How to Read a Pay Stub (Simple Guide 2025)

What is a pay stub, and why does it matter?

Last updated: August 2025

A pay stub—also called a payslip or remittance advice—explains your earnings, deductions and take‑home pay. Knowing how to read a pay stub helps you verify income and spot errors before they affect loans or rentals. Landlords, auto lenders and underwriters often request recent stubs to confirm steady income and employment.

At FinancialDocsProvider.com, we are compliance‑first. We format and organize existing documents for clarity; we do not invent numbers, dates or parties. Our role is to help your records speak clearly. Keep reading for legal basics, permitted edits, prohibited changes, practical use cases and a ready‑to‑use checklist.

Related Entities & Terms

• Pay stub / payslip / payroll statement / remittance advice
• W‑2 (US), 1099 (US), T4 (Canada), Notice of Assessment (NOA, Canada), P60/P45/SA302 (UK)
• Gross vs net pay, year‑to‑date (YTD) totals, variable vs fixed deductions
• Employer Identification Number (EIN), Social Security Number (SSN), National Insurance (NI) number, Social Insurance Number (SIN)
• IRS, CFPB & FTC (US regulators); HMRC & FCA (UK authorities); CRA & FCAC (Canada)
• Bank statements, employment verification letters, offer letters, profit & loss statements
• Direct deposit, payroll providers (ADP, Paychex, Gusto), PDF/A, OCR and metadata
• Underwriting, income verification, affordability assessment and fraud detection

What are the legal basics of reading and editing pay stubs?

Summary: Pay stubs are regulated records of gross pay, deductions and net pay. Most employers must provide them, and the facts they contain cannot be altered. Formatting for clarity is acceptable; falsifying information is not.

Across the United States, United Kingdom and Canada, one principle is consistent: a pay stub must accurately show what you earned and what was deducted. In the UK, GOV.UK guidance says a payslip must display earnings before and after deductions, variable deductions such as tax and National Insurance and, if pay varies, the hours worked. Acas adds that payslips should show gross and net amounts, variable deductions, any fixed deductions and a breakdown of payment methods.

In Canada, a pay stub (or pay statement) summarizes income and required withholdings. The Ontario Securities Commission’s education portal explains that stubs show gross pay, net pay and amounts withheld for income tax, Employment Insurance (EI) and Canada Pension Plan (CPP). By law, employers must deduct tax, EI and CPP, remit them to the Canada Revenue Agency and report income and deductions on the T4 slip.

The United States has no single federal rule requiring employers to give pay stubs, but most states do. Whatever the jurisdiction, stubs should reconcile with official tax forms: W‑2 or 1099 in the US, P60/P45 in the UK and T4 in Canada. The Canada Revenue Agency notes that a T4 identifies all remuneration paid by an employer in a calendar year, must be issued when thresholds are met and lists salary, tips, bonuses, vacation pay, commissions and taxable benefits along with the amounts withheld.

Lenders treat pay stubs as part of their due‑diligence package. The U.S. Consumer Financial Protection Bureau (CFPB) clarifies that a lender cannot require pay stubs or W‑2s just to provide a Loan Estimate, but may ask for documents later to verify your information. Once you proceed with a loan application, lenders commonly request pay stubs to confirm income.

Formatting is not the same as fabrication. Converting to PDF, improving legibility or redacting sensitive identifiers preserves the facts. Changing amounts, dates or parties crosses into falsification. In many places, knowingly presenting a falsified stub may constitute fraud, misrepresentation or forgery—offences with serious civil and criminal consequences.

Quick example: If your gross pay is $2,480 and deductions total $520, your net pay should be $1,960. If your stub shows $1,960 but your bank deposit is $1,500 with no explanation, expect questions. The documents must match, or you must supply a legitimate reason such as a separate deduction or benefit repayment.

Which edits to pay stubs are allowed?

Summary: You may improve readability and organization—such as converting to PDF, merging pages or redacting sensitive identifiers—so long as numbers, dates and parties remain unchanged.

Our rule is straightforward: if an edit helps a reviewer understand your authentic information without changing the facts, it’s generally permissible. Payroll portals sometimes export low‑resolution images or use mixed fonts. Combining pages into a single PDF, straightening scans, adding bookmarks or page numbers and ensuring text is OCR‑searchable are all reasonable adjustments. You can also remove blank pages, crop repeated instructions or re‑order multi‑company stubs so the most recent appears first. The goal is clarity, not deception.

Redaction is common and lawful when used carefully. Many stubs display full Social Security (US), National Insurance (UK) or Social Insurance (Canada) numbers. Masking all but the last four digits protects privacy while leaving essential details visible. You may also redact a home address when providing separate proof of address, or hide bank account numbers on direct‑deposit slips while leaving routing and account names visible for verification.

