Table of Contents
What Is a Pay Stub?
A pay stub (also called a paycheck stub, pay slip, or earnings statement) is an official document that shows an employee's earnings and deductions for a specific pay period. Think of it as a detailed receipt for your paycheck.
Key Components of a Pay Stub
Employee Information
- • Full name
- • Address
- • Employee ID (optional)
- • Last 4 of SSN
Employer Information
- • Company name
- • Business address
- • EIN (optional)
- • Phone number
Pay Period Details
- • Start date
- • End date
- • Payment date
- • Pay frequency
Earnings & Deductions
- • Gross pay
- • Tax withholdings
- • Benefit deductions
- • Net pay
Why You Need a Pay Stub
Pay stubs serve multiple critical purposes for both traditional employees and self-employed individuals:
For Apartment Applications
Landlords typically require 2-3 months of pay stubs to verify your income is 2.5-3x the monthly rent.
Learn more about apartment applications →For Loan Applications
Banks and lenders require pay stubs to assess your ability to repay loans, mortgages, or credit cards.
For Self-Employed Income Proof
Self-employed individuals and freelancers need pay stubs to document their earnings.
For Tax Records
Pay stubs help you track withholdings and reconcile your W-2 or 1099 forms at tax time.
Legal Requirements by State
Important Legal Notice
While the Fair Labor Standards Act (FLSA) doesn't federally mandate pay stubs, 41 out of 50 states require employers to provide them. All information on pay stubs must be accurate and truthful. Creating false pay stubs is illegal and can result in criminal charges.
State Requirements
✓ Strict Requirements (Written/Printed Required)
California, Colorado, Connecticut, Iowa, Maine, Massachusetts, New Mexico, North Carolina, Vermont, Washington
These states require detailed written or printed pay stubs with specific information like hours worked, pay rates, and detailed deductions.
See California-specific requirements →Access Required (Electronic OK)
Arizona, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia, West Virginia, Wisconsin
These states allow electronic pay stubs but employees must have access to them.
See New York requirements →How to Make a Pay Stub: Step-by-Step
Gather Required Information
Before you start, collect all necessary information for both employer and employee.
✓ Checklist:
- • Company name, address, and contact information
- • Employee name, address, and last 4 of SSN
- • Pay period dates (start and end)
- • Payment date
- • Pay rate (hourly or salary)
- • Hours worked (if hourly)
- • Employee's W-4 information for tax withholding
Calculate Gross Pay
Gross pay is the total amount earned before any deductions.
For Hourly Workers:
Gross Pay = (Hourly Rate × Hours Worked) + Overtime Pay
Example: $25/hr × 80 hours = $2,000
For Salaried Workers:
Gross Pay = Annual Salary ÷ Pay Periods Per Year
Example: $78,000/year ÷ 26 = $3,000
Calculate Tax Deductions
This is the most complex part. You'll need to calculate federal, state, and FICA taxes.
Pro Tip: Use our automatic tax calculator to ensure accuracy. Manual tax calculations are error-prone and time-consuming.
See detailed tax calculation guide in the section below.
Calculate Additional Deductions
Include any pre-tax or post-tax deductions:
- Health Insurance: Medical, dental, vision premiums
- Retirement Contributions: 401(k), IRA, pension
- Other Deductions: Union dues, wage garnishments, HSA/FSA
Calculate Net Pay
This is what the employee actually receives (take-home pay).
Net Pay = Gross Pay - Total Deductions
Example: $3,000 gross - $750 taxes - $200 benefits = $2,050 net
Add Year-to-Date Totals
Include cumulative totals for the calendar year:
- • YTD Gross Pay
- • YTD Federal Tax Withheld
- • YTD State Tax Withheld
- • YTD Social Security
- • YTD Medicare
These are crucial for tax reconciliation and verifying Social Security wage base limits.
How to Calculate Pay Stub Taxes (2024 Rates)
Tax calculations are the most challenging part of creating a pay stub. Here's what you need to know:
Federal Income Tax
Federal income tax withholding depends on the employee's W-4 form (filing status, allowances) and gross pay. Use the IRS Publication 15-T tables or percentage method.
