Introduction
As we move into 2025, more employers are choosing electronic pay stubs, also known as e-pay stubs or e-stubs. These digital pay records offer convenience, cost savings, and easy access—but they also come with compliance considerations. This guide offers employers a clear roadmap to implementing e-pay stubs smoothly, securely, and legally.
What Are E-Pay Stubs?
E-pay stubs are digital versions of the traditional printed pay stub. They include all the same essential details—employee name, pay period, gross pay, deductions, net pay, and year-to-date (YTD) totals. The main difference is these are accessed online or via mobile app, eliminating paper distribution and improving accessibility for employees.
Top Benefits for Employers
Electronic pay stubs bring distinct advantages to payroll operations:
- Cost Savings: Reduces expenses on paper, printing, and postage.
- Efficiency: Speeds up payroll delivery and reduces manual effort.
- Accuracy: Minimizes errors with direct system generation and distribution.
- Security: Tightly controlled access and less risk of lost or misdirected stubs.
Legal and State Requirements
While there’s no federal mandate requiring paper stubs, many states have specific rules:
- Access States: Employers must give employees access to pay stubs electronically or in print (e.g., Illinois, Maryland).
- Opt-Out States: Employers may provide e-stubs but must allow employees to opt out and receive paper instead (e.g., Delaware, Minnesota, Oregon).
- Opt-In States: Employers must provide paper stubs unless the employee consents to electronic delivery (e.g., Hawaii).
Make sure to review pay stub rules specific to your state before switching to e-stubs.
Best Practices for Secure Delivery
When rolling out e-pay stubs, follow these steps to ensure safe and compliant distribution:
- Verify employee consent for electronic delivery if required.
- Use secure employee portals or payroll systems with strong authentication.
- Offer printable or downloadable formats for convenience.
- Retain records for at least three years as required by federal payroll recordkeeping rules.
- Provide paper copies promptly if requested by an employee or when required by law.
Implementation Tips for Employers
To smoothly integrate e-pay stubs into your payroll workflow:
- Choose payroll software that supports e-stub generation and secure access.
- Train your team and employees on how to retrieve and store their electronic stubs.
- Set up clear communications about availability, viewing, and requesting printed copies.
- Ensure accessibility and provide alternative formats for employees as needed.
Provide Employee Support
Help employees adapt by offering:
- Step-by-step instructions or tutorials on accessing their e-stubs.
- Guidance on how to print or save digital copies for recordkeeping.
- Contact support information for troubleshooting access or login issues.
Want an E-Stub Example?
Comparing real formats helps your payroll team see how digital and printed versions align. You can generate a clean sample stub for training or review:
Generate a sample electronic pay stub or view layout models in our Regular Pay Stub guide.
Conclusion
Electronic pay stubs offer efficiency, security, and convenience, making them an excellent goal for modern payroll systems. By understanding your state’s rules, preparing for secure delivery, and empowering your team with knowledge, you can make your transition to e-stubs seamless and compliant. Here's to smarter, paperless payroll for 2025 and beyond.