Some exports include watermarks or embedded notes. Removing these marks does not alter the numbers and often reduces file size. Converting proprietary formats (e.g., .prn or .xls) into a widely accessible PDF/A improves compatibility with lender portals. If a single pay period covers multiple roles, you can add a summary cover page listing total gross, total deductions and net pay for the period, with a clear statement that figures reconcile to the attached stubs.

Here are examples of lawful edits our team performs regularly:

• Redaction and PII minimisation: Masking SSN/SIN/NI numbers, employee IDs and home addresses while keeping employer, pay period and net pay visible.
• Combining and re‑ordering: Merging multiple periods into one PDF, sequencing pages chronologically and adding bookmarks or page numbers.
• OCR and tagging: Making scanned text searchable and adding PDF tags for accessibility compliance.
• Repairing exports: Fixing misaligned tables, removing heavy shading, splitting landscape pages and rotating sideways scans.
• File conversion: Converting proprietary payroll files into PDF/A for long‑term storage and easy uploads.

Mini‑scenario: Your employer’s portal prints two columns off the edge of the page. We crop to the content, rotate the page, add page numbers and run OCR. The result is a crisp, searchable PDF that a lender can review quickly—without changing a single dollar or date.

Quality check before sharing:

• Zoom to 200% and verify that numbers and headers remain legible.
• Confirm that gross − deductions = net for each period.
• Match each net amount to a bank deposit within the expected date range.
• Ensure redactions do not cover pay period dates, employer details or totals.
• Remove duplicate pages and ensure the most recent stub appears first.

When in doubt, ask yourself: does this edit change the story the original stub tells? If yes, stop and consult a compliance professional.

What types of pay stub edits are illegal?

Summary: Changing numbers, dates or parties is falsification and may be treated as fraud. Only formatting—not fabrication—is permissible.

It can be tempting to “tweak” income or expand employment history, especially when financing is at stake. Resist the urge. Altering facts on your pay stub is illegal in most jurisdictions and can result in loan denials, job loss and even prosecution. Fraud statutes apply to both paper and digital documents.

Illegal edits include:

• Inflating gross pay, overtime, bonuses or commissions.
• Editing net pay or year‑to‑date totals without matching bank deposits.
• Altering pay period start or end dates or adding extra periods.
• Replacing the employer name, address or tax ID with another entity’s details.
• Deleting mandatory deductions to make net pay appear higher.
• Creating a pay stub from scratch without employment or using someone else’s stub.

How reviewers detect issues: Lenders compare stubs to bank deposits, W‑2/T4 forms and tax returns. Many also review PDF metadata and font changes, looking for signs of manual editing. In the US, falsified documents can trigger federal fraud charges. In the UK, forgery may be prosecuted under the Fraud Act 2006. In Canada, misrepresentation on a loan application can lead to fines, refusal of credit and referrals to law enforcement.

If your income is short, discuss alternatives with the lender. Options may include bank‑statement underwriting, a co‑applicant or a larger down payment. Never risk your future by altering facts.

When do you need professional document formatting?

Summary: Professionally formatted pay stubs can speed approvals for rentals, auto loans, small‑business financing and immigration matters. Clear presentation also helps self‑employed borrowers explain their earnings.

Reviewers assess not just what you earn but how clearly you present it. Blurry screenshots, partial pages or mixed formats can slow decisions—even when your income is sufficient. Below are common situations where professional formatting makes a measurable difference.

Renters & landlords

Many landlords look for income of roughly three times monthly rent. They may request two to four recent pay stubs and a bank statement showing the deposit. If your stubs are thermal printouts that have faded or are split across several portal screens, details get lost. We merge pages into one PDF, add dates to file names, and redact SSNs while keeping salary details intact. For context on pay stubs versus bank statements as proof of income, see our comparison of pay stubs vs bank statements article.

Example: A renter earning hourly wages had four separate portal screenshots for one period. We combined them into a single, searchable PDF with bookmarks for each week. The landlord approved the application without follow‑up questions.

Auto & car loans

Auto lenders often ask for the last three to six stubs and will cross‑reference them with bank statements. Weekly or bi‑weekly pay can create large packets. We combine stubs by month, verify that each shows gross pay, deductions and net pay and add brief annotations for unusual items such as one‑time bonuses or overtime spikes. For more on how many stubs car lenders request and how to package them, see our auto finance guide on the blog.

Tip: If your paycheck includes pre‑tax benefits, note them in a cover page so the lender understands why taxable wages differ from gross earnings.

