Question 1

What is a pay stub and what information does it include?

Accepted Answer

A pay stub (also called paycheck stub or payslip) is a document that shows an employee's gross pay, deductions, and net pay for a pay period. It includes: employee information (name, address, SSN), employer information (company name, address, EIN), pay period dates, gross wages, federal income tax withholding, state income tax withholding, Social Security tax (6.2%), Medicare tax (1.45%), other deductions (health insurance, retirement contributions), and net pay (take-home amount). Pay stubs also show year-to-date totals for all categories.

Question 2

How do you create a free pay stub?

Accepted Answer

To create a free pay stub: 1) Use a pay stub calculator or template generator (like this one). 2) Enter employee information (name, address, SSN/EIN). 3) Input gross pay amount for the period. 4) Calculate or enter tax withholdings (federal, state, FICA). 5) Add any other deductions (insurance, retirement, garnishments). 6) Calculate net pay (gross minus deductions). 7) Download or print the generated stub. Many online generators offer free templates in PDF or Excel format. Always ensure the template includes all required information for compliance.

Question 3

What deductions are taken from a paycheck?

Accepted Answer

Standard paycheck deductions include: Mandatory deductions: 1) Federal income tax (10-37% based on brackets and W-4), 2) State income tax (0-13% depending on state), 3) Social Security tax (6.2% up to wage base limit), 4) Medicare tax (1.45%, plus 0.9% additional for high earners). Voluntary deductions: 5) Health insurance premiums, 6) Retirement contributions (401k, IRA), 7) Dental/vision insurance, 8) Life insurance, 9) FSA/HSA contributions. Court-ordered: 10) Wage garnishments, 11) Child support. Total deductions typically range from 20-35% of gross pay.

Question 4

How do you calculate net pay from gross pay?

Accepted Answer

To calculate net pay: 1) Start with gross pay (total earnings before deductions). 2) Calculate federal tax withholding (based on W-4 and tax brackets). 3) Calculate state tax (varies by state, 0-13%). 4) Calculate FICA: Social Security 6.2% + Medicare 1.45% = 7.65% total. 5) Subtract any voluntary deductions (insurance, retirement). 6) Net pay = Gross pay - All deductions. Example: $3,000 gross - $360 federal - $150 state - $186 SS - $43.50 Medicare = $2,260.50 net pay. Quick estimate: net pay is typically 70-80% of gross.

Question 5

Is it legal to create your own pay stubs?

Accepted Answer

Employers can legally create their own pay stubs using templates or software, but they must: 1) Include all required information (varies by state—most require gross pay, deductions, net pay, pay period dates), 2) Provide accurate calculations based on actual withholdings, 3) Comply with state paystub laws (some states mandate electronic or paper delivery), 4) Keep records for required period (typically 3-7 years). However, creating fake pay stubs to deceive lenders, landlords, or government agencies is ILLEGAL and constitutes fraud. Only create legitimate pay stubs for actual employment and compensation.

Question 6

What is the difference between gross pay and net pay?

Accepted Answer

Gross pay is your total earnings before any deductions—your full salary or wages. Net pay (take-home pay) is what you actually receive after all deductions. Example: $60,000 annual salary = $5,000 monthly gross (if paid monthly). After deductions (taxes, insurance, etc.), you might receive $3,800 net pay. The difference ($1,200) went to: federal tax (~$600), state tax (~$250), Social Security (~$310), Medicare (~$72.50), health insurance (~$150), 401k (~$250). Your net pay is typically 70-80% of gross, depending on tax rates and voluntary deductions.

Question 7

Do employers have to provide pay stubs?

Accepted Answer

Pay stub requirements vary by state: Access states (required): 35+ states require employers to provide pay stubs either in paper or electronic format. No access states: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, Tennessee—no requirement (though most employers still provide them). Electronic pay stubs: Allowed in most states if employees can print and access them. Paper required: Some states mandate paper unless employee consents to electronic. Even in no-requirement states, providing pay stubs is best practice for transparency and employee trust. Check your specific state law for requirements.

Question 8

What is FICA and how much is deducted?

Accepted Answer

FICA (Federal Insurance Contributions Act) includes Social Security and Medicare taxes. Total FICA deduction: 7.65% of gross wages (6.2% Social Security + 1.45% Medicare). Employee pays 7.65%, employer matches with another 7.65% (15.3% total). Social Security tax: 6.2% on earnings up to $168,600 (2024 limit)—earnings above this aren't taxed. Medicare tax: 1.45% on all earnings, plus 0.9% Additional Medicare Tax on earnings over $200,000 (single) or $250,000 (married). Example: $3,000 gross = $186 Social Security + $43.50 Medicare = $229.50 total FICA.

Question 9

Can I use a pay stub template for self-employment?

Accepted Answer

Self-employed individuals typically don't create pay stubs because they don't receive traditional paychecks—they receive business income. Instead, use: 1) Profit and Loss statements showing business income, 2) Bank statements showing deposits, 3) Tax returns (Schedule C for self-employment income), 4) 1099 forms from clients. If you need proof of income for loans/rentals: Provide tax returns (most accepted), create invoices and payment records, use accounting software reports (QuickBooks, FreshBooks). Creating fake pay stubs as if you're an employee when you're actually self-employed is fraudulent. Show actual self-employment income documentation.

Question 10

What should you do if your pay stub has errors?

Accepted Answer

If you notice pay stub errors: 1) Document the error—note what's wrong and when you discovered it. 2) Notify your employer/HR immediately in writing (email with details and calculations). 3) Request correction and back pay if underpaid. 4) Check your bank account—sometimes stub is wrong but payment is correct. 5) Review recent stubs for recurring errors. 6) Keep all records for reference. Common errors: incorrect tax withholding, missing hours/overtime, wrong pay rate, deduction errors. Employers must correct errors promptly and adjust future paychecks or issue separate payment. Persistent errors may indicate payroll system issues requiring IT/accounting review.

Free Pay Stub Template with Calculator - Paycheck Stub Generator

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