Pay Stub
The document accompanying each wage payment that shows how employee pay was calculated, required to meet California's detailed itemization standards.
What Is a Pay Stub?
A pay stub (also called a paycheck stub or earnings statement) is the document that accompanies each wage payment and details how an employee's compensation was calculated. In California, pay stubs must meet the strict requirements of Labor Code Section 226, which mandates nine specific pieces of information on every pay stub provided to employees.
While the terms "pay stub" and "itemized wage statement" are often used interchangeably, they refer to the same legally required document. California's pay stub requirements are among the most detailed in the nation, and non-compliance can result in penalties even when employees are paid correctly.
Required Pay Stub Information
California Labor Code Section 226(a) requires every pay stub to include these nine elements:
The Nine Required Elements
| # | Required Element | Description |
|---|---|---|
| 1 | Gross wages earned | Total compensation before deductions |
| 2 | Total hours worked | Actual hours for non-exempt employees |
| 3 | Piece-rate information | Units and rate if applicable |
| 4 | All deductions | Every deduction itemized separately |
| 5 | Net wages earned | Take-home pay amount |
| 6 | Pay period dates | Inclusive start and end dates |
| 7 | Employee name and ID | Name plus last 4 of SSN or employee ID |
| 8 | Employer name and address | Legal name and physical address |
| 9 | Hourly rates and hours | Each rate with corresponding hours |
Element Details
1. Gross Wages Earned
Must include all compensation for the pay period:
- Regular wages
- Overtime pay
- Double time pay
- Commissions
- Bonuses
- Piece-rate earnings
- Any other compensation
2. Total Hours Worked
Required for all non-exempt employees:
- Must be actual hours, not estimated
- Should match timekeeping records
- Not required for exempt salaried employees
3. Piece-Rate Information
For employees paid by the piece:
- Number of units earned
- Applicable rate per unit
- Rest period compensation (separate)
- Nonproductive time compensation (separate)
4. All Deductions
Each deduction must be itemized:
| Deduction Type | Must Be Listed As |
|---|---|
| Federal tax | Federal Income Tax Withholding |
| State tax | CA State Income Tax |
| Social Security | Social Security/FICA |
| Medicare | Medicare |
| State disability | CA SDI |
| Insurance | Health Insurance Premium |
| Retirement | 401(k) Contribution |
| Garnishments | Specific garnishment description |
5. Net Wages Earned
The actual amount the employee receives:
- Gross wages minus all deductions
- Must match payment amount exactly
- Should be clearly labeled
6. Pay Period Dates
Specific dates covered:
- Start date of pay period
- End date of pay period
- Cannot be vague (e.g., "January" is not sufficient)
7. Employee Name and Identification
Employee identification:
- Full legal name
- Either last four digits of SSN OR employee ID number
- Employee ID preferred for privacy protection
8. Employer Name and Address
Employer identification:
- Legal business name (not just DBA/trade name)
- Complete physical address
- P.O. Box alone is not sufficient
9. Hourly Rates and Corresponding Hours
When employee works at multiple rates:
- Each hourly rate must be listed
- Hours worked at each rate must be shown
- Overtime rates shown separately
Sample Compliant Pay Stub
===============================================================
TIMEWAVE SCHEDULING, INC.
456 Market Street, San Francisco, CA 94102
===============================================================
Pay Period: 03/01/2024 - 03/15/2024 Pay Date: 03/22/2024
Employee: Maria Garcia ID: EMP-4521
===============================================================
EARNINGS
---------------------------------------------------------------
Description Hours Rate Amount
---------------------------------------------------------------
Regular 72.00 $22.00 $1,584.00
Overtime (1.5x) 8.00 $33.00 $264.00
Saturday Premium 16.00 $2.00 $32.00
---------------------------------------------------------------
GROSS PAY $1,880.00
===============================================================
DEDUCTIONS
---------------------------------------------------------------
Federal Income Tax $225.60
CA State Income Tax $112.80
Social Security (6.2%) $116.56
Medicare (1.45%) $27.26
CA SDI (1.1%) $20.68
Medical Insurance $125.00
Dental Insurance $25.00
401(k) Pre-Tax (6%) $112.80
---------------------------------------------------------------
TOTAL DEDUCTIONS $765.70
===============================================================
NET PAY $1,114.30
===============================================================
YEAR-TO-DATE
Gross Wages: $11,280.00 Deductions: $4,594.20 Net: $6,685.80
===============================================================
TOTAL HOURS WORKED THIS PERIOD: 80.00
Regular: 72.00 | Overtime: 8.00
===============================================================
Electronic vs. Paper Pay Stubs
Paper Pay Stubs (Default)
Paper pay stubs must be provided unless employee opts for electronic:
| Requirement | Details |
|---|---|
| Timing | At time of wage payment |
| Format | Legible, on paper |
| Availability | Employee can review before cashing check |
| Retention | Employer keeps copy 3 years |
Electronic Pay Stubs
California permits electronic pay stubs only with conditions:
Mandatory Requirements:
- Voluntary consent - Employee must opt in
- Separate authorization - Cannot be bundled with direct deposit consent
- Free access - Employee must access without charge
- Printable - Employee must be able to print at no cost
- Paper on request - Must provide paper copy if asked
- Continued access - Available for at least 3 years