Small business & SBA loans

SBA lenders typically require tax returns, profit‑and‑loss statements and employer verifications in addition to pay stubs. Consistency is critical: stub totals should reconcile to W‑2/1099 figures and to deposits. A tidy, bookmarked packet signals that you are organized and transparent. If you’re unsure how to compile these materials, our pay stub formatting mistakes article outlines common pitfalls.

Scenario: A borrower with seasonal overtime submitted six months of stubs. We added a one‑page summary charting gross, deductions and net by month, then linked each month to the supporting stubs. The underwriter cleared the income review in the first pass.

Self‑employed & contractors

Freelancers and sole proprietors rarely have traditional stubs. Instead, they present invoices, bank deposits and tax filings. We can create a self‑employed earnings statement that consolidates invoices, matches them to deposits and references 1099‑NEC, Schedule C or T2125 documents. Our guide on creating legal pay stubs when you’re self‑employed explains the process. Every number must reconcile to a real invoice and deposit.

Note: Some reviewers accept year‑to‑date profit‑and‑loss statements with bank statements in place of stubs. Ask what formats are acceptable before you submit.

Immigration, visas & other uses

Some immigration and visa applications require proof of income or employment. Officers are trained to spot inconsistencies. A professional packet that includes clear stubs, bank statements and employer letters can speed review. In the UK, payslips should show earnings before and after deductions and hours worked. In Canada, ensure your pay statement shows gross pay and required deductions.

How does FinancialDocsProvider work?

Summary: Our structured, compliance‑driven process is simple: you submit documents, we verify consistency, we apply formatting and redaction, and we deliver final files quickly.

Our process respects your data while delivering polished, reviewer‑friendly files. Here’s what happens when you engage us:

1. Intake & consultation: Upload pay stubs, bank statements and related forms via our secure portal. We schedule a brief call to clarify goals—renting, auto, SBA and more—and identify exactly which documents are needed.
2. Reconciliation & quality check: We review for completeness and consistency, confirming that stubs match bank deposits and W‑2/1099 figures. If something is missing or inconsistent, we request clarification before any formatting work begins.
3. Formatting & redaction: We straighten scans, run OCR, add page numbers, merge files and redact sensitive identifiers. We never change earnings, dates or employer information.
4. Packaging & delivery: Typical turnaround is 24–48 hours (rush options available). We provide a bundled PDF with labeled bookmarks, a summary sheet and a metadata report that outlines file properties and any redactions.
5. Follow‑up support: If a reviewer needs minor adjustments—splitting a file, adding an index or highlighting deposits—we provide revisions at no extra cost. We archive your files securely for a limited period in case you need them again.

Data protection: We use least‑privilege access, encrypted storage and time‑limited links. We do not fabricate information or edit numbers, and we will decline projects that request illegal changes.

What should be on your pay stub? (Compliance checklist)

Summary: A compliant pay stub includes specific details about earnings, deductions and identifiers. Use this checklist to audit your stubs before submission.

Review each line before sending stubs to a landlord or lender. Missing or inconsistent information can delay approvals even when your income is strong. Use the checklist below to self‑audit:

• Employer & employee information: Company name, address and tax identification number (EIN/NI/SIN), plus your name and sometimes your address.
• Pay period details: Start and end dates, pay date and frequency (weekly, bi‑weekly, monthly).
• Gross pay: Total earnings before deductions.
• Itemised deductions: Income tax, National Insurance, EI/CPP, pension contributions, union dues, insurance premiums and other fixed or variable deductions.
• Net pay: The amount you take home after deductions.
• Year‑to‑date totals: Cumulative gross, deductions and net pay for the calendar year.
• Hours worked: If pay varies with hours, list total and overtime hours and any different rates.
• Payment method breakdown: How wages were paid if more than one method applies (direct deposit, cheque, cash).
• Employer contributions: Employer‑paid portions of social programs or pension matches, if shown.
• Matching documents: Ensure reconciliation with bank statements and tax forms (W‑2/1099/T4). For self‑employed, reconcile with invoices and deposits.

Packaging tips:

• Include two to three recent stubs or more if requested, labeled chronologically.
• Pair each stub with bank statements showing the corresponding deposits; highlight deposit amounts for quick verification.
• If providing a W‑2 or T4, confirm year‑end numbers match the total of your stubs and include the full document.
• Submit one clearly named PDF; avoid photos or screenshots unless specifically permitted.
• Check legibility: text should be crisp; explain any handwritten notes in a brief cover letter.
• Keep filenames consistent: YYYY‑MM Employer Name – Pay Stub.pdf reads better than random strings.
• Include a one‑page summary if you have many stubs, listing gross, deductions and net by month.

