Pay Stub vs W-2 What Small Businesses and Employees Need to Know in 2025
Understanding the differences ensures you know which document to use for banking, renting an apartment, applying for benefits, or filing taxes. Pay stubs give detailed, ongoing proof of income, while a W-2 provides year-end totals for the IRS and state agencies.
For official guidance, visit the IRS W-2 page or the Department of Labor – Pay Stub Information.
Also check our Regular Pay Stub Guide for examples.
Quick Comparison Table: Pay Stub vs W-2
| Feature | Pay Stub | W-2 |
|---|---|---|
| Purpose | Per-pay-period breakdown of hours, earnings, taxes, and deductions | Annual summary of taxable wages and withholdings for tax filing |
| Timing | Issued each pay period (weekly, biweekly, monthly) | Issued once per year for the prior tax year |
| Scope | Shows current period and year-to-date totals | Shows year-end totals only |
| Who Issues | Employer (via payroll or HR portal) | Employer (copies sent to employee and tax agencies) |
| Uses | Proof of income for rentals, loans, or verifying hours | Filing federal and state income tax returns |
Learn more in our Understanding Pay Stubs Guide and Reading W-2 Forms Guide.
What a Pay Stub Shows
- Employee and employer names
- Pay period start and end dates
- Hours worked (regular, overtime, PTO) and pay rates
- Gross pay, deductions, and taxable wages
- Withheld federal, state, and local taxes
- Net pay and year-to-date (YTD) totals
A pay stub is issued each pay cycle, perfect for verifying recent income or contributions. Use our Pay Stub Generator to create accurate stubs for personal recordkeeping.
What a W-2 Shows
- Employer’s name, address, and EIN
- Employee’s name, address, and SSN
- Total annual wages, tips, and compensation
- Federal income tax withheld
- Social Security and Medicare wages and withholdings
- State and local tax details
- Special informational codes (retirement plans, dependent care, etc.)
The W-2 is primarily for tax purposes. For more info, see the IRS W-2 guide.
When to Use Each Document
Use a Pay Stub When:
- You need recent proof of income for rentals, loans, or benefits
- You want to check deductions, overtime, or hours worked
- You are reconciling payroll discrepancies mid-year
Use a W-2 When:
- You file federal and state income taxes each year (IRS Filing Info)
- You need an annual wage summary for financial aid or auditing
- You must confirm official totals with the IRS and SSA
Employees vs. Contractors
Employees receive pay stubs each pay period and a W-2 at year-end. Contractors usually submit invoices and may receive a 1099-NEC. Contractors can create pay stubs for records, but they do not replace official tax documents. See Pay Stubs for Contractors.
How to Get Your Documents
Pay Stubs
- Download PDFs from your payroll or self-service portal.
- If lost, request copies from HR or payroll staff.
- Create your own using our Pay Stub Generator.
W-2 Forms
- Employers issue W-2s annually in January for the prior year.
- If missing, request a reissue from payroll or HR.
- For prior years, request transcripts from the IRS.
Common Mistakes to Avoid
- Using a single pay stub as proof of annual income
- Not reconciling YTD totals with W-2 before filing taxes
- Mixing employee and contractor forms
Best Practices for Record-Keeping
- Download and securely store each pay stub throughout the year
- Keep your annual W-2 with tax return documents
- Reconcile pay stub YTD totals against W-2 totals each year
See examples in our Regular Pay Stub Guide or generate stubs with our Pay Stub Generator.
FAQ: Pay Stub vs W-2
Is a pay stub the same as a W-2?
No. A pay stub is issued per pay cycle, while a W-2 is issued annually for taxes. Learn more on the IRS site.
Can I file taxes with only pay stubs?
No. Pay stubs are estimates; W-2 totals are required by the IRS.
What if my W-2 does not match my pay stub totals?
Contact payroll and request a corrected W-2c. See IRS Topic 154 for guidance.
Conclusion
The choice of pay stub vs W-2 comes down to purpose: pay stubs show detailed earnings per period, while W-2s provide official year-end totals for taxes. Both are essential payroll documents.
Stay organized with our Pay Stub Generator and check examples in the Regular Pay Stub Guide to make loan applications, audits, and tax season stress-free.
