Category: General

How to Deal With the Payroll Process On Your Own

Handling payroll on your own can feel like a daunting task. This is especially true when balancing a business or freelancing with managing your finances. However, understanding the payroll process is crucial for business owners, freelancers, and contractors. It helps them stay compliant with tax laws and ensures employees or contractors are paid correctly and on time.

Many businesses outsource payroll to specialized services. However, learning to manage it independently can save costs and give you more control over your financial processes. Whether paying employees with a Form W-2 or independent contractors with a Form 1099-NEC, understanding the payroll process is key. Staying on top of your tax obligations ensures smooth and compliant operations.

This guide will walk you through the essential steps for managing payroll on your own. You’ll learn everything from payroll basics to staying organized and compliant with tax regulations. Let’s dive in and make this process easier to tackle.

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Understanding the Basics of Payroll

Before you dive into processing payroll, it’s important to familiarize yourself with some fundamental payroll concepts. Whether you’re managing payroll for employees or independent contractors, understanding these basics will help you navigate the process with confidence. This knowledge will also help you avoid costly mistakes.

Key Payroll Terms:

1) Gross Pay: This is the total amount earned by an employee before any deductions or taxes are taken out. It includes hourly wages, salary, bonuses, and overtime pay.

2) Net Pay: Net pay is the amount employees actually take home. It’s calculated after all deductions, such as taxes and other withholdings, are subtracted from their gross pay.

3) Deductions: These are amounts taken out of an employee’s gross pay. They can include:

• Federal income tax: The amount withheld based on the employee’s W-4 form.
• State and local taxes: These vary by location and depend on where the employee works.
• Social Security and Medicare (FICA taxes): These are mandatory federal taxes that fund the Social Security and Medicare programs.
• Other deductions: Health insurance, retirement contributions, union dues, etc.

4) Employer Contributions: As an employer, you may be responsible for paying certain taxes and contributions. These are paid on behalf of your employees. These include:

• Employer’s portion of FICA taxes: The employer must match the employee’s Social Security and Medicare contributions.
• Unemployment taxes (FUTA and SUTA): These are federal and state unemployment taxes. They help provide benefits to workers who lose their jobs.

Employee vs. Independent Contractor:

It’s crucial to know the distinction between employees and independent contractors. This distinction impacts both the payroll process and tax filings.

• Employees (Form W-2): If you’re paying someone as an employee, they are subject to payroll taxes. You must withhold federal and state income taxes, as well as Social Security and Medicare contributions. At the end of the year, you’ll issue them a Form W-2 to report their wages and taxes withheld.

• Independent Contractors (Form 1099-NEC): Independent contractors are not subject to the same payroll tax withholding. Instead, they are responsible for paying their own taxes, including self-employment tax. If you pay an independent contractor $600 or more during the year, you must issue them a Form 1099-NEC. This form reports the payments made.

Understanding these basic payroll concepts will set you up for success when it comes time to calculate wages, make deductions, and stay compliant with tax regulations.

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Collecting and Organizing Payroll Information

Properly organizing and collecting the necessary payroll information is the foundation for a smooth payroll process. Whether you’re paying employees or independent contractors, gathering accurate data from the outset will save you time and prevent errors later on. Here’s how to ensure you have everything you need….

-1- Employee/Contractor Information:

For employees, you’ll need the following:

• W-4 Form: When hiring an employee, they must complete a Form W-4, which determines their federal income tax withholding based on their filing status and any allowances they claim. Keeping this form up to date is essential for ensuring the correct amount of taxes are withheld.
• I-9 Form: You’ll also need to verify an employee’s eligibility to work in the U.S. by collecting information through the Form I-9.

For independent contractors, you’ll need:

• W-9 Form: Before making payments to a contractor, you should have them fill out Form W-9, which provides you with their taxpayer identification number (TIN) and other details necessary for tax reporting.

-2- Time Tracking:

For employees who are paid hourly, it’s essential to track their time accurately. This can be done manually or through timekeeping software. Make sure to record:

• Total hours worked
• Overtime hours (if applicable)

For salaried employees, the timekeeping requirement may be less frequent, but you’ll still need to ensure that any paid time off (PTO), sick leave, or vacation days are accounted for. Independent contractors typically don’t require time tracking, but you’ll want to keep a record of the amount you’ve paid them and any agreements regarding payment schedules or rates.

-3- Pay Rates:

It’s crucial to have up-to-date pay rate information for each employee or contractor. This includes:

• Hourly rate or annual salary for employees
• Pay rate or project fees for contractors
• Any bonuses, commissions, or overtime pay

Having this information organized allows you to calculate payroll accurately and avoid underpaying or overpaying your employees or contractors.

-4- Payroll Software or Tools:

While some businesses opt to handle payroll manually, using payroll software or tools can save you time and help you avoid errors. These tools can help with:

• Calculating wages based on hours worked or salary
• Withholding the correct amount for taxes and deductions
• Generating pay stubs and records for both employees and contractors
• Filing taxes and forms like Form W-2 and Form 1099-NEC

At FormPros, we are the premier online tax-form generation company, offering a streamlined payroll solution that includes the ability to generate and file tax forms like Form W-2 for employees and Form 1099-NEC for contractors. Choosing FormPros for your payroll process ensures that your forms are accurate, timely, and compliant with tax regulations, making your payroll process easier and more efficient.

By gathering the right information and utilizing the right tools, you’ll be well-equipped to move on to the next step: calculating payroll.

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Calculating Payroll

Once you’ve gathered all the necessary information and set up your payroll system, it’s time to calculate the actual pay for your employees and contractors. Whether you’re paying an hourly wage, a salary, or a project fee, it’s important to ensure accuracy to avoid overpaying or underpaying your workers.

1) Calculating Gross Pay –

The first step in calculating payroll is determining the gross pay, which is the total amount an employee or contractor has earned before any deductions are made.

• For hourly employees: Multiply the number of hours worked by the hourly rate. If they worked overtime, make sure to calculate it based on the overtime pay rate (usually 1.5 times the regular hourly rate).
• For salaried employees: Divide the annual salary by the number of pay periods in the year. For example, if they are paid bi-weekly, divide the salary by 26.
• For independent contractors: Use the agreed-upon rate or project fee to determine how much they should be paid. If it’s based on hours worked, track those hours as you would for an hourly employee.

2) Applying Deductions –

Once you’ve calculated gross pay, the next step is to subtract various deductions. These may include:

• Federal income tax: Based on the employee’s Form W-4 and their filing status, you’ll withhold federal income tax. Payroll software can help calculate this accurately based on current tax brackets.
• State and local income taxes: In addition to federal income tax, you may need to withhold state and local taxes, which vary depending on the employee’s location.
• FICA taxes (Social Security and Medicare): You must withhold Social Security and Medicare taxes from the employee’s gross pay. For 2025, the employee pays 6.2% for Social Security (up to a wage base limit) and 1.45% for Medicare. The employer also matches these amounts, so you’ll need to contribute as well.
• Other deductions: These can include health insurance premiums, retirement contributions, garnishments, and any other voluntary or required deductions.

3) Calculating Net Pay –

Once all deductions have been subtracted from the gross pay, the result is the net pay — the amount the employee or contractor takes home. This is the final amount that you will pay out to the worker.

For contractors, since they are responsible for their own tax filings, you won’t withhold taxes on their pay. However, you will still need to report the total amount paid to them using Form 1099-NEC at the end of the year if their total earnings exceed $600.

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Making Payments and Filing Payroll Taxes

Once you’ve calculated payroll, the next step is to pay your employees and contractors while ensuring you stay compliant with tax requirements.

