Your pay stub and W-2 both show income and taxes — but they serve very different purposes. Here's exactly how they differ and why both matter.
By ExpertPaystubs Editorial Team. Published 2026-02-01
Both documents show your earnings and tax withholdings. Both come from your employer. But a pay stub and a W-2 serve fundamentally different purposes. Understanding the difference matters for tax filing, loan applications, and financial planning.
Quick Comparison
| Feature | Pay Stub | W-2 |
|---|---|---|
| Frequency | Every pay period | Once per year (by Jan 31) |
| Purpose | Current period + YTD summary | Annual tax reporting |
| Used for | Proof of income, budgeting | Filing federal/state taxes |
| Issued by | Employer (each paycheck) | Employer (to you + IRS/SSA) |
| Legal requirement | Varies by state | Federal law (all employers) |
| Shows | Detailed deduction breakdown | Summary totals only |
What's on a Pay Stub (That's NOT on a W-2)
Pay stubs provide granular detail that W-2s summarize:
- Hourly rate and hours worked — W-2s only show total annual compensation
- Overtime breakdown — Hours, rate, and overtime premium
- Individual deduction details — Each pre-tax and post-tax deduction itemized
- Employer contributions — 401(k) match, health insurance subsidies
- PTO/vacation balances — Remaining leave time
- Net pay — Your actual take-home amount (W-2s don't show this)
What's on a W-2 (That's NOT on a Pay Stub)
W-2 forms contain information specifically needed for tax filing:
- Box 1: Wages, tips, other compensation (taxable federal income)
- Box 2: Federal income tax withheld
- Box 3: Social Security wages
- Box 4: Social Security tax withheld
- Box 5: Medicare wages and tips
- Box 6: Medicare tax withheld
- Box 12: Codes for retirement contributions, health coverage costs, etc.
- Box 13: Statutory employee, retirement plan, third-party sick pay checkboxes
- Box 16-17: State wages and state tax withheld
Why Your Last Pay Stub YTD Might Not Match Your W-2
This is a common source of confusion. Typical reasons for discrepancies:
- Pre-tax deductions: Your pay stub YTD gross includes all earnings, but W-2 Box 1 subtracts pre-tax deductions (401(k), health insurance premiums, HSA/FSA)
- Timing: If your last pay date falls in the next calendar year, YTD on your final stub may differ
- Imputed income: Employer-paid life insurance over $50,000 appears on your W-2 but may not show on pay stubs
- Tax-exempt benefits: Some fringe benefits are included in gross on stubs but excluded from W-2 taxable wages
The Formula
W-2 Box 1 = YTD Gross Pay - Pre-Tax Deductions (401k, health insurance, HSA, FSA, etc.)
When to Use Each Document
Use Your Pay Stub For:
- Apartment rental applications
- Auto loan pre-approval
- Proof of current employment
- Verifying a recent paycheck is correct
- Monthly budgeting
Use Your W-2 For:
- Filing your federal tax return
- Filing state tax returns
- Mortgage applications (lenders want 2 years of W-2s)
- Verifying annual income for financial aid (FAFSA)
- Social Security benefit calculations
What If You Don't Get Pay Stubs?
While the W-2 is federally mandated, pay stub requirements vary by state. Currently:
- States requiring pay stubs: CA, CO, CT, IA, ME, MA, MN, NH, NY, NC, TX, VT, WA, and others
- States with no requirement: AL, AR, FL, GA, LA, MS, OH, SD, TN
Even in states without requirements, most employers provide them. If yours doesn't, you can generate professional pay stubs yourself using ExpertPaystubs.
Generate Both Pay Stubs and Tax Forms
ExpertPaystubs provides professional-grade pay stub generation with automatic 2026 tax calculations for all 50 states. Need W-2 forms too? Check out our tax form generators.