucial for employees as it helps them understand how their gross income is calculated, what deductions are being withheld (such as taxes, social security, and benefits), and how much they will ultimately take home after those deductions.

The paycheck stub typically includes various elements such as hours worked, overtime hours, various types of deductions (like health insurance and retirement contributions), and the net pay, which is the amount the employee receives after all deductions have been applied. Understanding this document is vital for employees to verify the accuracy of their pay and ensure they are being compensated correctly.

In contrast, other options describe different types of documents that do not encapsulate the specific information presented in a paycheck stub. For instance, a report detailing annual payroll expenditures would summarize costs on a larger scale instead of focusing on individual earnings. A list of all employees and their salaries represents employee data but does not provide the specifics of an individual's pay for a pay period. Lastly, a summary of employee work hours pertains to attendance and labor input, without detailing earnings and deductions.