How to Make Pay Stubs for Employees

Calculate gross earnings before formatting the statement

For hourly employees, use approved hours and the applicable rate for the work performed. Check overtime by workweek and any additional rules that apply. A salary should be allocated using the actual payroll schedule, with separate treatment for partial periods or adjustments.

For example, a fictional $52,000 annual salary paid in 26 equal biweekly installments produces $2,000 in regular gross wages per installment. That is an earnings calculation, not a determination of take-home pay. Pay frequency also affects withholding calculations; biweekly and semimonthly are different schedules.

Use actual withholding and benefit deductions

Federal income-tax withholding depends on taxable wages, the pay frequency and the employee’s W-4. It is not one fixed percentage of gross pay. State and local rules and benefit elections can add other lines. Start with IRS Publication 15-T for federal withholding methods and compare your result with the processed payroll.

For a fictional payment of $2,000 gross, $150 illustrative federal withholding, $124 Social Security, $29 Medicare and a $100 traditional employee 401(k) contribution, net pay is $1,597. This example assumes wages below the applicable FICA thresholds, no state/local withholding and no other adjustments. The $150 is a placeholder, not a tax calculation. The retirement contribution is deducted once; its federal income-tax treatment does not make the FICA wage base $1,900.

Use the Pay Stub Calculator to review a breakdown and the Paycheck Calculator for estimated take-home pay. Confirm their supported methods and every input before using an estimate for a real employee.

Update YTD categories once per payment

If verified prior YTD gross is $18,000, adding this $2,000 payment makes gross YTD $20,000. If prior employee taxes are $3,000 and prior non-tax deductions are $1,000, this example makes them $3,303 and $1,100. Prior net pay of $14,000 plus $1,597 gives $15,597. Check that $20,000 − $3,303 − $1,100 also equals $15,597.

Use actual history, including corrections. A corrected replacement of the same payment must not add another payment to YTD. Keep tax-specific wage balances separate from gross YTD. See how YTD works and the annotated pay stub examples.

How to make pay stubs for several employees

Use one reviewed wage statement for each employee and pay period. A small-team checklist helps prevent one person’s hours, deductions or YTD figures from appearing on another person’s statement.

1. Start with the approved payroll register and identify the employee and period.
2. Compare hours, rates and earnings to the source records. Review overtime by the applicable workweek.
3. Match deductions and withholding to that employee’s actual payroll calculation.
4. Compare net pay with the payment records and check each YTD category.
5. Save the final issued version, record delivery and repeat the review for the next employee.

The Pay Stub Calculator can help review an estimated breakdown and YTD totals. The Paycheck Calculator focuses on estimated take-home pay. Neither estimate establishes that wages were paid. Verify every figure against the actual payroll.

For document options and Pro’s saved-entry and duplicate features, see pay stubs for small business employers. Saved information still needs review for the employee and period you are preparing.

Making pay stubs for LLC employees

Use the same source-record review for an LLC’s employees: business identity, employee identity, pay dates, earnings, deductions, net pay and YTD. Do not assume an LLC owner’s withdrawal is payroll wages.

The IRS explains that partners, including members of an LLC taxed as a partnership, are self-employed when performing services for the partnership. An LLC’s tax classification and the person’s role matter. Resolve the payment’s treatment with your payroll or tax adviser before choosing a document.

For a contractor or other business payment, use the contractor records guide and the pay stub versus 1099 comparison.

Issue and retain the final statement

Once the figures are reviewed, open the generator to prepare the document. Check the finished preview, complete the existing checkout and save the final PDF after payment verification. Deliver the statement according to the requirements that apply to your employees.

Retain the supporting records using the payroll recordkeeping workflow. For a correction, preserve the original and corrected versions and reconcile any payment adjustment separately.

Common mistakes before issuance

• Using a pay date as the full period covered by the wages.
• Copying another employee’s deductions or prior balances.
• Subtracting both a total-tax line and its individual tax components.
• Treating an employer contribution as an employee deduction.
• Assuming a template guarantees all state-required fields or lawful delivery.
• Presenting a contractor invoice or an owner draw as employee wages.

Use the pre-issue checklist, applicable state documentation guidance and the Department of Labor’s recordkeeping fact sheet. A pay stub summarizes payroll; it does not replace the supporting records or perform tax deposits and filings.

Can an employee create an employer-issued statement?

An employee who needs a missing statement should request it from their employer or payroll provider. A self-created document is not a retrieved or independently verified employer record.