2024 Tax Brackets (Single Filer):
- • 10% on income up to $11,600
- • 12% on income $11,601 to $47,150
- • 22% on income $47,151 to $100,525
- • 24% on income $100,526 to $191,950
- • 32% on income $191,951 to $243,725
- • 35% on income $243,726 to $609,350
- • 37% on income over $609,350
Social Security Tax (FICA)
Rate: 6.2% of gross wages (employee portion)
Wage Base Limit: $168,600 for 2024 (no tax on earnings above this)
Social Security = Gross Pay × 0.062
Example: $3,000 × 0.062 = $186
Medicare Tax (FICA)
Rate: 1.45% of all gross wages (no wage base limit)
Additional Medicare Tax: 0.9% on wages over $200,000 (single filers)
Medicare = Gross Pay × 0.0145
Example: $3,000 × 0.0145 = $43.50
State Income Tax
State tax rates vary significantly. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Example State Rates:
- • California: 1% - 13.3% (progressive)
- • New York: 4% - 10.9% (progressive)
- • Illinois: 4.95% (flat)
- • Texas: 0% (no state income tax)
Check state-specific requirements:
3 Methods to Create a Pay Stub
Method 1: Manual (Excel/Google Sheets)
Create your own template in a spreadsheet program.
✓ Free
✗ Time-consuming (1-2 hours)
✗ Error-prone
✗ Unprofessional appearance
✗ Manual tax calculations
Method 2: Word/PDF Template
Download a template and fill in information manually.
✓ Free
✓ Better formatting
✗ Still time-consuming
✗ Manual calculations required
✗ No verification
Common Mistakes to Avoid
❌ Incorrect Tax Calculations
Using wrong tax rates or forgetting to account for tax brackets. This is the #1 mistake that makes pay stubs look fake.
❌ Missing Year-to-Date Totals
Landlords and lenders expect to see YTD totals. Missing these makes your pay stub suspicious.
❌ Inconsistent Date Logic
Pay date should be after the pay period ends. Getting this wrong is an immediate red flag.
❌ Unrealistic Income Levels
Make sure your stated income matches industry standards for your role and location. Landlords verify this.
❌ Poor Formatting
Unprofessional fonts, misaligned columns, or inconsistent spacing can make even accurate pay stubs look fake.
❌ Wrong Social Security Wage Base
In 2024, Social Security tax only applies to the first $168,600 of wages. Charging it on amounts above this is incorrect.
Frequently Asked Questions
Can I legally make my own pay stub?
Yes, if you're self-employed, a freelancer, or a small business owner, you can legally create your own pay stubs. However, all information must be 100% accurate and truthful. Creating false pay stubs with inflated income or fake employment is illegal and can result in fraud charges. If you're creating pay stubs for self-employment income, ensure the amounts reflect your actual earnings.
What information is required on a pay stub?
At minimum, a pay stub must include: employer and employee names/addresses, pay period dates, gross wages, all deductions (federal tax, state tax, Social Security, Medicare), net pay, and year-to-date totals. Some states have additional requirements—check your specific state laws above.
How much does it cost to make a pay stub?
You can create pay stubs manually for free (using Excel), but it takes 1-2 hours and is error-prone. Professional pay stub generators like RenterPaystub cost $12.99-$21.99 and save hours of work while ensuring accuracy. Most people choose paid generators for apartment applications because accuracy matters.
Can landlords verify pay stubs?
Yes. Landlords can contact employers directly, request additional documentation (bank statements, tax returns), or use verification services. That's why accuracy is critical. If you're a gig worker or freelancer, be prepared to provide additional proof like bank statements or 1099 forms.
Do I need pay stubs if I'm self-employed?
Yes, especially for apartment applications. Self-employed individuals need pay stubs to document their income since they don't receive them from an employer. These serve as proof of your earnings and help landlords verify you can afford rent.
How many pay stubs do I need for an apartment?
Most landlords require 2-3 months of consecutive pay stubs. They want to see consistent income, not just one high-earning month. Learn more about apartment application requirements.
What's the difference between a pay stub and a W-2?
A pay stub shows earnings for a single pay period (weekly, bi-weekly, monthly), while a W-2 is an annual tax form showing total yearly earnings and withholdings. Pay stubs are issued regularly; W-2s come once a year (January 31 deadline).
Can I use pay stubs for loan applications?
Yes, banks and lenders typically require recent pay stubs (usually 2-3 months) to verify income for mortgages, car loans, and personal loans. They may also request bank statements and tax returns for verification.
Skip the Manual Work—Create Your Pay Stub in 5 Minutes
Why spend hours on spreadsheets when you can generate a professional, landlord-approved pay stub instantly? Automatic tax calculations, professional templates, and instant PDF download.
Related Resources
Pay Stubs for Apartment Applications
Complete guide to what landlords look for in income verification.
Self-Employed Pay Stubs
How to document income when you work for yourself.
How to Read a Pay Stub
Understand every section of your pay stub from gross pay to deductions.
Freelancer Income Verification
Pay stub solutions for freelancers and contractors.