What is the purpose of a paycheck stub?

A paycheck stub serves as a critical record for employees, detailing the payments they receive from their employers. It itemizes the gross pay, which is the total earnings before any deductions, and provides transparency about various withholdings, such as federal taxes, state taxes, Social Security, Medicare, and any other deductions like health insurance or retirement contributions. This documentation is essential for employees as it allows them to track their earnings and understand how much money is taken out for different purposes, supporting effective personal financial management.

The other options do not accurately represent the primary function of a paycheck stub. Options related to issuing funds for bonuses, managing tax filings, or applying for loans may involve financial processes, but they do not pertain directly to the specific purpose of a paycheck stub, which is fundamentally to provide a comprehensive record of what employees are paid and the deductions taken from their earnings.