About This Tool

Generate professional, detailed paystubs for accurate payroll record-keeping. This free paystub generator helps employers create compliant pay stubs that document wages, deductions, and year-to-date earnings for their employees. Whether you run a small business, manage payroll for contractors, or need to document payments for independent workers, this tool creates professional pay stubs with all required information including gross pay, federal and state tax withholdings, Social Security, Medicare, and optional deductions like 401(k) contributions and health insurance. The tool automatically calculates tax withholdings based on current rates and provides a real-time preview of the paystub before generating a downloadable PDF.

What is a Paystub and Why It Matters

A paystub (also called a pay stub, paycheck stub, or payslip) is a document that accompanies a paycheck and provides detailed information about an employee's earnings and deductions for a specific pay period. Even in the era of direct deposit, paystubs remain essential legal documents that serve multiple critical purposes:

• Legal compliance: Most states require employers to provide paystubs to employees. Even in states where they're not mandatory, providing paystubs is a best practice that protects both employer and employee.
• Transparency: Paystubs show employees exactly how their gross pay is calculated and what deductions are taken, preventing confusion and disputes about compensation.
• Tax documentation: Employees need paystubs to verify income when filing taxes, especially if their W-2 contains errors or if they need to file quarterly estimated taxes.
• Proof of income: Landlords, mortgage lenders, auto loan providers, and government agencies often require recent paystubs to verify employment and income levels.
• Benefits verification: Paystubs document deductions for benefits like health insurance, retirement contributions, and flexible spending accounts.
• Dispute resolution: If there's ever a question about payment, overtime calculation, or withholdings, paystubs provide the documentation needed to resolve the issue.

For employers, maintaining accurate paystub records is not just good practice. It's often legally required and essential for defending against wage claims, unemployment disputes, and tax audits. The Department of Labor recommends keeping payroll records for at least three years.

Legal Requirements by State

Paystub requirements vary significantly by state. Understanding your state's rules is crucial for compliance:

Access States (Majority): Most states require employers to provide paystubs but allow electronic delivery with employee consent. Employees must be able to access and print their paystubs easily.

Access/Print States: California, Colorado, Connecticut, Hawaii, Iowa, Maine, Massachusetts, New Mexico, North Carolina, Texas, and Vermont require employers to provide paystubs in a format employees can print, even if delivered electronically.

No Requirement States: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, and Tennessee don't legally require paystubs, but providing them is still strongly recommended.

Opt-In States: Some states require employers to get written consent before switching from paper to electronic paystubs.

Required Information: Most states that mandate paystubs require them to include:

• Employer name, address, and identification number (EIN)
• Employee name and sometimes last 4 digits of SSN
• Pay period dates (start and end)
• Payment date
• Hours worked (for non-exempt employees)
• Rate of pay
• Gross wages earned
• All deductions (with itemization)
• Net pay (take-home amount)
• Year-to-date totals for earnings and deductions

California and New York have particularly strict requirements. California requires sick leave balances on paystubs, while New York mandates detailed rate breakdowns for employees with multiple pay rates. Always check your specific state requirements or consult with a payroll professional.

Understanding Deductions and Withholdings

The difference between gross pay and net pay can be substantial. Here's what gets withheld and why:

Mandatory Federal Deductions:

• Federal Income Tax: Withheld based on the employee's W-4 form. Rates range from 10% to 37% depending on income bracket. Our tool estimates at 22% (typical for middle-income workers).
• Social Security (FICA): 6.2% of gross pay up to the annual wage base limit ($168,600 for 2024). This funds retirement and disability benefits.
• Medicare: 1.45% of all gross pay with no income limit. High earners (over $200,000 single, $250,000 married) pay an additional 0.9% Medicare surtax.

State and Local Taxes:

• State Income Tax: Rates vary by state from 0% (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) to over 13% (California top bracket). Our tool includes approximate rates for all 50 states.
• Local Taxes: Some cities and counties impose additional income taxes (e.g., New York City, Philadelphia, San Francisco).
• State Disability Insurance: California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico require SDI contributions.

Voluntary Deductions:

• 401(k)/403(b) Contributions: Pre-tax retirement contributions reduce taxable income. 2024 limit is $23,000 ($30,500 for age 50+).
• Health Insurance Premiums: Usually pre-tax, reducing both income tax and FICA obligations.
• HSA/FSA Contributions: Pre-tax health savings accounts and flexible spending accounts.
• Life/Disability Insurance: May be pre-tax or post-tax depending on the plan.
• Union Dues: Post-tax deductions for union membership.
• Wage Garnishments: Court-ordered deductions for child support, tax liens, or creditor judgments.

Understanding these deductions helps employees verify their paystubs are accurate and helps employers ensure compliance with tax laws.

Tax Calculations Explained

Our paystub generator uses approximate tax rates for estimation purposes. Here's how we calculate each component:

Federal Income Tax (22% default):

We use 22% as a reasonable estimate for middle-income earners. The actual withholding depends on:

• Filing status (single, married, head of household)
• Number of allowances claimed on W-4
• Additional withholding requests
• Annual income level

For precise calculations, employers should use IRS Publication 15-T (Federal Income Tax Withholding Methods) or payroll software that implements the current year's tax tables.

