What is a paystub?
A paystub (also called a payslip) is a document that shows how an employee’s gross pay turns into net pay. It lists hours worked, pay rate, gross earnings, taxes, deductions (like insurance or retirement), and the final take-home pay. Employers give it each pay period; freelancers may generate one to document income for loans or rentals.
Why would I need to create a paystub?
You might need to create a paystub to verify income for a mortgage or apartment, keep accurate payroll records, prepare taxes, or communicate deductions clearly to staff. Lenders and landlords commonly ask for recent paystubs because they show predictable earnings and withholdings.
Is it legal to create my own paystub?
Yes—if the information is true. Employers must provide accurate pay details and follow local laws. If you’re self-employed or a contractor, you can generate a paystub for documentation, but it’s not a substitute for official tax forms. Falsifying income on a paystub is illegal and can lead to serious penalties.
What information do I need before I create a paystub?
Gather:
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Employer name, address, and (if applicable) EIN
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Employee/contractor name and address
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Pay period dates and pay date
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Pay type (hourly, salary, commission) and rate
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Hours worked or salary amount
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Pre-tax and post-tax deductions (benefits, retirement, wage garnishments)
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Taxes: federal, state/province, local, and payroll taxes as applicable
Hourly vs. salary: how does the paystub differ?
Hourly paystubs show regular hours, overtime, and sometimes double time with separate rates.
Salary paystubs show the per-period portion of the annual salary. Both should show YTD (year-to-date) totals for earnings, taxes, and deductions.
How do I actually create a paystub step by step?
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Define the pay period (e.g., Aug 1–Aug 15) and pay date.
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Enter employee and employer details.
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Add earnings: hourly hours × rate, salary portion, bonuses/commissions.
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Calculate taxes and withholdings (federal/state/local, Social Security/Medicare or regional equivalents).
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Add pre-tax deductions (health, HSA, retirement) and post-tax deductions (loan repayments, union dues).
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Show net pay (gross − taxes − deductions).
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Display YTD totals for transparency.
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Save as PDF and securely share or print.
A trusted generator can automate steps 3–7.
Can I use a paystub generator to create a paystub?
Absolutely. A reliable paystub generator calculates taxes, formats the document, and produces a neat PDF in minutes. Look for:
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Up-to-date tax logic for your location
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Support for overtime, bonuses, and deductions
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Editable company/employer fields
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YTD tracking
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Secure file delivery and receipt
What common mistakes should I avoid?
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Wrong pay dates that don’t match your payroll cycle
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Missing YTD totals, which lenders often check
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Incorrect tax region (state/province or local)
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Forgetting overtime multipliers
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Typos in names/EIN or mis-keyed rates
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Using round numbers everywhere—real paystubs often have cents and precise withholdings
How are taxes calculated on a paystub?
Calculations depend on your country and region. Generally:
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Income taxes depend on taxable wages and allowances.
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Payroll taxes (e.g., Social Security/Medicare or regional equivalents) are applied up to wage bases.
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Pre-tax deductions reduce taxable income; post-tax do not.
A generator simplifies this, but you should still review the numbers for reasonableness.
What should a professional paystub include?
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Employer & employee info
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Pay period & pay date
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Earnings detail (regular, overtime, bonuses)
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Taxes broken out by type
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Deductions (pre- and post-tax)
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Net pay for the period
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YTD totals for each category
Can freelancers or gig workers create a paystub?
Yes, you can create a paystub to document income for applications, but also keep invoices, bank statements, and 1099s (or local equivalents). Lenders may ask for multiple documents—don’t rely solely on self-generated stubs.
How often should I generate paystubs?
Match your payroll cycle: weekly, bi-weekly, semi-monthly, or monthly. Consistency builds a reliable earnings history.
What if I made a mistake—can I correct a paystub?
Yes. Issue a corrected paystub with a clear note (e.g., “Reissued – corrected overtime hours”). Update YTD figures. Keep a record of both versions for audit trails.
Are there different rules by state or country?
Definitely. Minimum wage, overtime rules, required fields, and record-keeping windows vary. Some regions mandate that employers provide paystubs; others specify which items must appear. When you create a paystub, pick settings for the correct jurisdiction and stay current with local laws.
How should I store and share paystubs?
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Save PDFs in a secure drive with restricted access.
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Use password-protected files if you email them.
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Back up regularly and follow your company’s data-retention policy.
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Never post sensitive pay data in public channels.
How many paystubs do lenders usually ask for?
Commonly two to three recent paystubs, plus bank statements and, sometimes, W-2s/T4s or tax returns. Requirements vary by lender and loan type.
Can a paystub help with budgeting?
Yes. Paystubs show your actual take-home pay after deductions. Reviewing them helps you plan bills, savings, and understand benefit costs.
What’s the fastest way to create a paystub for a new hire?
Use a generator with templates. Enter new-hire details once, set the pay schedule, and let it auto-calculate taxes and YTD from the first run. Save the template to reuse each period.
Final tips before you create a paystub
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Double-check pay period dates and hours
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Confirm the correct tax region and current rates
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Include YTD totals
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Keep a consistent layout and file naming scheme
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Review totals against your payroll register
Quick Summary: To create a paystub, collect accurate employer/employee details, earnings, taxes, and deductions; use a trusted generator to calculate and format; include YTD totals; and store the PDF securely. Accuracy and local compliance are key. Generate free paystub now!