Paying Employees

— The most common methods for paying employees include direct deposit, paper checks, and payroll cards. Direct deposit is the fastest and most secure, allowing employees to access their funds immediately. Paper checks, though less common, are still used by some businesses, while payroll cards offer an alternative for employees without bank accounts. Whatever method you choose, providing employees with pay stubs detailing gross pay, deductions, and net pay is essential for transparency.

Paying Independent Contractors

— For independent contractors, payments are typically made through bank transfers, checks, or online services like PayPal. Unlike employees, contractors are responsible for their own tax filings, but it’s important to track payments accurately and issue them a Form 1099-NEC at the end of the year for any amount paid over $600.

Filing Payroll Taxes

— Filing payroll taxes involves submitting federal, state, and local income taxes, as well as Social Security and Medicare contributions (FICA). Employers must remit these taxes to the IRS and the appropriate state authorities, using forms such as Form 941 for quarterly filings. Additionally, unemployment taxes (FUTA and SUTA) need to be submitted to help provide benefits for unemployed workers.

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Wrapping Up Your Payroll Process

Managing payroll on your own can seem overwhelming at first, but by following these key steps, you can streamline the process and ensure that you remain compliant with tax laws. From understanding the basics of payroll and gathering the necessary information, to making payments and filing taxes correctly, staying organized is crucial to keeping everything running smoothly.

By setting up reminders, maintaining thorough records, and regularly reviewing your payroll system, you can avoid errors and penalties. And, with the help of payroll software like FormPros, you can simplify the process, generate tax forms like Form W-2 and Form 1099-NEC, and stay on top of your obligations with ease.

With the right tools and processes in place, handling payroll on your own becomes a manageable task that keeps your business compliant and your workers paid on time.

Create Your W-2 Now

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The Ultimate Guide to Pay Stub Requirements by State

When it comes to payroll compliance, understanding pay stub requirements by state is crucial for both employers and employees. Each state has its own regulations regarding whether pay stubs must be provided, in what format, and what details they must include. Failure to comply with these rules can result in fines or disputes over wages, making it essential for businesses to stay informed.

In this comprehensive guide, we’ll break down pay stub requirements by state, covering which states mandate pay stubs, the difference between printed and electronic formats, and the key details that must be included. Whether you’re an employer looking to ensure compliance or an employee wanting to understand your rights, this guide has everything you need to navigate pay stub laws with confidence.

Understanding Pay Stubs 

Before we unpack what the requirements are by state, let’s first define what a pay stub is. 

A pay stub is a written, itemized statement that documents the details of an employee’s total wages earned during a specific pay period. 

The first step in creating a paystub is to have each employee complete a Form W-4. This is an IRS document employees use to determine the amount of federal income tax to withhold from their paychecks.

Create Form W-4

Once this process is completed, employers will be required to provide the following basic information: 

• The employee’s number of hours worked during the pay period 
• The total wages paid before the employee’s deductions
• Federal, state and local taxes withheld from the employee’s gross earnings
• Other withholdings, including the employee’s share of insurance premiums 
• Net pay 

Are employers required to give pay stubs that include all of these details? While there is no universal federal mandate, most states have specific rules outlining what must be included in a pay stub.

Pay stubs are important because they can be used as proof of income when employees apply for a loan, buy a home or need a record to query their deductions or gross pay. Employers need to ensure that the information on the pay stub matches the data on each employee’s W-2 form, which is used to file personal tax returns.

Paystub Creation: 

Employers have several options for generating pay stubs, depending on their business needs. Many accounting and payroll software programs come with built-in pay stub generators, making the process seamless. Business owners can also create custom pay stub templates using spreadsheet software like Excel.

For a faster and more convenient solution, employers can use FormPros’ online pay stub generator, which offers a user-friendly way to create professional pay stubs in minutes. Later in this article, we’ll explore how to generate electronic pay stubs in more detail.

Are Employers Required to Provide Pay Stubs?

There is no federal law mandating that employers provide pay stubs to employees, nor is there a single standard that all states must follow.

However, do employers have to provide pay stubs to comply with labor laws? The answer depends on state regulations. Employers should be aware of the Fair Labor Standards Act (FLSA), a federal law that sets regulations for minimum wage, overtime pay, recordkeeping, and child labor standards for both private and public sector workers. While the FLSA does not explicitly require pay stubs, it does mandate that employers maintain accurate records of employee wages and hours worked.

Since pay stub requirements vary by state, business owners should check with their state’s Department of Labor to ensure compliance with pay stub laws.

Paystub Requirements by State

As of 2025, does an employer have to provide a pay stub in every state? The answer varies, as states generally fall into three categories based on their pay stub regulations.

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-Access States-

Employers in these states are required to provide employees with access to a pay stub detailing their pay information. The format is not specified, allowing for electronic delivery as long as employees can access their pay information. These states include:

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-Access/Print States-

These states require employers to provide a written or printed pay statement detailing the employee’s pay information. Employers can furnish electronic pay stubs, provided employees have the capability to print them. The states in this category are:​

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-No Requirement States-

In these states, are employers required to give you a pay stub? No, there are no specific laws mandating employers to provide pay stubs. Employers may choose to provide electronic pay stubs, but it is not required by state law. These states include:

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-Opt-Out and Opt-In States-

Additionally, some states have specific provisions regarding electronic pay stubs:​

• Opt-Out States: Employers can implement electronic pay stub systems but must provide employees the option to opt out and receive paper pay stubs instead. These states include Delaware, Minnesota, and Oregon.​
• Opt-In States: Employers are required to provide a physical copy of the pay stub unless the employee consents to receive electronic pay stubs. As of 2025, Hawaii is the only state with this requirement.​

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*Even though the Fair Labor Standards Act (FLSA) does not explicitly require employers to provide pay stubs, does an employer have to provide a pay stub under certain conditions? While the FLSA mandates that employers maintain accurate records of hours worked and wages paid, the specific requirement to issue pay stubs depends on state laws. To ensure compliance, employers should check with their state’s Department of Labor for detailed pay stub regulations.*

What are the Consequences of Non-Compliance? 

Failing to provide employees with pay stubs can lead to penalties that vary by state, depending on local labor laws.

For instance, in California, employers face fines of $50 for the first pay stub violation and $100 per employee for each subsequent violation per pay period. Additionally, employees in California can seek damages of up to $4,000 if their employer fails to meet pay stub requirements.

Are employers required to provide pay stubs to avoid legal repercussions? While not all states mandate them, failing to follow state-specific requirements can lead to costly penalties and employee disputes. Businesses should stay informed about their state’s regulations and ensure full compliance with pay stub laws.

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What Should a Pay Stub Look Like? A Complete Guide

Most employees are familiar with the general appearance of a pay stub, but not everyone fully understands the key details it should contain. While pay stubs serve as a record of earnings, deductions, and taxes, knowing how to read them correctly is essential for both employees and employers.

If you’re an employer, understanding what does a pay stub look like is even more important, as it ensures compliance with labor laws and helps maintain accurate payroll records.

In this guide, we’ll break down what do pay stubs look like, what they should include, how to read them correctly, and why they matter. Keep reading to make sure your pay stubs meet all necessary requirements and provide clear financial transparency.

What Exactly is a Pay Stub? 

What is a pay stub? A pay stub is part of a paycheck that lists details about an employee’s pay, such as taxes and other deduction options taken out of the employee’s earnings. How often you administer pay stubs to your employees depends on your pay cycle.

For example, if you choose to pay your employees bi-weekly, you will be administering pay stubs every two weeks, which would be 26 a year. Employees should receive a pay stub with each paycheck.

