How to Make a Paystub: Complete Guide

Why You Might Need to Make a Paystub

Paystubs (also called pay stubs, paycheck stubs, or earnings statements) serve as the official record of payment between an employer and employee. While payroll software handles this for large companies, there are many situations where you might need to create a paystub yourself:

• Small business owners who manage payroll manually
• Freelancers and independent contractors who need to issue themselves payment records
• Landlords or lenders requiring proof of income from self-employed individuals
• Household employers (nannies, caregivers, cleaners) who need to provide pay stubs
• Side hustle workers who want to document income for tax purposes

Whatever your reason, this guide walks you through every field on a professional paystub, how to calculate each deduction, and how to generate one quickly using our free tool.

What Every Paystub Must Include

A professional paystub contains three main sections. Here is what each one needs:

Section 1: Employer & Employee Information

• Employer: Company name, address, and employer ID number (EIN)
• Employee: Full name, address, and last four digits of SSN or SIN
• Pay period: Start and end dates (e.g., June 1–15, 2026)
• Pay date: The date the check is issued

Section 2: Earnings Breakdown

• Pay type: Regular, overtime, holiday, bonus, commission, or PTO
• Hours/Units: Hours worked or units produced per pay type
• Rate: Hourly rate or salary amount
• Gross pay (this period): Total earnings before deductions
• Year-to-date (YTD) gross: Cumulative earnings for the year

Section 3: Deductions & Net Pay

• Pre-tax deductions: 401(k), HSA, health insurance premiums
• Federal income tax: Withheld based on W-4 selections
• State income tax: Varies by state
• FICA taxes: Social Security (6.2%) and Medicare (1.45%)
• Regional levies: SDI, FLI, WA Cares, etc.
• Post-tax deductions: Roth 401(k), wage garnishments
• Net pay: The final amount paid to the employee

Step-by-Step: How to Calculate Paystub Deductions

Let us walk through an actual paystub calculation for a bi-weekly employee earning $3,000 gross per pay period (equivalent to $78,000/year).

Step 1: Calculate Pre-Tax Deductions

The employee contributes 5% to their 401(k):

They also have health insurance costing $200 per pay period.

Step 2: Calculate Federal Income Tax

Using the single filer standard deduction and 2026 brackets, the estimated federal withholding on $2,650 bi-weekly (equivalent to ~$68,900 annualized taxable):

Note: The exact amount depends on the employee's W-4 settings, including filing status, dependents, and any additional withholding.

Step 3: Calculate FICA Taxes

FICA is calculated on total gross wages, not taxable income after pre-tax deductions:

If the employee earns over $200,000, an additional 0.9% Medicare surcharge applies on the excess.

Step 4: Calculate State Tax

For an employee in Texas (no state income tax), this is $0. For an employee in California:

Step 5: Calculate Net Pay

Putting it all together for a Texas-based employee:

Common Paystub Mistakes to Avoid

• Wrong year-to-date totals: Always verify cumulative YTD earnings, taxes, and deductions match previous pay stubs.
• Miscalculating FICA on pre-tax deductions: Remember that retirement contributions reduce income tax but NOT Social Security/Medicare.
• Omitting regional levies: States like California, Washington, New Jersey, and New York have mandatory payroll deductions beyond standard taxes.
• Incorrect pay frequency adjustments: A semi-monthly employee (24 pay periods) and a bi-weekly employee (26 pay periods) have different per-paycheck amounts.
• Missing pay period dates: Paystubs must clearly show the period the wages cover, not just the check date.
• No employer information:Every paystub needs the employer's name, address, and tax ID number.

Digital Paystubs: What to Know

In 2026, most paystubs are delivered digitally rather than on paper. Digital paystubs have the same legal standing as paper versions, but there are a few considerations:

• PDF format is standard — it preserves formatting and is accepted for mortgage applications, rental agreements, and government programs.
• Password protection is recommended for emailed paystubs containing SSN/SIN information.
• State laws vary — some states require employers to provide paper paystubs upon request, while others allow digital-only delivery.

For a full explanation of every line on a paystub, including sample paystub screenshots and descriptions of uncommon deduction codes, see our What Is a Paystub? Complete Breakdown Guide.

Use Our Free Professional Paystub Builder

Instead of building a paystub from scratch in a spreadsheet or manually calculating each deduction, our Professional Paystub Builder does everything for you.

Enter the employee's information, pay rate, hours, and deductions — the tool automatically calculates federal and state withholding, FICA taxes, regional levies, and year-to-date totals. Download a professional PDF paystub ready for sharing with lenders, landlords, or for your records.