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In this video, Hector Garcia, a CPA and QuickBooks consultant, explains the significance of pay stubs. He outlines that pay stubs detail each employee's paycheck for a specific period and are usually provided with physical checks, though many employers now use direct deposit and offer electronic pay stubs to streamline the payroll process. Pay stubs play a crucial role in keeping employees informed about their earnings and provide a clear breakdown of their pay. Hector encourages viewers to like the video if they are interested in more content related to payroll, accounting, and small business topics.