There is no single format that determines what does a salary pay stub look like. Pay stubs from different companies often have varied designs. In terms of the physical format, there are generally two types:

Physical Pay Stubs 

Although many companies are turning to software for their payroll needs, there is still some value in creating physical, paper pay stubs. Not everyone has access to a home computer, meaning not everyone would be able to access their pay stubs in a time of need, such as for proof of income when completing a rental application.  

Electronic Pay Stubs 

Electronic or paperless pay stubs are becoming the standard, and they provide a variety of benefits to both small businesses and their employees. Unlike paper pay stubs, electronic pay stubs are an environmentally friendly option. Plus, depending on the number of employees you have, electronic check stubs may cost you less to produce per pay period. 

There are multiple payroll services and software that you can choose from to help create electronic pay stubs. If you’re wondering what does a check stub look like, electronic versions typically include the same details but may vary slightly in layout depending on the payroll software used. 

There is no federal regulation on pay stubs, but each state has its own laws about providing pay stubs for employees, so you will want to review state laws to ensure that your business complies by issuing pay stubs. However, it is important to note that some states require employers to offer paper checks as a payment option or that employees can opt-out of online pay stub delivery.  

It is a good idea to give your employees the option of paper or electronic pay stubs, regardless of whether your state requires it or not. Although most employees may prefer to receive their pay stubs electronically, you want to ensure that pay stubs are accessible to all of your employees. 

Some pay stubs might be smaller, and some may have their information arranged differently than others. Regardless, as long as they are easy to read, the physical look is not the most important aspect of pay stubs. The priority should be the information that they include. 

What Information Should a Pay Stub Contain? 

A pay stub provides a detailed breakdown of an employee’s earnings, deductions, and net pay. If you’ve ever wondered what does a paystub look like, here’s a breakdown of the essential details found on one:

General Payroll Details:

• Payroll cycle (weekly, biweekly, semimonthly, or monthly)
• Wages for all employees
• Tax withholdings (determined by an employee’s W-4 form)
• Benefit withholdings (such as health insurance and retirement contributions)

Specific Pay Stub Components:

• Employer’s name and contact information
• Employee details (name, address, Social Security number)
• Pay period covered (start and end dates)
• Gross wages (total earnings before deductions)
• Other earnings (such as vacation pay, bonuses, or commissions)
• Payroll deductions (including health insurance, retirement contributions, and garnishments)
• Tax withholdings (federal, state, and local, if applicable)
• Total deductions (sum of all withholdings and deductions)
• Net earnings (take-home pay after deductions)
• Total paycheck amount (amount paid to the employee)
• Year-to-date (YTD) totals (gross pay, net pay, federal tax, and other deductions)

Pay stubs provide essential financial information and should always align with an employee’s W-2 form, which is used to file personal tax returns. Employees are encouraged to keep their most recent pay stubs as proof of income, as they confirm gross earnings and payment frequency.

Each pay stub reflects wages earned for a specific pay period, along with YTD amounts for tracking total earnings and deductions over time. By subtracting withholdings from gross pay, the final amount—net pay—is determined. This is the actual amount the employee receives and the sum deposited into their account at the end of each pay period.

Tax Deductions –

Deductions are a crucial part of an employee’s pay stub and can make up a significant portion of the listed items. If you’re unsure what does a salary pay stub look like, understanding these deductions can help. These are the types of deductions that may appear on your pay stub:

1) Employee Tax Deductions:

These deductions are mandated by federal, state, and sometimes local governments and are automatically withheld from an employee’s paycheck. They include:

• Federal income tax – Calculated based on the employee’s earnings, filing status, and W-4 withholdings.
• State and local taxes – Some states and municipalities require additional withholdings based on residency or work location.
• FICA taxes – Employees contribute a portion of their wages to Social Security and Medicare under the Federal Insurance Contributions Act (FICA).

2) Benefits and Voluntary Deductions:

These deductions depend on the benefits offered by the employer and the options chosen by the employee. Examples include:

• Health, dental, and vision insurance premiums – Employees may have premiums deducted for employer-sponsored insurance plans.
• Retirement plan contributions – Contributions to 401(k), 403(b), or other retirement savings plans. Some employers match a portion of these contributions.
• Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions – Employees may set aside pre-tax income for medical expenses.
• Charitable donations – Some companies allow payroll deductions for charitable giving.

3) Employer Contributions:

While not deducted from an employee’s paycheck, employer-paid contributions often appear on pay stubs to show additional compensation provided by the employer. These may include:

• Employer-paid health insurance premiums
• Employer-matched retirement contributions
• Employer’s share of FICA taxes (Social Security and Medicare)

4) Common Payroll Deductions and Allowances:

A paystub may list several specific deductions, including:

• Federal income tax – Withheld based on earnings and W-4 elections.
• State and local taxes – Depending on the employee’s residence and work location.
• Social Security tax – 6.2% of taxable wages (up to a wage cap), matched by the employer.
• Medicare tax – 1.45% of wages (with an additional 0.9% for high earners), also matched by the employer.
• Workers’ compensation contributions – In some states, employers are required to contribute to workers’ compensation insurance, which may be reflected on the pay stub.
• 401(k) contributions – Employee-elected retirement savings deductions, often with employer-matching contributions.

Why Understanding Deductions Matters —

Pay stub deductions impact an employee’s take-home pay and overall financial planning. Employees should regularly review their pay stubs to ensure the correct amount is withheld for taxes and benefits. Employers must also ensure that payroll deductions comply with federal and state regulations to avoid errors and penalties.

By understanding these deductions, employees can make informed decisions about their tax withholdings, retirement contributions, and benefit selections—helping them maximize their earnings and financial well-being.

Creating Pay Stubs 

Employers need to know how to properly create a paystub to accurately pay their employees on time and avoid any discrepancies in pay. You can use Excel to create spreadsheets for your pay stubs, but this process is often tedious and prone to errors. Be cautious, though—while there are online tools available, some individuals use them to make fake paystubs, which is illegal and can result in serious legal consequences. It’s important to use a reputable paystub generator that ensures accuracy and compliance.

If you’re wondering what does a check stub look like, accuracy is key. Inaccurate pay stubs may hurt your employees, and continuously incorrect pay stubs may cause them to lose trust in you as an employer. If prolonged, it may cause trouble when tax season comes along.

FormPros can help you easily create pay stubs that are accurate and easy for your employees to read. FromPros will not only help your business generate pay stubs, but you can also create W-4 forms, W-2 forms, 1099-NEC for contractors, and more. Using FormPros saves you time and helps you grow your business.

Create Your Pay Stub Now

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Ways Paystubs Can Improve Your Business

Most business owners think of paystubs as just a formality—a document handed out with every paycheck. But the truth is, how paystubs help your business goes far beyond basic compliance. When used effectively, paystubs can strengthen operations, build employee trust, and even lead to long-term cost savings. Here’s how detailed, accurate paystubs can actively improve the way you run your business.

1) Build Employee Trust and Retention

One of the clearest examples of how paystubs help your business is by fostering employee trust. When team members receive a detailed breakdown of their hours, wages, taxes, and benefits, they’re less likely to feel in the dark about their compensation. Transparency builds confidence. Employees want to know exactly what they’re earning and why certain deductions are taken from their pay.

This kind of open communication, even through something as simple as a paystub, contributes to higher job satisfaction. When people feel respected and informed, they’re more likely to stay with your company longer, reducing the cost and hassle of high employee turnover. It also prevents confusion or resentment, which can arise when workers don’t fully understand their paycheck.

