A pay statement (often referred to as a pay stub) is the form you receive each pay period you work. The pay statement should confirm your gross income amount over the pay period, and lists any deductions your employer holds back for taxes and insurance, etc. to result in the “Net Pay” that you receive. The pay statement also includes Year To Date (YTD) amounts for your gross pay and deductions taken.
For a pay statement to be acceptable to a lender, it must show
- employer name or logo (usually in the header or footer area)
- the client name
- a clear breakdown of your gross pay for the period (including hours if your position is hourly), deductions and net pay
- your Year To Date (YTD) amounts.
Here is an example of a typical pay statement from an employer that uses a 3rd party payroll services provider (ADP, Ceridian, etc):
Here is another example of a Pay Statement issued by a company that uses an internal accounting/payroll software (Simply Accounting) to issue printed cheques:
DND personnel receive slightly different pay statements (a mid month and an end of month statement). At the beginning of the month you receive a ‘mid month’ statement that shows your full monthly salary, all deductions, the amount to be deposited at mid month, and then a holding amount which will be deposited at the end of the month. For DND clients, the lender will want the MID MONTH statement, which looks like this: