How to Make a Payroll Stub

The pay stub should show how you arrived at the employee's net earnings.

Federal law does not require you to give employees a payroll stub, according to the United States Department of Labor. But, if state law requires it, you must give your employees a payroll stub for each pay period. The exact payroll stub requirements vary by state. Still, the stub should show a breakdown of the employee's paycheck, including how you arrived at the employees' net (take-home) earnings. There are several ways to create a payroll stub.

Instructions

1. Invest in payroll software. Software often makes payroll processing easier can be used to generate pay stubs. It performs wage and deductions (such as payroll tax, wage garnishments and voluntary deductions) calculations according to the input information. Although the process to create pay stubs varies by software, generally, once you have input and verified all payroll data for the pay period, you can begin printing paychecks and pay stubs. Payroll software such as QuickBooks, Sage Peachtree, PenSoft, Ultimate Software and ZPAY all have all direct deposit and pay stub-printing capabilities.

2. Make a payroll stub with PayCheckCity's online calculator. Sign up for a free registration, which gives you the ability to print a pay stub. Choose the hourly or salary calculator. Enter the required information: tax year; state; gross earnings; federal and state (if applicable) deductions; and voluntary deductions, such as medical and retirement benefits. Then, select "Calculate" to view and/or print the payroll stub. The printed stub lists the employee's gross-to-net earnings.

3. Create a payroll stub using a spreadsheet program, such as Microsoft Excel. At the top of the spreadsheet, include the employee's name, the pay period start and end dates, and the pay date. Create the following headings: regular hours; regular pay rate; gross wages; deductions; and net pay. If necessary, you can include columns for overtime hours, overtime pay rate and other deductions, such as wage garnishment. As long as the stub shows a breakdown of the employee's hours, wages and deductions for the pay period, you can format it however you like.

   You can use abbreviations, such as FIT for federal income tax, MED for medical, DEN for dental, SIT for state income tax, SS for Social Security, and 401k for retirement benefits. There are no hard and fast rules for abbreviations. Just make them consistent to avoid confusing the employee each time she receives her payroll stub. Always save the blank template onto your hard drive for future use.

Tips & Warnings

• You can use a payroll service provider to process your payroll. In this case, the payroll service sends you the paychecks and pay stubs after it processes your payroll. Online payroll services, such as Intuit and Sure Payroll, allow you to print your own paychecks and pay stubs.

References

• U.S. Department of Labor: Are Pay Stubs Required?
• H&R Block: Understanding your Paycheck

Resources

• Read this Article in Spanish
• PayCheckCity
• Can My Boss Do That?: Pay Stub Requirement by State
• Best of the Web Verticals: Premium Payroll Solutions
• Intuit Online Payroll
• Sure Payroll