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A pay stub, also known as an earning statement, wage statement, pay slip, or paycheck stub, serves as a financial record detailing an employee's payment for each pay period. While it can seem confusing, understanding its components is straightforward. Typically, a pay stub includes employee and company information, wages earned for the current pay period and year-to-date, a tax breakdown detailing state and federal taxes paid, and benefits deductions. Ultimately, the pay stub is crucial as it clearly shows how much an employee earns. When receiving a physical paycheck, the pay stub is usually attached, confirming payment has been received.