A pay stub — also called a payslip, earnings statement, or pay advice — is the document that breaks down exactly how an employee's gross pay becomes their take-home pay. It shows every dollar earned and every dollar deducted, period by period and year-to-date.
If you're self-employed or run your own business, you may not receive pay stubs automatically. But you still need them — for rental applications, mortgage pre-approvals, loan paperwork, or simply keeping clean financial records. The good news: generating one is free and takes about two minutes when you use the right tool.
What is a pay stub?
A pay stub is a document — physical or digital — that accompanies a paycheck and itemizes how that paycheck was calculated. It shows gross earnings (what you earned before anything was taken out), all deductions (taxes, benefits, retirement contributions), and net pay (what actually lands in your bank account).
Employers in most US states are legally required to provide pay stubs. For the self-employed, there's no automatic requirement — but banks, landlords, and lenders routinely ask for them as proof of income.
Who actually needs a pay stub?
The short answer: almost everyone at some point. Here's who reaches for one most often:
What a pay stub must include
Different states and countries have different legal requirements, but a complete, professional pay stub should always contain the following fields. Missing any of the required ones can cause your stub to be rejected by a lender or landlord.
| Field | Required | Notes |
|---|---|---|
| Employer name & address | ✓ | Legal business name, not just a trade name |
| Employee name & address | ✓ | Must match payroll records exactly |
| Employee ID / SSN (last 4) | — | SSN last 4 only — never print the full number |
| Pay period (start & end dates) | ✓ | E.g. Jul 1 – Jul 15, 2026 |
| Pay date | ✓ | The date the payment was or will be issued |
| Pay frequency | ✓ | Weekly, bi-weekly, semi-monthly, or monthly |
| Gross earnings | ✓ | Total before any deductions |
| Regular hours & rate | ✓ | For hourly workers — rate × hours |
| Overtime hours & rate | — | 1.5× regular rate for hours over 40/week (US) |
| Bonus / commission | — | Listed separately from regular earnings |
| Federal income tax withheld | ✓ | Based on W-4 filing status and bracket |
| State / provincial tax withheld | ✓ | Varies by state/province — some states have none |
| Social Security (FICA) | ✓ | 6.2% up to the annual wage base (US) |
| Medicare (FICA) | ✓ | 1.45% — plus 0.9% above $200K (US) |
| Pre-tax deductions | — | 401(k), health insurance premium, FSA/HSA |
| Post-tax deductions | — | Garnishments, after-tax benefits |
| Net pay | ✓ | Take-home after all deductions |
| YTD gross & YTD net | ✓ | Year-to-date running totals |
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Stubingly fills all of these fields automatically
Enter your details once. Every field above is calculated and formatted correctly.
W-2 employees vs 1099 contractors: what's different on a pay stub?
The biggest difference between a W-2 employee stub and a 1099 contractor stub is the tax section. Employees have taxes withheld for them; contractors are responsible for paying their own.
W-2 Employee
- Employer withholds income tax automatically
- Employer pays half of Social Security & Medicare (6.2% + 1.45%)
- Eligible for unemployment insurance
- Usually entitled to benefits (health, 401k)
- Pay stub shows all withholdings line by line
1099 Contractor
- No automatic tax withholding — you pay quarterly
- You pay both halves of self-employment tax (15.3%)
- No unemployment insurance
- No employer-sponsored benefits
- Pay stub shows gross payment only — no withholdings
How taxes are calculated on a pay stub
Tax calculation is where most people get confused — and where bad pay stub generators get it wrong. Here's what's actually happening behind the numbers:
Federal income tax (US)
Federal tax is calculated using IRS tax brackets from Publication 15-T. Your filing status (Single, Married Filing Jointly, etc.) and the allowances from your W-4 determine how much is withheld each period. It's not a flat percentage — it's marginal, meaning only the income above each threshold is taxed at the higher rate.
Social Security and Medicare (FICA)
These are flat rates: 6.2% for Social Security (up to the annual wage base — $176,100 in 2026) and 1.45% for Medicare (no cap, plus an additional 0.9% over $200,000). Your employer matches both, but only your share appears on your stub.
State income tax
State tax varies significantly. Nine US states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). The rest range from flat rates (Illinois at 4.95%) to progressive brackets (California tops out above 13%).
Pre-tax deductions lower your taxable income
401(k) contributions, health insurance premiums, and FSA/HSA contributions are typically deducted before taxes are calculated. This is important — a $150 401(k) contribution doesn't reduce your net pay by $150, it reduces it by less, because it also lowers your tax bill.
How to make a pay stub: step by step
You have three options: a pay stub generator (fastest, most accurate), a spreadsheet template (slow, error-prone), or payroll software (overkill unless you have multiple employees). Here's the step-by-step for using a generator — specifically Stubingly, which is free.
Choose your country
Enter your company information
Enter employee details
Select hourly or salary and enter earnings
Set pay period and frequency
Enter YTD figures if this isn't the first stub
Add deductions
Review the live preview and download
Free Tool
Ready? Create your pay stub now — it's free
Every step above is handled automatically. US, UK, Canada & Australia supported.
Pay stub rules by country
The fields and tax calculations on a pay stub differ significantly depending on where you're based. Here's a quick reference for the four countries Stubingly supports:
Tax authority
IRS (federal) + state revenue agencies
No-income-tax regions
AK, FL, NV, NH, SD, TN, TX, WA, WY
Common frequency
Bi-weekly (most common)
Tax authority
HMRC — PAYE system
No-income-tax regions
N/A (UK-wide system)
Common frequency
Monthly (most common)
Tax authority
CRA (federal) + provincial agencies
No-income-tax regions
Alberta has no provincial income tax
Common frequency
Bi-weekly or semi-monthly
Tax authority
ATO — PAYG withholding
No-income-tax regions
N/A (national system)
Common frequency
Monthly or fortnightly
Common pay stub mistakes to avoid
Real vs fake pay stubs — what you need to know
There's an important legal line here. A pay stub generated from your actual earnings — your real hourly rate, your real hours, your real employer — is a legitimate income document. One that inflates your income, shows hours you didn't work, or invents an employer is fraud.
Submitting a falsified pay stub for a rental application, a mortgage, or a loan carries serious consequences — including application rejection, civil liability, and in serious cases, criminal charges for document fraud.
Make your pay stub free with Stubingly
Stubingly's pay stub generator covers everything in this guide — accurate federal and state tax calculations, hourly and salary modes, 401(k) and pre-tax deduction handling, YTD tracking, and W-2/1099 support. It works for the US, UK, Canada, and Australia.
Everything runs in your browser. Your data is never uploaded to a server, and there's no account required. Fill in the form, review the live preview, and download a clean PDF — for free.
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✓ US, UK, Canada & Australia
✓ Hourly & salary · Overtime · Bonus · Commission
✓ Real tax tables · 50-state engine · YTD tracking
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