A pay stub is the document that shows exactly what an employee or contractor earned, what was withheld for taxes and benefits, and what they took home. For employers, accurate pay stubs are a legal requirement in most states. For self-employed people, pay stubs are essential for proving income when applying for an apartment, loan, or mortgage. This guide breaks down what a complete pay stub includes, when you need one, and how to generate professional pay stubs online for free.
A pay stub (also called a paycheck stub or pay slip) is a record of one specific pay period — what was earned, what was deducted, and what was paid out. It accompanies a paycheck or direct deposit and serves as the worker's record of compensation.
Who needs pay stubs:
In the 41 states requiring pay stubs, the format and delivery method may vary, but the information requirements are similar.
A proper pay stub has four main sections:
Pre-tax deductions:
Taxes:
Post-tax deductions:
Let us walk through a complete pay stub for a software engineer in Austin, TX (no state income tax).
Employer: Employee:
BlueBonnet Tech LLC Maria Rodriguez
1422 South Lamar Blvd 4127 Westgate Blvd
Austin, TX 78704 Austin, TX 78745
EIN: 81-1234567 SSN: XXX-XX-4421
PAY STUB
Pay Period: May 1 - May 14, 2026 (Bi-weekly)
Pay Date: May 17, 2026
Check #: DD-2026-0142 (Direct Deposit)
Earnings Hours Rate Current YTD
Regular 80.00 $60.00 $4,800.00 $48,000.00
Overtime 4.00 $90.00 $360.00 $720.00
--------------------------------------------------------
Gross Pay $5,160.00 $48,720.00
Pre-Tax Deductions Current YTD
401(k) (6%) $309.60 $2,923.20
Health Insurance $185.00 $1,665.00
HSA Contribution $50.00 $450.00
--------------------------------------------------------
Total Pre-Tax Deductions $544.60 $5,038.20
Taxable Wages $4,615.40 $43,681.80
Taxes Current YTD
Federal Income Tax $623.08 $5,720.40
Social Security (6.2%) $286.16 $2,708.27
Medicare (1.45%) $66.92 $633.39
TX State Income Tax $0.00 $0.00
--------------------------------------------------------
Total Taxes $976.16 $9,062.06
Post-Tax Deductions Current YTD
Roth 401(k) (2%) $103.20 $972.40
--------------------------------------------------------
Total Post-Tax Deductions $103.20 $972.40
Net Pay $3,536.04 $33,609.34
Direct Deposit to: Wells Fargo ****4421
Questions? Contact payroll@bluebonnettech.com
This pay stub is complete, accurate, and meets the requirements of all 41 pay-stub-required states.
State laws vary on pay stub format and delivery. Quick summary:
No pay stub required:
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, Tennessee
Print or electronic OK (most states):
Most of the 41 pay-stub-required states allow electronic pay stubs as long as employees can access and print them easily.
Print only:
Vermont and a few others require physical pay stubs unless employees opt in to electronic.
Required info varies:
California, New York, and a few other states have extra required fields beyond the federal baseline. California, for example, requires employers to show the inclusive dates of the pay period, all hourly rates, and applicable piece rates.
If you employ workers in multiple states, comply with the strictest state's requirements as your baseline — usually California.
If you are self-employed or a freelancer, you do not get pay stubs from an employer. But you may need to create them yourself for:
For self-employed pay stubs, the format is similar to a W-2 stub but with these differences:
Use our free pay stub generator to create a professional self-employed pay stub in under 2 minutes.
Watch for these errors:
A real pay stub generator calculates taxes correctly and prevents most of these errors. Be skeptical of "too simple" pay stub tools that ask you to enter only gross and net — they may produce mathematically invalid stubs that lenders will reject.
Different situations need different tools:
For employers paying W-2 employees: A full payroll service (Gusto, ADP, Paychex, OnPay). $40-150/month depending on employee count. These handle tax calculations, filings, and direct deposit automatically.
For self-employed/freelancers documenting their own income: A free pay stub generator like Eonebill.ai's pay stub generator. Create accurate pay stubs in under 2 minutes for apartment or loan applications.
For small business owners paying themselves: Either a payroll service (if you take a real salary) or a free generator (if you take owner draws). Owner draws on LLC/sole prop businesses do not require formal pay stubs but creating them helps with documentation.
For 1099 contractors documenting income: Free generator for your own records. The 1099 you receive at year end is the official tax document, but pay stubs help month-to-month financial planning.
For occasional pay stub needs (proof of income for a one-time application), free tools work fine. For ongoing payroll, invest in a real payroll service — the tax-filing automation alone is worth the cost, and pay-stub mistakes can trigger expensive penalties. Eonebill.ai pricing covers the business invoicing side; for actual payroll, pair it with Gusto or a similar dedicated payroll tool.
Whether you generate pay stubs for yourself or for employees, accuracy is non-negotiable. Use a real calculator, double-check tax math, and keep all pay stubs for at least 7 years for IRS purposes.
The pay stub format adapts to different employment structures.
W-2 employee (traditional):
Full payroll calculations including all withholdings. Federal, FICA, state, local taxes. Pre-tax and post-tax deductions. Employer pays half of FICA. Standard structure used by most employers.
1099 contractor:
Technically does not need a pay stub from the client. The client issues a 1099-NEC at year end. But contractors often create their own pay stubs for personal records and proof of income. Self-generated pay stubs for 1099 contractors should reflect: gross income earned, estimated tax withholdings (none actually withheld), and net income (same as gross, since no withholdings).
Statutory employee:
Special category for certain workers (some commission salespeople, life insurance agents, certain home workers). Treated as employees for FICA but as self-employed for income tax. Pay stubs show FICA withholding but not federal income tax withholding.
Owner-employee (S-Corp shareholder taking salary):
Must take a "reasonable salary" subject to full payroll taxes. Pay stub shows all withholdings just like any W-2 employee. Distributions above salary are separate (not on the pay stub, reported on K-1 at year end).
Owner-employee (LLC, sole prop):
No formal pay stub typically. Owner draws are not subject to payroll taxes (you pay self-employment tax via quarterly estimates). Self-generated pay stubs for owner draws are common for proof of income.
Partnership member:
Partners receive guaranteed payments and distributive shares, not wages. Pay stubs are not typically issued. K-1 at year end is the official tax document.
Match the pay stub format to the actual employment structure. Issuing W-2-style pay stubs to a 1099 contractor creates confusion and audit risk.
Some states have particularly detailed pay stub requirements:
California (Labor Code 226):
Failure to comply: $50 first violation per employee, $100 subsequent violations. Class actions common. Settlement averages: $1M-10M for large employers.
New York:
Massachusetts:
Washington state:
Detailed requirements similar to California.
Texas, Florida, Tennessee, and others with no state income tax:
Simpler requirements but still need to show gross, FICA, federal withholding, and net.
If you employ workers in multiple states, comply with the strictest state's requirements as your baseline — usually California. A unified pay stub format that meets California rules will meet every other state's rules as well.
Pay stub errors are not just inconvenient — they can be expensive.
Wrong tax calculations:
Missing required fields (California, NY, etc.):
Misclassified employees (W-2 vs. 1099):
Mathematical errors:
Pay stub format that does not match payroll:
The cost of one mistake can dwarf the cost of professional payroll software. For any business with 2+ W-2 employees, Gusto, ADP, OnPay, or Paychex is essential. Self-managed payroll for W-2 employees rarely makes sense long-term.
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