Payroll checks: layouts, stubs and what employees need to see

What is a payroll check?

A payroll check is a paycheck issued to an employee from the business's bank account, printed by payroll or accounting software. Many employers who pay by paper check use a voucher layout: one check and one or two stubs on a letter size sheet. The employee keeps one stub as their earnings statement, and the employer files the other.

Payroll checks are ordinary business checks as far as the bank is concerned. The payroll part is the stub content and the controls around how checks are printed, signed and delivered.

What should a payroll check stub show?

The content comes from your payroll software, but you choose the layout that gives it room. These are the items payroll stubs commonly carry.

Which items are required depends on your state. Some states list specific fields, and some allow electronic statements instead of paper. Check your state labor department's wage statement rules and confirm that your software prints each required item.

Is a pay stub required by law?

Not under federal law. The US Department of Labor states that the Fair Labor Standards Act requires employers to keep accurate records of hours worked and wages paid, but does not require them to give employees pay stubs. State law is where stub requirements live, and they vary in which items are listed and whether employees can receive statements electronically.

Federal rules still shape how you pay. Under 29 CFR 531.27, wages owed under the minimum wage and overtime sections of the Act must be paid in cash or a negotiable instrument payable at par. In practice, that means a funded account and a check the employee can cash for its full face amount.

Which check layout works best for payroll?

A voucher layout gives the earnings statement enough room. The check can sit on the top, middle or bottom panel, and your payroll software decides which it expects.

Confirm the layout in print setup before ordering. Our guide to check on top, middle or bottom walks through the choice, and the stub format itself is covered in voucher checks and detachable stubs.

Should you pay by direct deposit or paper check?

Many employers offer both, and some employees prefer paper. Direct deposit removes printing, envelopes and lost checks, while paper checks work for employees without a bank account or who want a physical record. Whether you can require direct deposit is a state law question, and rules differ, so check with your state labor department before making it mandatory.

Keep a small supply of payroll checks even if most staff use direct deposit. You will need them for final pay, corrections and employees who have not set up their deposit yet.

How do you keep payroll checks secure?

Paychecks follow a predictable schedule and amount, which makes them an easy target. A few controls reduce the risk.

• Use a separate bank account for payroll, funded only with each run's total.
• Ask your bank about positive pay and upload each payroll run's issue file.
• Print on check stock with security features such as chemically reactive paper and toner adhesion.
• Lock unused payroll stock and log the check numbers used and voided.
• Separate duties: the person who runs payroll should not reconcile the payroll account alone.
• Hand checks to employees directly or mail them in security tinted window envelopes.

A separate payroll account limits the damage if a check is altered or copied, since the account holds only what the current run needs. Positive pay adds a second check at the bank: presented items that do not match your issue file are flagged for you to approve or return. Our guide to positive pay explains the service.

What do you do if a paycheck is lost or stolen?

Act quickly. Ask your bank to place a stop payment on the check number, confirm the check has not already cleared, then issue a replacement with a new number and record the original as void. Our guide to lost or stolen checks covers the full checklist, including when to file a report.

How long should you keep payroll records?

The IRS says employers should keep all records of employment taxes for at least four years after filing the fourth quarter return for the year. That includes wage payment amounts and dates, employee names, addresses and Social Security numbers, and records of tax deposits. File your copy of each stub with the payroll register, and keep voided checks with the run they belong to. State rules on wage record retention may differ, so confirm yours.

What should you check before each payroll run?

• Payroll account is funded for the full net pay total.
• Correct check stock loaded, layout matching the software.
• Starting check number matches the first sheet in the tray.
• Test page aligned on plain paper if the printer or stock changed.
• Stub shows every item your state requires.
• Issue file uploaded to the bank if you use positive pay.
• Voided or misprinted checks marked VOID and recorded.

Voqado laser business checks start at $34.99 for 50 and include a payroll layout for voucher printing. Bank details go through a protected form and a production proof is prepared before printing. For the broader format choice, see laser checks vs wallet checks.