How to Create a Pay Stub

Before you start

Creating a pay stub accurately requires knowing several pieces of information in advance. Gather the following before you begin:

• Employer legal name, address, and EIN
• Employee legal name, address, and ID
• Pay period start and end dates, and the pay date
• Hours worked (regular and overtime) or salary amount
• Any bonuses, commissions, or additional earnings
• Tax withholding amounts (federal, state, FICA)
• Benefit deduction amounts (health, retirement, etc.)

If you need to calculate the tax withholding amounts, use the Paycheck Calculator first.

Step 1: Enter employer information

Start with the company's legal name and business address. Include the Employer Identification Number (EIN) if the stub is for W-2 employees. The EIN appears on the company's IRS SS-4 confirmation letter.

If you're a sole proprietor paying yourself (as a 1099 contractor, not an employee), you may not need an EIN — your SSN serves as your taxpayer ID. See the 1099 Tax Calculator for self-employment tax estimates.

Step 2: Enter employee information

Use the employee's legal name exactly as it appears on their Social Security card or tax documents. For the SSN field, only include the last four digits for security. Never store or display a full Social Security Number on a pay stub.

Step 3: Set the pay period

Enter the pay period start and end dates and the pay date. These must be accurate for tax compliance. The pay date is when the employee receives their payment, which may differ from the period end date by several days.

Common pay frequencies and their effect on gross pay calculation:

Step 4: Calculate and enter earnings

For hourly employees, multiply hours by the hourly rate. Add overtime pay separately: hours over 40 per workweek at 1.5× the regular rate (federal minimum).

For salaried employees, divide the annual salary by the number of pay periods. Add bonuses, commissions, and other one-time payments as separate line items.

The sum of all earnings is the gross pay.

Step 5: Calculate and enter deductions

Deductions include taxes and any benefit withholdings. For tax deductions, use current IRS withholding tables (Publication 15-T) or use the Paycheck Calculator to estimate amounts.

Standard deductions to include:

• Federal income tax: Based on gross pay, filing status, and W-4 elections
• Social Security: 6.2% of gross wages up to $184,500 (2026)
• Medicare: 1.45% of all wages
• State income tax: Varies by state; some states have none
• Benefits: Health insurance, 401(k), HSA, etc.

Step 6: Verify net pay

Net pay = Gross Pay − Total Deductions. Double-check this calculation before finalizing the pay stub. A common error is entering deduction amounts that are too high, resulting in a negative net pay.

Step 7: Preview and download

Review the completed pay stub in preview mode before downloading. Check that all names, amounts, and dates are correct. Most employers keep pay stub records for at least 3–7 years.