Consistently providing clear and accurate paystubs shows that you value your staff and respect their right to know where their money is going. Over time, that clarity can lead to a more loyal and motivated workforce. If you’re looking for a low-cost way to improve retention, paystubs might be more powerful than you think.

2) Streamline Financial and Tax Reporting

Another example of how paystubs help your business is by making tax time much easier. When your payroll records are clean, consistent, and properly documented through paystubs, you’ll have a smoother process when filing business taxes or preparing year-end financial reports.

Each paystub provides a mini snapshot of employee compensation, including wages, deductions, tax withholdings, and any benefits. Having this information clearly laid out and organized reduces the risk of errors and ensures you’re reporting the correct figures to the IRS or your state agency. It also helps your accountant or payroll provider avoid scrambling through spreadsheets or correcting mistakes later on.

Beyond tax filing, paystubs can also help when applying for small business loans, grants, or funding. Lenders often want to see proof of consistent payroll, and showing a history of organized paystub records can make your business look more stable and responsible.

In short, paystubs are more than just a paper trail—they’re a proactive way to keep your financial records organized and ready for anything.

3) Reduce Payroll Disputes

Payroll disputes can quickly create tension, harm morale, and drain valuable time from your HR team. One of the clearest ways paystubs help your business is by reducing or even preventing these misunderstandings altogether.

Paystubs serve as a built-in audit trail, clearly documenting:

• Hours worked
• Regular and overtime wages
• Bonuses or commissions
• Deductions for taxes, insurance, or benefits

When this information is easy to read and consistently presented, employees are far less likely to raise concerns—and if they do, you’ll have the facts to resolve them quickly.

For example:

• An employee thinks they weren’t paid overtime? A glance at the paystub can confirm it was included.
• Someone questions a healthcare deduction? The amount and timing are clearly shown.

Issuing accurate, transparent paystubs shows your team that you’re organized, fair, and accountable. It builds trust and saves your HR and accounting teams from hours of back-and-forth. In the long run, fewer payroll disputes mean a smoother, more focused workplace—where everyone can spend less time on corrections and more time moving the business forward.

4) Help with Budgeting and Cash Flow Planning

Want to get a better handle on payroll expenses? This is another way how paystubs help your business: they provide the raw data you need to make smarter budgeting decisions.

By tracking regular pay, overtime, bonuses, and deductions, paystubs give you a month-by-month picture of labor costs. Instead of guessing how much payroll will eat into your cash flow, you can plan for it with real numbers. This kind of insight is especially valuable for seasonal businesses or startups trying to control expenses while growing.

Paystubs also help identify trends. Are you paying more overtime than expected? Are benefit contributions increasing quarter over quarter? These patterns can help you adjust staffing, streamline scheduling, or rework benefit packages to save money.

In short, paystubs turn payroll into something measurable and manageable. When you review them regularly, they become more than a record—they become a tool for forecasting and financial control. For business owners looking to stretch every dollar, accurate paystubs are a small investment with big returns.

5) Support Contractor and Freelance Relationships

Paystubs aren’t just for employees. While most people associate paystubs with W-2 workers, they can also be a game-changer in how you manage freelance and contractor relationships. This is one of the more overlooked ways how paystubs help your business stand out as professional and trustworthy.

Why it matters:

Independent contractors—especially those juggling multiple clients—appreciate clear, organized payment records. Even if you’re not legally required to provide paystubs for 1099 workers, offering them a simple statement with:

• Payment amount
• Project or service description
• Dates worked
• Any applicable fees or withholdings

…can go a long way in making your business look polished and legitimate.

The long-term benefits:

• Contractors can use these statements for tax prep or loan applications.
• It minimizes back-and-forth about payment details.
• You make it easier for great freelancers to want to work with you again.

In competitive industries where contractor talent is essential, this added transparency builds loyalty. You’re not just paying them—you’re showing that you run a well-structured operation they can rely on.

6) Enhance Professionalism

It’s often the small touches that leave a lasting impression. One subtle but powerful way paystubs help your business is by elevating its overall professionalism. Whether you’re applying for funding, attracting top talent, or building trust with vendors, organized payroll practices make you look like you know what you’re doing.

Well-designed paystubs show that you take payroll seriously and that you’ve invested in systems to manage your team properly. It reflects positively on your leadership and operations, especially if you’re still in the early stages of growth or scaling up.

Additionally, professional paystubs make a difference when presenting your business to outside stakeholders. Lenders, accountants, or potential investors may review your payroll as part of due diligence. Clean, consistent paystubs send a message: this business is reliable, compliant, and detail-oriented.

Even internally, polished paystubs can set the tone for your company culture. They help employees feel like they’re part of a legitimate, well-run operation—not a disorganized side hustle. That perception matters when you’re trying to build a team that sticks around and takes pride in their work.

7) Stay Compliant (and avoid fines)

Legal compliance isn’t optional. One of the most practical ways how paystubs help your business is by keeping you on the right side of employment laws. In many states, issuing paystubs is not just good practice—it’s a legal requirement.

What do these laws usually require? Paystubs must often include:

• Hours worked
• Gross and net wages
• Deductions (taxes, insurance, etc.)
• Pay period dates
• Employer name and contact info

Skipping any of these, even unintentionally, could put your business at risk for:

• Fines and penalties
• Employee complaints
• Potential lawsuits

*Click here for a guide to state-specific paystub regulations.*

Beyond the legal checklist —

Compliance isn’t just about avoiding fines—it’s about building trust. When you provide legally sound, transparent paystubs, you show employees that you respect their rights and take their compensation seriously. That kind of accountability reduces your legal exposure and boosts internal credibility.

A simple system with big protection —

Standardizing your paystub process is a small step that delivers long-term protection. By reviewing your stubs regularly for accuracy and legal completeness, you’re safeguarding your business from future complications—and building a more resilient operation.

Start Strengthening Your Business With Paystubs Today

As you’ve seen, paystubs do more than document wages—they support compliance, boost professionalism, build trust, and improve financial planning. These are just a few powerful ways how paystubs help your business grow stronger and operate more efficiently.

If you’re ready to streamline your payroll process and start reaping the benefits, FormPros can help. Our easy-to-use online tool lets you generate accurate, professional paystubs in minutes. Whether you’re managing employees, working with contractors, or just starting out, FormPros gives you the flexibility to create and download paystubs on demand—no complex software required.

Create Your Paystub Now

FormPros Has You Covered

Simplify your paperwork with FormPros! From creating paystubs, W-2s, and 1099-NEC forms to generating LLC Operating Agreements and even voided checks, our easy-to-use platform has you covered. Save time, reduce errors, and handle your business documents with confidence. Start now and see how FormPros makes professional form generation fast, affordable, and hassle-free!

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The Complete Guide to Generating an Independent Contractor Pay Stub

There are many benefits to being self-employed. But there are also a few challenges that traditional employees don’t experience. One of these challenges is keeping accurate records of your income to submit tax returns to the Internal Revenue Service (IRS). Luckily, the process of generating an independent contractor pay stub and 1099 pay stub documents doesn’t have to be complicated.

Create Your Pay Stub

In this article we’ll discuss pay stubs, why they are necessary for independent contractors, and how to create pay stubs online. 

Key Takeaways:

• Pay stubs are records of employee compensation that outline earnings and deductions. Employers usually provide pay stubs on a weekly or monthly basis.

• Independent contractors tend to be self-employed, which means they don’t receive pay stubs from a formal employer.

• 1099 pay stub templates can be used as proof of income and stable employment when you want to apply for a loan or rent a property.