Social Security (6.2%):

This is a flat rate applied to all wages up to the annual wage base ($168,600 in 2024). Once an employee earns above this threshold, no further Social Security tax is withheld for that year. Self-employed individuals pay both the employee and employer portions (12.4% total).

Medicare (1.45%):

Unlike Social Security, Medicare tax applies to all wages with no upper limit. High earners pay an additional 0.9% on wages over $200,000 (single) or $250,000 (married filing jointly). This Additional Medicare Tax is withheld by employers but has no employer match.

State Income Tax (varies by state):

Our tool includes estimated state tax rates for all 50 states:

• No income tax: AK, FL, NV, SD, TN, TX, WA, WY (0%)
• Low tax states: ND (2.9%), PA (3.07%), IN (3.23%)
• Moderate tax states: CO (4.4%), IL (4.95%), NC (4.99%)
• High tax states: CA (9.3% base), OR (9.0%), NY (6.85% base)

Note that actual state tax withholding depends on income level, filing status, and state-specific allowances. Some states have flat rates while others have progressive brackets. California's top marginal rate exceeds 13% for high earners.

Important Disclaimer: The tax calculations in this tool are estimates based on typical scenarios. Actual withholding amounts should be calculated using IRS and state tax tables, considering the employee's specific W-4 elections, exemptions, and credits. For payroll processing, use certified payroll software or consult a payroll service provider.

Paystub Best Practices for Employers

Creating accurate, compliant paystubs protects your business and builds trust with employees:

Accuracy is Critical:

• Double-check all calculations before issuing paystubs. Errors erode trust and can lead to legal issues.
• Verify hours worked against timekeeping records, especially for non-exempt employees.
• Ensure overtime is calculated correctly (1.5x regular rate for hours over 40 per week under FLSA).
• Update tax rates annually when IRS and state agencies release new withholding tables.

Maintain Consistent Formatting:

• Use the same paystub template for all employees to reduce confusion.
• Clearly label all earnings and deductions with recognizable names.
• Include both current period and year-to-date amounts for all line items.
• Use consistent terminology (don't switch between "health insurance" and "medical" across different paystubs).

Secure Distribution:

• Paystubs contain sensitive information (SSN, address, income). Deliver them securely.
• For electronic paystubs, use encrypted email or a secure employee portal.
• For paper paystubs, use sealed envelopes and never leave them in open areas.
• Ensure employees can access old paystubs by maintaining an archive for at least 3 years (7 years recommended).

Address Questions Promptly:

• Encourage employees to review paystubs and ask questions about anything unclear.
• Train managers and HR staff to explain deductions, tax withholdings, and benefits.
• Correct any errors immediately and provide a corrected paystub with clear notation of the correction.

Stay Compliant:

• Review your state's paystub requirements annually because laws change.
• If operating in multiple states, follow each state's specific rules for employees working in that state.
• Include all required information even if your state doesn't mandate paystubs. Better to over-document than under-document.
• Consider using certified payroll software for businesses with more than 10 employees because manual calculations become error-prone at scale.

Common Paystub Mistakes to Avoid

These frequent errors can lead to employee complaints, tax penalties, and legal issues:

1. Incorrect Overtime Calculations:

Overtime must be paid at 1.5x the regular rate for hours over 40 in a workweek (under FLSA). Common mistakes include calculating overtime based on pay periods instead of workweeks, forgetting to include non-discretionary bonuses in the regular rate calculation, or misclassifying employees as exempt when they should receive overtime.

2. Missing or Incorrect Year-to-Date Totals:

YTD amounts must be cumulative and accurate. Employees use these figures to verify their W-2 at year-end. Errors here create major reconciliation headaches in January. Always verify YTD totals match the sum of all previous paystubs plus the current period.

3. Vague Deduction Descriptions:

Don't use abbreviations or codes employees won't understand. "Med Ins" could mean medical insurance or Medicare. Be explicit: "Health Insurance Premium" or "Medicare Tax (1.45%)". Unclear deductions lead to unnecessary questions and erode trust.

4. Not Updating Tax Rates:

Federal and state tax withholding tables change annually. Using outdated rates means employees either get surprise tax bills or overpay and wait for refunds. Subscribe to IRS and state revenue department updates to stay current.

5. Ignoring State-Specific Requirements:

California requires sick leave balances. New York requires rate breakdowns for multiple pay rates. Massachusetts requires a specific format for earned sick time. One paystub template doesn't work for all 50 states. Verify your state's unique requirements.

6. Failing to Provide Paystubs on Time:

Paystubs should be provided on or before payday. Late paystubs create anxiety for employees who need to verify their deposit amount or who require proof of income for time-sensitive applications.

7. Inconsistent Pay Period Dates:

Pay periods should be consistent and clearly defined. If you say pay periods run Monday-Sunday, don't have one that runs Tuesday-Monday. Inconsistency makes it difficult for employees to track hours and for you to stay compliant with overtime laws.

8. Rounding Errors:

Always calculate to at least two decimal places and round at the final step, not intermediate steps. Rounding too early can create cumulative errors that show up in YTD totals.

Frequently Asked Questions