Pay stub vs W-2: what each one shows and when you need both
A pay stub records one pay period with year-to-date totals. A W-2 is the employer's annual report of wages and withholding. Lenders, landlords and bookkeepers often ask for both because they answer different questions.
What is the difference between a pay stub and a W-2?
A pay stub is issued every pay date and shows what was earned and withheld in that period, with year-to-date totals. A W-2 is issued once a year and shows the totals for the whole calendar year, after pre-tax adjustments.
The stub is current and detailed. The W-2 is complete for a past year and has no pay-period detail. Where the two overlap, at the end of a year, they can be compared, and the difference is mostly explained by pre-tax deductions.
Pay stub and W-2 side by side
| Aspect | Pay stub | W-2 |
|---|---|---|
| What it covers | One pay period, plus year-to-date totals to that pay date | One calendar year of wages and withholding |
| Who issues it | The employer or its payroll provider, every pay date | The employer, once a year, generally by January 31 for the year before |
| Gross pay | Gross for the period and YTD gross, with earnings lines (regular, overtime, bonus) | Wages in Box 1, Box 3 and Box 5, each after different pre-tax adjustments |
| Pre-tax deductions | Listed line by line (retirement, health premiums, FSA/HSA) | Not listed. They are already taken out of Box 1, and Box 12 codes show some, such as 401(k) deferrals |
| Taxes withheld | Per period and YTD, by tax | Annual totals in Boxes 2, 4 and 6, plus state and local boxes |
| Current rate and recent pattern | Yes: rate, hours, overtime and the latest YTD | No. It stops at the end of the year it covers |
| Earlier full years | No | Yes: one W-2 per employer per year |
| Main limit | Only as current as the stub, and only the periods you have | Out of date for the current job, and one total per year with no pay-period detail |
When each one is used
The requester's checklist decides. These are the usual reasons behind it.
- Pay stubs
Current pay
The present rate and hours, recent overtime or bonuses, and year-to-date earnings. Used when the question is what the person earns now.
- W-2
Earlier years
What a full year looked like, per employer. Used when the question is whether the current pay fits the history.
- Both
Consistency
Prior-year totals next to this year's pace. Used to see whether the picture hangs together before a decision.
How to compare a year-end stub with a W-2
Do this when the stub package includes the last pay date of a year and the W-2 for that year.
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Take the last stub of that year
By pay date, not by period end. Read its YTD gross. If the final December stub is not in the stack, the comparison can only be approximate.
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Find the W-2 boxes
Box 1 (wages, tips, other compensation), Box 3 (Social Security wages), Box 5 (Medicare wages) and Box 12 (codes such as D for 401(k) deferrals).
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Subtract the pre-tax lines from the stub's YTD gross
Take off year-to-date 401(k) deferrals and pre-tax benefits such as health premiums and FSA contributions. The result should be close to Box 1.
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Explain what is left
A remaining gap is usually pay dated in a different year, a fringe benefit on the W-2 only, a corrected W-2 or a missing stub. Ask the employer if it stays unexplained.
Cross-checking a stub against a W-2: by hand, generic OCR, VerifyStub
Which side of the comparison each approach handles.
| What you need | By hand | Generic OCR | VerifyStub |
|---|---|---|---|
| Reading the stub side | Read and key in each stub | Raw figures, unchecked | Read into a row per stub, with YTD gross as of the last stub |
| Reading the W-2 side | Read Boxes 1, 3, 5 and 12 by eye | Possible with a generic OCR, unchecked | Not read. Compare the W-2 by hand using the steps above |
| Arithmetic on the stubs | If you build it | None | Net-pay math and the YTD chain on every stub |
| Gap between stub YTD and W-2 | Explained from memory | No | You see the stub-side YTD figure; explaining the gap is a manual step |
Scope. VerifyStub checks arithmetic on pay stubs. It does not read W-2s, does not detect altered documents and does not verify employment or income.
Pay stub vs W-2: common questions
Is a pay stub enough to document income?
That depends on who is asking. Many lenders and landlords ask for recent pay stubs together with other documents, and the requester's checklist decides. VerifyStub checks that the numbers on stubs are consistent with each other. It does not verify employment or income.
Why do lenders and landlords often ask for both?
They show different things. Stubs show the current rate, recent pay and year-to-date totals. A W-2 shows what a full earlier year looked like. Together they show whether the current pay is in line with the history.
Why is Box 1 on my W-2 lower than the YTD gross on my last stub?
Box 1 is taxable wages after pre-tax adjustments. Pre-tax retirement contributions such as 401(k) deferrals and pre-tax benefits under a cafeteria plan, such as health premiums and FSA contributions, are taken out of Box 1 but are still part of gross pay on the stub.
How do Box 3 and Box 5 compare with stub gross?
Box 5 (Medicare wages) usually equals gross pay less cafeteria-plan benefits, so it includes 401(k) deferrals and is usually higher than Box 1. Box 3 (Social Security wages) is similar to Box 5 but stops at the Social Security wage base for the year. The details depend on the employer's plans, so use them as a guide, not a rule.
Can a W-2 replace pay stubs for my current job?
Usually not. A W-2 ends at the last day of the year it covers, so it cannot show the current pay rate or this year's earnings to date. Whether a requester accepts a W-2 alone is up to the requester.
The year-end stub and the W-2 do not match. What now?
First list the pre-tax items on the stub (retirement, health, FSA) and subtract them from YTD gross to approximate Box 1. If a gap remains, common causes are pay dated in a different calendar year than the pay period, taxable fringe benefits shown only on the W-2, a corrected W-2, or a stub that is not the last of the year. Ask the employer if it is still unexplained.
Does VerifyStub read W-2s?
No. It reads pay stubs. A W-2 uploaded to it will most likely be rejected with a message that no pay stub figures were found.
How many stubs are usually requested?
It varies. A common request is the most recent consecutive stubs covering about a month or two, but checklists differ by lender, loan program and landlord. Follow the list you were given, and use the YTD chain check to confirm the set is complete.
What about self-employed workers and 1099 income?
They do not receive pay stubs, so this tool does not apply. Other documents, such as tax returns and 1099s, are used instead, and they are outside what this site reads.
Does a matching W-2 prove the stubs are real?
No. Matching figures are consistent, which is reassuring, but consistency is not verification. Confirming employment and income directly with the employer or through an approved verification service is a different step.
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