• Pay stubs can also help independent contractors keep track of how much their clients have paid them—essential information that you’ll need for filing your tax returns.

• There are many online tools, like FormPros, that can help you generate 1099 paystub documents as an independent contractor.

Formal Employees -vs- Independent Contractors

Millions of workers are incorrectly classified as independent contractors each year. This simple mistake costs government agencies billions of dollars to fix. It also denies workers compensation for overtime, minimum-wage, and medical and family leave.

Before you make a similar mistake, let’s take a closer look at what the key differences are between employees and independent contractors.

Employees	Independent Contractors
Usually work a fixed number of hours	Define their own work schedules and hours
Have their taxes deducted from their income by their employers’	Self-employed people take responsibility for their own taxes
Work for a single company	Typically work for more than one company
Receive various sick leave, health and unemployment benefits	Do not receive any employment benefits other than wages

By definition, independent contractors are not formally employed by a particular company. This means that they do not receive pay stubs from an employer and have to make their own using an independent contractor pay stub template.

What is a PayStub? 

A paystub is a formal record of a person’s compensation. It outlines all of their earnings and taxable deductions for a specific pay period.

We’ll show you how to complete a 1099 pay stub template in more detail later in this article.

A pay stub generally reports the following information: 

• The independent contractor’s personal details, including their full name, postal address and Social Security number (SSN).
• The full name and address of the client that the work was completed for.
• The number of hours worked.
• Gross pay before deductions.
• Federal, state and local tax withholdings. 
• Net pay after deductions. 

Although paystub laws differ from state to state, many formal institutions require copies of these documents as proof of income and stable employment.

Why Would an Independent Contractor Need Pay Stubs? 

Pay Stubs Help You Keep Track of Your Earnings 

The main benefit of using pay stubs as an independent contractor is that they help keep track of how much your clients have paid you over a specific period of time. You’ll need this information when you fill out your 1099-NEC tax form at the end of the year. 

The 1099-NEC is the official tax return that independent contractors have to file with the IRS. This tax document reports your total income and the amount of federal and state income taxes withheld from your earnings. 

Having up-to-date pay stubs on hand can help you find payment records when you need to fill out tax forms at the end of the year. 

Create a 1099-NEC Now

*Remember, your pay stub information should match the data on your 1099-NEC.*

Pay Stubs Provide Proof of Income and Employment 

If you’re applying for a loan, renting, or buying a property, you’ll need to provide proof of income.

Lenders, landlords, and businesses typically require verification of stable income and employment before approving credit or rental agreements.

As an independent contractor, pay stubs serve as valuable proof of your earnings. They demonstrate your ability to meet financial obligations, such as loan repayments or rent, increasing your chances of approval.

How to Complete an Independent Contractor Pay Stub Template 

As an independent contractor, you don’t receive traditional pay stubs from an employer—but that doesn’t mean you don’t need them. Whether for proof of income, tax purposes, or client invoicing, creating your own pay stubs is essential.

With FormPros, you can generate professional pay stubs in just a few minutes. Below, we’ll walk you through the key details you’ll need to include when using our online pay stub generator.

Step 1: Enter Your Personal Information

Start by providing your full name and postal address, including your state and ZIP code.

Additionally, you may need to include your Social Security Number (SSN) or Contractor ID if applicable. These identifiers help with tax reporting and financial verification.

Step 2: Define Payment Periods and Dates

The pay period represents the timeframe during which you worked and earned income. For example, if you performed services between December 8th, 2025, and December 14th, 2025, this would be your pay period.

Independent contractors typically set pay periods as:

• Weekly
• Bi-weekly
• Semi-monthly
• Monthly

It’s important to choose a pay period that aligns with your work structure and complies with any state labor laws governing contractor payments.

The pay date, on the other hand, refers to the specific day your client is expected to compensate you for your services. You’ll also need to indicate whether you are paid on an hourly or salary basis.

• If hourly, specify your hourly rate and total hours worked during the pay period.
• If salaried, enter your fixed earnings for the specified period.

Step 3: List Your Deductions (If Applicable)

If you’re creating paystubs for personal financial tracking or tax filing, FormPros can automatically calculate your tax deductions.

Under Statutory Deductions, you can list:

• Medicare Tax
• Social Security (FICA) Tax
• Federal and State Income Taxes

However, if you’re using the pay stub for client invoicing, you can skip this section, as independent contractors are typically responsible for their own tax withholdings.

Step 4: Calculate Your Net Pay

Once you’ve entered your earnings and deductions, FormPros will automatically compute your net pay—the amount you take home after all applicable taxes and deductions have been applied.

With these steps completed, you’ll have a professional, accurate pay stub that can be used for record-keeping, loan applications, rental agreements, and more.

Common Mistakes to Avoid 

When generating a pay stub, accuracy and proper record-keeping are essential. Small errors can lead to financial discrepancies, tax issues, and difficulties when verifying your income. Here are some common mistakes to watch out for—and how to avoid them.

1) Providing Incorrect Information

One of the most frequent mistakes is failing to enter accurate details on your pay stub. This can happen when:

• Pay period dates are omitted or incorrect.
• Earnings, hours worked, or payment calculations are misreported.
• Deductions for taxes or other withholdings are miscalculated.

These mistakes can cause issues when filing your 1099-NEC at the end of the tax year, as you may have to recalculate and reconcile your income totals, leading to unnecessary stress and potential IRS scrutiny. Always double-check your entries before finalizing your pay stub.

2) Using Outdated or Incorrect Tax Data

Tax laws frequently change, and failing to use current tax rates can result in inaccurate calculations. Common errors include:

• Using outdated federal or state tax rates when calculating deductions.
• Applying the wrong Social Security and Medicare (FICA) tax percentages.
• Forgetting to account for state-specific tax requirements.

Incorrect tax deductions don’t just affect your paystubs—they can also lead to errors on tax filings, requiring costly corrections and possibly resulting in IRS penalties. To avoid this, stay informed about tax updates or use a reliable pay stub generator that applies the latest tax rates automatically.

3) Failing to Keep Pay Stub Records

Many independent contractors don’t maintain proper records of their pay stubs after creating them. This can cause serious issues when:

• Applying for a loan, mortgage, or rental property—since lenders and landlords require proof of income.
• Filing taxes—as accurate financial records help ensure proper reporting and avoid IRS audits.
• Tracking business income—for budgeting, expense management, and tax deductions.

To prevent loss of important documents, we recommend:

1. Using a pay stub generator with record-keeping features to store and organize your pay history.
2. Saving digital copies of your pay stubs on your computer, cloud storage, or external hard drive.
3. Keeping physical copies in a secure folder for quick access when needed.

Create Flawless Pay Stubs Every Time 

At FormPros, we understand that independent contractors need a simple, hassle-free way to manage their independent contractor payroll—without wasting time on complicated calculations or manual paperwork. That’s why we’ve built an automated, user-friendly, and efficient pay stub generator designed to streamline the process.

Just enter a few basic details about your business, and our system will guide you through a quick set of questions about your earnings and pay dates. Within minutes, our platform will automatically calculate your taxable deductions, ensuring accuracy and compliance with the latest tax rates.

The best part? FormPros is a cost-effective alternative to hiring an accountant or payroll service—giving you professional, reliable pay stubs at a fraction of the cost. Try FormPros today and experience just how easy it is to generate accurate, professional pay stubs in minutes!

Create Your PayStub Now

FormPros Has You Covered

Simplify your paperwork with FormPros! From creating paystubs, W-2s, and 1099-NEC forms to generating LLC Operating Agreements and even voided checks, our easy-to-use platform has you covered. Save time, reduce errors, and handle your business documents with confidence. Start now and see how FormPros makes professional form generation fast, affordable, and hassle-free!