Final self‑check: Ask yourself whether someone unfamiliar with your job could follow the trail from stub to bank deposit to tax document. If not, add labels or a summary page.

What red flags lead to pay stub rejections?

Summary: Reviewers look for inconsistencies, missing data and signs of tampering. Avoid these common red flags to prevent delays or denials.

Even honest applicants can be tripped up by formatting errors. Here are frequent issues and how to avoid them:

• Missing or inconsistent totals: Net pay does not equal gross minus deductions, or YTD totals jump between periods.
• Mismatched fonts or alignment: Text in different fonts or misaligned columns can suggest manual editing.
• Rounded numbers: Payroll math rarely produces exact whole numbers; perfectly round figures can trigger questions.
• Unrealistic deductions: Missing tax or social contributions at pay levels where they would be expected. In Canada, income tax, EI and CPP are mandatory.
• Missing employer details: No company name, address or tax ID, or an employer that cannot be found online.
• Metadata anomalies: PDF properties show creation in a graphics app or timestamps that do not match pay dates.
• Cropped or blurred scans: Cut‑off columns or fuzzy text impede verification and raise suspicion.
• No corresponding bank deposits: Stub amounts do not match bank entries or are missing entirely.

How to mitigate: Re‑download stubs from the payroll portal if possible. Use OCR to improve searchability and add a cover note explaining unusual items such as benefit repayments or retroactive pay. If a number is wrong, ask your employer or payroll provider for a corrected copy. For formatting problems, we can fix legibility while preserving authenticity.

Where can you find official resources and further reading?

Summary: Government sites provide authoritative guidance on payslips and tax forms. Our articles offer practical tips on packaging and presentation.

Start with these official sources:

• UK payslip rights (GOV.UK) – what must appear on a payslip.
• UK payslips guidance (Acas) – gross pay, net pay and deduction requirements.
• Canadian pay stub deductions (GetSmarterAboutMoney) – gross and net pay, required deductions and CPP/EI contributions.
• Canada Revenue Agency – T4 slip information – what the T4 reports and employer duties.
• CFPB – Loan Estimate documentation rules – when lenders can request pay stubs.

For deeper dives, explore our related posts:

• Pay stub vs bank statement: which is better for proof of income?
• How to create legal pay stubs when you’re self‑employed
• Pay stub formatting mistakes that trigger rejections (and how to fix them)

Need help putting everything together? Explore our proof of income editing and bank statement formatting services, review our pricing, learn about our process, or contact our team.

Frequently asked questions

Summary: These answers cover the most common issues we see when people read and submit pay stubs.

How do I read a pay stub step by step?

Start at the top: confirm your name and employer information. Next, find the pay period dates and the pay date. Locate your gross pay—the amount before deductions—followed by itemized deductions such as income tax, National Insurance or EI/CPP. Finally, confirm the net pay, which equals gross pay minus deductions. Many stubs include year‑to‑date totals for earnings and taxes so you can track progress over the year.

Are pay stubs required everywhere?

Requirements vary. In the US, there is no federal rule mandating pay stubs, though most states require employers to provide them. In the UK, employers must give an itemized payslip showing earnings, deductions and hours. In Canada, employers must provide a pay statement and report income and deductions on a T4 slip.

What if I’m self‑employed—how do I prove income?

Self‑employed individuals do not receive traditional pay stubs. Instead, prepare an earnings summary that consolidates invoices and matches them to deposits in your bank statements. Supporting documents may include 1099‑NEC/1099‑K forms, Schedule C or T2125, and a Notice of Assessment or tax return. Our guide to legal self‑employed pay stubs shows how to assemble these materials without fabricating numbers. Every figure must trace back to a real invoice and deposit.

How many pay stubs do lenders typically request?

Most landlords and auto lenders ask for two to six recent stubs. Car lenders often want at least three months of history, especially for weekly pay cycles. Mortgage underwriters may request more, along with W‑2s or T4s and bank statements. Always check your lender’s list and provide any additional documents they request.

How long should I keep my pay stubs?

Keep pay stubs until you reconcile them with annual tax forms. In the US, many people keep them for at least one year—until the W‑2 or 1099 arrives. In Canada and the UK, two to three years is prudent in case of tax audits or benefit disputes. Digital copies are fine if they are complete and legible.

About the author: This article was written by the FinancialDocsProvider.com editorial team, a group of compliance‑focused professionals who specialize in formatting pay stubs, bank statements and other financial documents for renters, loan applicants and small‑business owners. We combine expertise in US, UK and Canadian regulations to help clients submit accurate, reviewer‑friendly packets. Learn more about our process and team.