Paychecks

A paycheck is a payment instrument that an employer uses to compensate an employee for work performed during a specific pay period. Traditionally, paychecks were issued as physical paper checks that were delivered to employees or mailed to their homes. The term “paycheck” can also refer more broadly to the wages an employee earns, regardless of how the payment is made.

A paycheck consists of two components: the actual payment (the check itself) and a detailed pay statement, also called a pay stub or wage statement. The pay statement shows how the employee’s pay was calculated. Most states’ laws regulate the items that must appear on the pay statement, such as employee’s name, employer’s name and address, pay period start and end dates, payment date, gross and net pay, itemized deductions, pay rates and number of hours worked, and year-to-date totals for earnings and taxes.

Paycheck Statistics

Employees will likely be paid by check or direct deposit. In most states, an employer must make arrangements with a bank where an employee can cash their paycheck for face value.

The following data comes from the Payroll Industry Report – Results of PayrollOrg’s Survey of Salaries & the Payroll Profession, August 2025.

On average, 4.2% of payroll is delivered by paper paycheck, while 94.2% is delivered by direct deposit.

The median number of paychecks, direct deposits of pay, and/or paycard transactions processed by payroll staff in 2024 was 20,000.

For pay statements, on average, 7.5% are delivered by paper, while 78.1% are delivered by self-service posting, and 10.8% are delivered by email.