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Self-Employed? Here’s How to Show Proof of Employment

Full-time employees with a contract often wonder how to show proof of employment—usually by requesting a verification letter from their company’s human resources department.

For self-employed individuals however, such as freelancers, proving employment can be more challenging. Without a traditional employer, they must rely on alternative documentation to verify their income and work history.

Employment verification plays a crucial role when applying for a home, car, or personal loan. In this article, we cover everything you need to know about how to show proof of employment, including what it is, why it’s important, and how to provide it.

Who Qualifies as a Self-Employed Worker?

Self-employed refers to independent contractors and sole proprietors who report self employed proof of income. If you’re self-employed, you run your own business instead of working for an employer.

According to the Internal Revenue Service (IRS), a self-employed person in the U.S. is someone who:

• Partakes in trade or business as a sole proprietor or an independent contractor
• Is part of a partnership involving a trade or business
• Is in business for themselves, including but not limited to part-time endeavors

Self-employed individuals may work as the following:

What Is Proof of Employment?

Proof of employment is a form of documentation that hiring companies or financial institutions request to confirm an individual’s work history or current employment status. 

There are many reasons why a third party may want to verify your employment, some of which include: 

Loan Applications: 

If you want to apply for a loan, lenders will want to see whether or not you will be able to pay back the funds based on your monthly income. There is a good chance that they will want you to provide proof of self employment or an income verification letter. This information helps lenders understand how you manage your monthly payments and how a loan could impact your cash flow.

Create a Loan Agreement

Once lenders understand this, they can determine the repayment schedule in the loan terms. 

Applying to Rent:

Property owners who lease out their homes or apartments want to ensure that new tenants will be able to afford the rent. With remote work becoming popular, landlords may also want to get an idea of how you will use the property.

For example, whether you will be on the property throughout the day or if you’ll be working elsewhere.

The “how to show proof of employment process” helps the landlord get a better understanding of what kind of work you do and if you have a stable income to cover the rent. 

Seeking Another Job: 

If you’re looking for a new job, it’s likely that salary negotiations will take your current or most recent pay records into consideration.

A new employer often requests an employment verification letter to confirm your salary information.

Create an Employment Verification Letter Now

Providing prospective employers with insight into your previous compensation can enhance their understanding of your experience and market value. However, as of February 2025, 21 states and the District of Columbia have implemented salary history bans. These laws prohibit employers from inquiring about an applicant’s past earnings, including previous bonuses or benefits. The primary objective of these bans is to eliminate pay disparities affecting women and minorities by preventing historical salary inequalities from influencing future compensation decisions.

Credit Card Applications:

Financial institutions weigh up many factors when they consider requests for credit cards, including the applicant’s current employment and salary.

A verification of employment shows credit companies that there is a good chance that you will be able to meet your debt obligations and payments in a timely manner.

Although your current salary doesn’t influence your FICO Credit Score, it does give creditors a better idea of how likely you are to afford your repayments. 

How to Show Proof of Self-Employment

HR departments at large businesses have likely dealt with proof of employment requests in the past and may have a system in place to issue these documents.

However, if you’re self-employed, you may need to create these records yourself.

Now that you have a better idea of what proof of employment is and why it’s necessary, let’s take a closer look at some other ways that you can provide self employed proof of income.

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-Annual Tax Returns-

Form 1099-NEC reports the income independent contractors earn.

Companies must file a copy with the IRS and send another to the contractor. This is so the IRS knows how much tax revenue to expect from self-employed workers. It’s important to note that independent contractors who earned more than $600 from a business should receive a Form 1099-NEC. 

Not only does the 1099-NEC serve as a record of an independent contractor’s salary verification, but it also gives them a form to attach their Form 1040 to. Form 1099-NECs are also used for self employment verification letter purposes. This is because it provides physical proof of self-employed income, the amount earned and, where it came from.

January 31st is the deadline for providing independent contractors with a copy of form 1099-NEC. It is also the deadline for providing employees with Form W-2. Also known as the Wage and Tax Statement, the Form W-2 is distributed by employers to their formal staff at the end of each tax year.

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-Pay Stubs- 

A Pay Stub is a written, itemized statement that documents how much a person earned during a specific pay period. 

There are a few different ways that self-employed workers can receive and create pay stubs. One option is to contact the HR department at the company you provided services for and ask them for a copy. You can also produce your own pay stubs online with a company like FormPros. We’ll go into more detail about our efficient document generator later in this article. 

For self-employed workers, the following basic information is usually provided on a paystub: 

• The name of the company they provided services for, as well as its address.
• If applicable, the independent contractor’s job title.
• The number of hours worked during the pay period.
• The total wages paid before the self-employed worker’s deductions.
• Federal, state and local taxes withheld from the individual contractor’s gross earnings.
• Other withholdings, including the employee’s share of insurance premiums. 
• Net pay. 

Create a Paystub Now

Pay stubs are useful because they can serve as a proof of income letter self-employed individuals need when applying for loans or proving financial stability.

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-Bank Statements-

Bank statements—also known as account statements—are documents that are typically sent by a financial institution to their account holders each month. The statement is a summary of all the transactions that the account holder made during a particular period of time. 

This statement contains bank account information such as account numbers, and a detailed list of the holder’s total income and expenses. For lenders and financial institutions, a bank statement can provide proof that the individual can afford to meet their repayments. 

Bank statements can sometimes be used to supplement a self employment letter, proving income alongside a pay stub or reference letter. 

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-Employment Verification Letter-

An Employment Verification Letter is a document written by a current or past employer that confirms the employment status of a former or current employee.

Employment verification letters can be requested by potential employers, or various other governmental agencies and financial institutions. 

Independent contractors can use self employment letters to show when they worked for a particular company, what their duties were and what they were paid.

This letter can also be submitted with pay stubs, tax returns or bank statements as employment confirmation for independent contractors. 

Create an Employment Verification Letter Now

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Making Proof of Employment Easy

Proving your employment status may be more important than you realize—whether for securing loans, renting a home, or handling tax filings. However, managing the paperwork can be time-consuming, especially for independent contractors who juggle multiple responsibilities.

At FormPros, we understand the value of your time and money. That’s why we’ve designed an intuitive online form generator that lets you create customized pay stubs, Form 1099-NECs, and employment verification letters in minutes.

Even traditionally employed workers can quickly generate professional employment verification letters with our platform.

Why Choose FormPros?

✅ Simple and user-friendly – No technical skills required
✅ Prevents costly errors – Ensures accuracy and compliance
✅ 100% safe and secure – Your data is protected
✅ Legally binding documents – Trusted by businesses and professionals
✅ Money-back guarantee – Risk-free experience

The best part? FormPros costs a fraction of what you’d pay for an accountant or payroll service. Plus, our subscription plan lets you create unlimited documents at a lower cost.

Try FormPros today and see how easy it is to generate accurate, professional documents—effortlessly.

Create a Pay Stub Now

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Paystub Calculator: How to Calculate Your Take Home Pay

Payday is always exciting, but do you ever find yourself unsure of how much your paycheck will actually be? Many workers experience this uncertainty because they don’t fully understand the deductions taken from their earnings each pay period, including taxes, Social Security, and Medicare. Using a paystub calculator can help you estimate your take-home pay in advance, giving you a clearer picture of your earnings and deductions. If you’ve ever dealt with errors in your paycheck, a missing paystub calculator can also help verify the accuracy of your payroll.