Electronic Consent Best Practices
| Do | Don't |
|---|---|
| Get explicit written consent | Assume consent from direct deposit |
| Explain how to access statements | Require special software |
| Confirm employee has computer access | Force use of personal devices |
| Allow opt-out at any time | Make paper requests difficult |
| Provide clear instructions | Hide access information |
Sample Electronic Consent Language
ELECTRONIC PAY STUB AUTHORIZATION
I voluntarily consent to receive my itemized wage statements
electronically. I understand that:
- I can access my pay stubs at [system/website]
- I can print my pay stubs at no cost
- I can request paper pay stubs at any time
- I can revoke this consent at any time
- My pay stubs will remain accessible for at least 3 years
[ ] I consent to electronic delivery of wage statements
[ ] I prefer to receive paper wage statements
Signature: _________________________ Date: ___________
Common Pay Stub Errors
Information Errors
| Error | Problem | Solution |
|---|---|---|
| Wrong employer name | Using DBA only | Include legal name |
| Missing address | P.O. Box only | Add street address |
| Wrong dates | Vague period description | Use specific dates |
| Missing hours | No total hours for hourly employees | Add hours worked |
Calculation Errors
| Error | Problem | Solution |
|---|---|---|
| Overtime rate | Wrong multiplier used | Use correct 1.5x or 2x rate |
| Regular rate | Not including all compensation | Include bonuses, etc. |
| Net pay | Doesn't match gross minus deductions | Verify calculations |
| Hours | Don't match timekeeping records | Reconcile systems |
Deduction Errors
| Error | Problem | Solution |
|---|---|---|
| Bundled deductions | "Taxes" instead of itemized | Separate each deduction |
| Missing descriptions | Code numbers only | Add descriptive names |
| Unauthorized deductions | Illegal deductions listed | Remove improper deductions |
Pay Stub Penalties
Statutory Penalties Under LC 226(e)
If pay stubs are non-compliant and employee suffers injury:
| Violation | Penalty Per Pay Period | Maximum |
|---|---|---|
| First violation | $50 | $4,000 |
| Subsequent violations | $100 | $4,000 |
Plus:
- Actual damages suffered
- Costs and attorney fees
- Injunctive relief
What Constitutes "Injury"
Courts have found injury when employees:
- Cannot determine if paid correctly
- Must perform calculations to verify pay
- Cannot identify employer for correspondence
- Are denied required information
Even technical violations may constitute injury if they prevent verification of correct payment.
PAGA Penalties
Under the Private Attorneys General Act:
- $100 per employee per pay period (initial)
- $200 per employee per pay period (subsequent)
- 75% to state, 25% to employees
- Can result in substantial class-wide exposure
Special Situations
Multiple Rates of Pay
When employees work at different rates:
EARNINGS
Description Hours Rate Amount
Cashier 32.00 $17.00 $544.00
Floor Lead 24.00 $20.00 $480.00
Overtime - Cashier 4.00 $25.50 $102.00
Overtime - Lead 4.00 $30.00 $120.00
---------------------------------------------------------------
GROSS PAY $1,246.00
Each rate must be listed with corresponding hours.
Piece-Rate Pay
Piece-rate employees require additional information:
PIECE-RATE EARNINGS
Units Completed: 500
Piece Rate: $2.00 per unit
Piece-Rate Total: $1,000.00
Rest Period Compensation (5 hrs @ $16.67): $83.35
Recovery Period Compensation (1 hr @ $16.67): $16.67
Nonproductive Time (2 hrs @ $16.67): $33.34
---------------------------------------------------------------
GROSS PAY $1,133.36
Commission Pay
For commissioned employees:
- Show commission calculation method
- List sales or transactions if practical
- Include draw or advance information
- Show reconciliation with prior periods
Tipped Employees
If tips are involved:
- Cash tips reported by employee
- Credit card tips paid through employer
- Tip credits (if applicable)
- Any tip pooling distributions
Pay Stub Retention
Employer Obligations
| Requirement | Standard |
|---|---|
| Retention period | Minimum 3 years |
| Accessibility | Must provide within 21 days of request |
| Format | Original or copy acceptable |
| Location | California-accessible storage |
Employee Access Rights
Employees can request pay stub copies:
- Written request required
- Employer must respond within 21 calendar days
- Can charge reasonable copying costs
- Must provide copies of all statements requested
- Former employees have same rights
Best Practices for Compliant Pay Stubs
Payroll System Requirements
Ensure your system can:
- Generate all nine required elements
- Calculate overtime correctly for California
- Track multiple pay rates per employee
- Itemize all deductions separately
- Produce records for retention period
- Handle electronic delivery with proper consent
Regular Audits
Review pay stubs periodically for:
- All nine elements present
- Employer legal name (not just DBA)
- Complete street address
- Specific pay period dates
- Hours worked listed for non-exempt
- Each rate shown separately
- All deductions itemized
- Calculations accurate
- Net matches gross minus deductions
Training
Train payroll staff on:
- California-specific requirements
- How to handle special pay situations
- Common errors to avoid
- Employee inquiry procedures
- Escalation for compliance questions
Integration with Time Tracking
Accurate pay stubs depend on accurate time records. Your system should:
- Capture exact clock-in and clock-out times
- Record meal and rest breaks
- Track hours by rate or department
- Calculate overtime under California rules
- Export data directly to payroll
Timewave's scheduling and time tracking platform ensures accurate hours flow seamlessly into compliant pay stubs.
Learn more about Timewave: