How Does a Pay Stub Generator Work?

Even if it’s not a legal requirement, many employers provide their employees with pay stubs to keep records of earnings, income taxes, and pay rates. PayStubCreator’s easy online check stub maker is the best way to create pay stubs for yourself and your employees.

financial, analysis, accounting
mohamed_hassan (CC0), Pixabay

What are pay stubs?

Pay stubs, paycheck stubs, and check stubs are all the same thing.

Although paycheck stubs are not federally mandated, some written form of pay statement may be required in your state. In some states, employers need to give employees printed pay stubs. In others, employers just need to give employees access to pay stubs either online or in written form. Some states don’t require employers to provide their employees with pay stubs at all.

By federal law, employers must still keep pay stubs for their records. The Fair Labor Standards Act requires employers to keep payroll records, which include each employee’s hours worked and wages received.

Pay stubs include information for both employers’ and employees’ records, often including:

  • The employer’s name and address
  • The name of the business
  • The employee’s name, address, and social security number
  • Dates of the pay period
  • The employee’s pay rate
    • Hourly employees’ paycheck stubs list the hourly rate and
      • The number of hours worked, plus overtime rates and earnings
    • Salaried employees’ paycheck stubs typically pay for 40 hours per week
  • Gross earnings (pay period and year-to-date): Earnings before taxes, contributions, and deductions (for the employee’s health and life insurance)
    • Bonuses are included under gross earnings
  • Taxes withheld:
    • Federal income tax,
    • State and local taxes, if applicable, and
    • FICA tax (earns employee credits for Social Security benefits)
  • The employee’s contributions to retirement plans or pensions, if applicable
  • Net pay (pay period and year-to-date): Total amount the employee takes home after taxes, contributions, and deductions

What are pay stubs used for?

A pay stub is proof of income provided by an employer to their employee. These help keep records for budgeting and tax purposes, and they can also come in handy in day-to-day life.

The primary purpose of a pay stub is so employees can make sure they’re being paid correctly. Employees can verify their gross pay and see a breakdown of all withholdings and deductions.

The following scenarios will likely call for a pay stub:

Personal loan

Banks often ask for your most recent pay stub or even multiple pay stubs from recent months to ensure that you can repay the loan you ask for.

Auto loan

Like with personal loans, banks need pay stubs for proof that you’ll be able to repay the loan. Banks sometimes require you to have a certain amount of income based on how much you’re financing the car for.

Tax filing

Pay stubs can serve as proof for tax purposes in place of a W-2 form with conflicting information. It’s much easier to file taxes with a written statement of how much income you received and how much you paid in taxes.


Landlords almost always require proof of income before leasing you a house or apartment to make sure you’ll be able to afford rent. Some rental agencies request many weeks’ worth of paycheck stubs.

Accident compensation

If you’re in an accident and find yourself unable to work, you can file for compensation benefits with the U.S. Department of Labor. To do so, you need to prove how much you were earning before the accident and how much you would be earning had you not been in the accident.

How do I create pay stubs?

The most convenient, efficient method is to use an online paycheck stub maker. PayStubCreator offers several easy-to-fill-out templates for just $8.99 per stub.

How does a pay stub generator work?

A paycheck stub maker makes automatic calculations based on information entered into the system. Be sure to use the exact dollar amount and not a round-up or estimate, as doing so is technically fraud.

Free paycheck stub makers are highly unreliable. Their templates are rarely customizable, which creates an unprofessional image. Free stub makers may use invalid data or make inaccurate calculations.

The best way to ensure that you’re getting an accurate and authentically-made pay stub is to use a professional paycheck stub maker. The site should be secure and reputable, and good customer service may come in handy.

PayStubCreator provides a fully-online, 100%-accurate paycheck stub maker at a modest, affordable price. Employers as well as independent contractors and freelancers can use PayStubCreator to create professional, correct pay stubs. PayStubCreator can also generate W-2 forms.

Why use PayStubCreator?

PayStubCreator’s check stub maker is run by professional accountants, so you can be confident that the calculations made are error-free. The calculations are delivered to you instantly upon submission of the required information.

Simply enter relevant information about the employer, employee, pay period, and pay rate, and PayStubCreator does the rest. No subscription is necessary, there’s no software to install, and there are no additional hidden fees.

Their paycheck stub maker works instantly so that you can preview your filled-out pay stub right away. Each paycheck stub is both downloadable and printable, and the generated stub is emailed to you automatically upon completion.

If your order is lost for any reason, PayStubCreator allows you to resend your order for free.

PayStubCreator provides stub samples and customer reviews on our website. There is a thirty-day money-back guarantee and you can pay securely using PayPal or any type of credit card.

PayStubCreator offers a 24/7 toll-free customer service phone line as well as a form to contact us via email.