In this guide, we’ll break down what’s included in your pay stub, explain the deductions, and show you how to calculate your pay stub on your own. Keep reading to take control of your earnings!

What is Included in a Paystub? 

A pay stub is a detailed breakdown of an employee’s earnings and deductions, provided each time they get paid. It outlines key financial information, including wages earned, taxes withheld, and other deductions. Each pay stub includes:

1) Current and Year-to-Date (YTD) Earnings – Displays the employee’s earnings for the specific pay period and the total accumulated earnings for the year.

2) Deductions – Lists amounts withheld from earnings, including:

• Employee Tax Deductions – Federal income tax, state and local taxes (if applicable), and FICA tax (Social Security and Medicare).
• Benefits & Other Deductions – Contributions to employer-sponsored benefits like health insurance, retirement plans, or charitable donations.
• Employer Contributions – The employer’s share of benefits and FICA tax contributions.

At the bottom of the pay stub, the net pay (take-home pay) is shown—this is the amount deposited into the employee’s account after all deductions.

Create Your Paystub Now

How to Calculate Net Income 

Before you can accurately determine your net pay, it’s essential to understand how to read your pay stub and identify the key details that affect your final paycheck.

Information Used to Generate a Pay Stub

Employers create pay stubs using the following details:

• Payroll cycle (weekly, bi-weekly, semi-monthly, or monthly)
• Gross wages (total earnings before deductions)
• Tax withholdings (federal, state, and local, if applicable)
• Benefit deductions (pre-tax and post-tax contributions)
• Employee allowances (as specified on the employee’s W-4 form)

Once you understand what’s included in your pay stub, follow these steps to calculate your pay stub and determine your take-home pay.

1 — Deduct Pre-Tax Contributions

Determine your taxable income by subtracting any pre-tax deductions from your gross wages. Pre-tax deductions reduce your taxable income, lowering the amount of taxes withheld. These may include:

• Health insurance premiums
• 401(k) or other retirement contributions
• Commuter assistance plans

Using a pay stub calculator can make this process much easier, helping you quickly assess your deductions and taxable income.

2 — Withhold Applicable Taxes

After deducting pre-tax contributions, taxes must be withheld from the remaining income. This typically includes:

• Federal income tax (based on tax brackets and W-4 allowances)
• State and local taxes (varies by location; some states do not have an income tax)
• FICA Tax (Social Security & Medicare)
  • Social Security tax: 6.2% (only applied to earnings up to a certain limit, e.g., $176,100 in 2025)
  • Medicare tax: 1.45% (applies to all earnings)
  • Employers match these contributions, paying the same amount to the IRS.

Employers match these contributions, paying the same amount to the IRS. To ensure you’re withholding the correct amount, a pay stub tax calculator can be a valuable tool.

3 — Deduct Post-Tax Contributions

After taxes are withheld, any post-tax deductions are subtracted. These are voluntary deductions for benefits or contributions not eligible for pre-tax status, such as:

• Disability insurance
• Life insurance
• Additional retirement plan contributions
• Charitable donations

Using a paycheck stub calculator can help track these deductions accurately, ensuring your net pay reflects the correct take-home amount.

4 — Apply Wage Garnishments (if applicable)

Employers may be legally required to deduct wage garnishments for court-ordered payments, including:

• Unpaid taxes
• Child support or alimony
• Loan repayments
• Credit card debt
• Medical bills

If you’re missing details on your deductions, a missing paystub calculator can help you reconcile the numbers.

5 — Final Calculation: Your Net Pay

After subtracting pre-tax deductions, taxes, post-tax deductions, and garnishments (if applicable), the remaining amount is your net pay—the actual amount deposited into your bank account.

Example: How to Calculate Your Paystub

To better understand the process of calculating your pay stub, let’s walk through a simple example.

Alex earns an annual salary of $75,000, and his company processes payroll bi-weekly (26 pay periods per year). To determine his gross pay per period, we divide:

$75,000 ÷ 26 = $2,884 (gross pay per pay period)

Deductions:

• Federal Taxes: Based on the allowances from his W-4, 20% of his gross pay is withheld for federal taxes:

$2,884 (gross pay per pay period) × 20% = $577

• State Taxes: Alex lives in a state with no income tax, so no state taxes are deducted.

• Health Insurance: Alex contributes $50 per pay period toward his company’s health insurance plan.

Net Pay Calculation:

Alex’s net pay (take-home pay) is calculated as follows:

$2,884 (gross pay) – $577 (federal tax) – $50 (health insurance) = $2,257 (net pay)

*This example applies to salaried employees, whose pay remains consistent each period. Hourly employees will also see details on total hours worked, overtime wages, and applicable deductions on their pay stub.*

His pay stub will include all of these details for both the current payroll period and the year-to-date (YTD) totals. For a quick and easy way to verify your earnings, try using a check stub calculator to ensure all numbers align correctly.

FormPros Has You Covered!

Knowing how to read and calculate your pay stub ensures you have full transparency over your earnings, deductions, and take-home pay. By staying informed, you can catch potential errors, plan your finances more effectively, and adjust tax withholdings if necessary.

Create Your Pay Stub Now

Simplify your paperwork with FormPros! From creating paystubs, W-2s, and 1099-NEC forms to generating LLC Operating Agreements and even voided checks, our easy-to-use platform has you covered. Save time, reduce errors, and handle your business documents with confidence. Start now and see how FormPros makes professional form generation fast, affordable, and hassle-free!

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How Do I Recover My Lost Pay Stubs?

Lost Your Pay Stubs? Here’s How to Get Them Back Quickly

If you’re thinking of buying a new home or applying for a business loan, you will need pay stubs to provide proof of income and employment. Although many people try to keep their old pay stubs filed in a safe place, they often get lost, destroyed or accidentally thrown out.

In this article, we provide a step-by-step guide on how to access old pay stubs and recover lost paycheck stubs. This includes who you will need to contact and which documentation is usually required. 

Firstly, What Is a Paystub? 

Pay stubs are physical, itemized records of an employee’s wages and deductions for a specific pay period. A paycheck stub documents: 

• The number of hours the employee worked, including overtime.
• The total wages or salary that the employee was paid before tax deductions.
• All current and year-to-date federal, state and local taxes withheld from the employee’s gross pay.
• Other withholdings, such as the employee’s share of insurance premiums.
• The employee’s net pay. This refers to the total amount earned after deductions. 

What Are Pay Stubs Used For? 

–Employers–

Although there is no federal law that requires employers to issue their staff with pay stubs, the Fair Labor Standards Act states that employers should “keep employee time and pay records.”  Many employers use pay stubs to compare wage and salary expenses with other labor costs in their accounting records. 

–Employees–

For employees, pay stubs are used as proof of stable income when applying for credit, taking out a loan, renting or buying a property. It’s also important that employees know how to find old pay stubs when filing their tax documents and returns.

–Independent Contractors/Self-Employed Workers–

By definition, contractors are not employees and do not have taxes withheld from their pay. Instead, contractors receive 1099 forms at the end of the year to verify their income. In these cases, pay stubs are necessary to verify that the amount on the 1099 form is accurate. 

Self-employed people also use pay stubs to keep track of their business and personal expenses for their tax returns. It’s also important that they know how to get pay stubs when applying for business funding, making financial decisions, or preparing for an audit.

How to Recover Lost Pay Stubs

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Option 1: Download a Copy from the Company’s Payroll Software 

• Many companies use payroll software to generate pay stubs for their employees. 
• All you would need to do is sign into the payroll software and download a copy of the missing pay stub. 
• However, this is not always possible due to security, technical or privacy issues. 

If you’re wondering how to get old pay stubs online, checking your payroll system is the easiest first step.

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Option 2: Request a Copy from the Payroll or Human Resources Department 

Compared to the option above, recovering a lost pay stub this way is a bit more complicated. Below, we have provided a step-by-step guide to help you make sense of the process. 

Step 1: 

The first step is to contact human resources or the payroll office where the pay stub was printed. You will need to ask them what the process is for requesting copies of pay stubs, if there is a processing fee, how long it will take, and what documentation you need to submit. How to get old pay stubs depends on the company’s policies, so be sure to ask about their specific requirements.

Step 2: 

Next, you’ll have to fill out a pay stub request form. This document is a formal request of your payroll records. To ensure that you provide all of the necessary information, here is a list of details you should include: 

• Your full name 
• Social Security number 
• Employee Identification Number (EIN)
• The dates for the applicable pay periods you are looking for 
• Your current home address where the pay stub should be sent 

Step 3: 

Once you have completed the request form, email, fax or post it to the correct address and department. If there is an administrative or processing fee, make sure that you pay it on time and send the proof of payment to the relevant payroll or human resource department. 

Step 4: 

If you sent the pay stub request form electronically, call the HR or payroll department on the same day to make sure that they have received it. Similarly, if you sent the documentation via the post, contact them within 3 to 5 business days to confirm receipt. Next, wait for your pay stub to arrive in your inbox, post box or collect from the relevant office. 

If you need to know how to get old pay stubs online it may require additional verification steps, so ask your HR or payroll team if they provide digital access.

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Create Paystubs Online

Pay stubs are an important way to provide proof of your income or employment when applying for a loan, filing a tax return or buying and renting a property. In some cases, it may not be possible to recover pay stubs. This is often the case when the record never existed in the first place or if a company goes bankrupt. 

If you’re wondering how to access old pay stubs but can’t retrieve them from your employer, “how to get old paystubs” may involve creating them yourself. Luckily, FormPros’ paystub generator allows you to easily create these documents online. 

All you need to do is provide basic contact details for the employer and then our intuitive form will ask you some simple questions about salary, current pay date and the pay period. Our user-friendly platform can even help you calculate your federal and state income taxes, FICA, Medicare and Social Security withholdings. 

Try our pay stub generator today and see why businesses across the country love it. 

Create Your Pay Stub

FormPros Has You Covered

Simplify your paperwork with FormPros! From creating paystubs, W-2s, and 1099-NEC forms to generating LLC Operating Agreements and even voided checks, our easy-to-use platform has you covered. Save time, reduce errors, and handle your business documents with confidence. Start now and see how FormPros makes professional form generation fast, affordable, and hassle-free!

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When to Use a Power of Attorney?

A Power of Attorney (POA) is a legal document that allows someone you trust to make decisions on your behalf—whether financial, medical, or legal—when you’re unable to do so yourself. Whether due to illness, absence, or incapacity, a POA ensures your personal or financial affairs continue to be managed smoothly. In this guide, we’ll explain when to use a power of attorney, how POAs work, and what steps you need to take to set one up properly.

Let’s start with the basics….. 

What is a Power of Attorney? 

A Power of Attorney (POA) is a legal document that grants one person—known as the agent or attorney-in-fact—the authority to act on behalf of another person, called the principal. This authority can cover a wide range of responsibilities, including managing finances, handling real estate transactions, making medical decisions, or signing legal documents.

There are several types of POAs, each designed for different situations. For example, a General POA provides broad powers, while a Limited POA grants authority for specific tasks or for a limited time. A Durable POA remains in effect even if the principal becomes incapacitated, making it a common choice for long-term planning.

We will cover several types of Power of Attorneys later in this article.

Why Would You Need a Power of Attorney?

There are many situations where having a Power of Attorney in place can be essential. Life is unpredictable, and a POA ensures that someone you trust can step in to handle your affairs when you’re unable to do so yourself. Here are some common reasons why people create a POA:

• Medical Incapacity: If you become seriously ill, injured, or mentally incapacitated, a POA allows a trusted person to make healthcare or financial decisions on your behalf.
• Travel or Deployment: If you’re frequently away—whether for work, military service, or extended travel—a POA can allow someone to manage your affairs in your absence.
• Aging or Long-Term Care: Older adults often use a POA to appoint someone who can help manage their financial matters or make medical choices as their needs change.
• Estate Planning: A POA is a key part of any solid estate plan, ensuring continuity and protection of your assets.
• Business Operations: Entrepreneurs may use a POA to authorize someone to sign contracts or make decisions during their absence.

Understanding why you might need a power of attorney helps you take proactive steps to protect your finances, health, and peace of mind.

How Do You Set Up a Power of Attorney? 

Setting up a Power of Attorney is a straightforward but important legal process. Here are the key steps to follow when creating a POA:

1) Choose the Right Type of POA

– Decide whether you need a General, Limited, Medical, or Durable Power of Attorney. Each type serves different purposes based on the level of authority and duration you want to grant.

2) Select a Trusted Agent

– Choose someone responsible and trustworthy to act on your behalf. This person will have significant control over your personal, financial, or medical matters, depending on the POA type.

3) Use the Correct Legal Form

– You can draft a POA using a state-specific legal form, hire an attorney, or use an online legal document service. Make sure the document complies with your state’s laws.

4) Specify Powers and Limitations

– Clearly outline what the agent can and cannot do. You can tailor the POA to specific tasks, dates, or conditions (e.g., only in the event of incapacity).

5) Sign and Notarize the Document

– Most states require your POA to be signed in the presence of a notary public and/or witnesses. This step is essential to make the document legally valid.

6) Distribute Copies to Relevant Parties

– Once complete, share copies of the POA with your agent, attorney, financial institutions, or healthcare providers as needed.

*You can revoke a Power of Attorney at any time, as long as you’re mentally competent. Simply notify your agent in writing and update any institutions holding the document.*

Types of Power of Attorney

There are several types of Power of Attorney, each designed for specific situations. Choosing the right one depends on what kind of authority you want to give—and for how long. Here’s a breakdown of the most common types:

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General Power of Attorney

Grants broad authority to the agent to manage your financial and legal affairs. It’s often used when you’re temporarily unavailable but still mentally capable. This type becomes invalid if you become incapacitated.

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Durable Power of Attorney

Stays in effect even if you become mentally or physically incapacitated. This is a popular choice for long-term planning and is often used in healthcare or estate planning scenarios.

Create Your Durable Power of Attorney

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Medical (or Healthcare) Power of Attorney

Allows your agent to make medical decisions on your behalf if you’re unable to do so. This is often paired with a living will or advance healthcare directive.

Create Your Power of Attorney for Healthcare

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Limited (or Special) Power of Attorney

Grants authority for a specific task or limited time—for example, signing documents while you’re out of the country. Once the task is completed, the POA expires.

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Springing Power of Attorney

Only goes into effect under specific conditions, such as a doctor certifying that you are incapacitated. This type can help preserve autonomy until it’s truly needed.

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Important Things to Remember 

Create a Power of Attorney Today

It’s never too early to create a Power of Attorney—life can change in an instant, and being prepared means peace of mind. A POA ensures that your finances, healthcare, and personal matters are managed by someone you trust if you become incapacitated or unable to act on your own. By appointing a reliable agent, you’re taking a crucial step in protecting your future and maintaining control, even in uncertain times.

Ready to put a plan in place? FormPros makes it simple to create the right legal documents for your needs. Whether you need a Durable General Power of Attorney, a Medical Power of Attorney, or a Living Will, we provide easy-to-use tools to help you secure your future—on your terms.

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