Category: General

How to Easily Get a Copy of Your W-2

How to Retrieve a Lost or Missing W-2 Form: Easy Options for Employees & Contractors

As an employee, you can expect your employer to provide a W-2 form at the beginning of each year, detailing your earnings and tax withholdings from the previous year. However, there may be times when you need a copy of your W-2 from a previous job. While it’s best to keep records of all tax documents, it doesn’t always happen. Fortunately, there are several ways to retrieve a lost or missing W-2.

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The same retrieval process generally applies to 1099 forms issued to independent contractors. However, the circumstances in which you may need a 1099 differ from those requiring a W-2.

Reasons to Retrieve an Old W-2 Form 

There are several reasons to retrieve an old W-2 form. These reasons include: 

• Filing Back Tax Returns: If you failed to file taxes in previous years, the IRS may flag you as a non-filer and pursue back tax returns. This can lead to penalties and fees. How to get old W2 forms from previous employers or the IRS is essential for ensuring accurate filings and restoring compliance.
• Applying for Loans: Lenders often require proof of stable income when evaluating loan applications. Past W-2 forms can verify your earnings and employment history. If you’re wondering how to get W2 from previous employer, it’s usually best to reach out directly to their payroll department first.
• Legal Reasons: W-2 forms may be needed for legal proceedings, such as calculating child support payments or documenting income in a lawsuit. If you don’t have access to them, you may be asking how to get W2 from old job, which often involves either contacting your previous employer or requesting a transcript from the IRS.
• Tracing Income History: Whether for personal or professional reasons, W-2s provide a reliable record of your earnings, employer contributions to health insurance, and retirement plan contributions. If you’ve lost yours, you might be searching for how can I get a copy of my W2 online, which the IRS offers through its Get Transcript tool (explained below).

You don’t always need a specific reason to retrieve an old W-2. If you discover a missing form, it’s best to obtain a copy—having it on hand can save you time and stress in the future.

How to Get a Copy of Your Old W-2 

There are a few ways to find my W2, but before making a request, determine the exact year(s) you need.

• Contact Your Former Employer: If you’re still in touch with your previous employer, reach out to their payroll or HR department to request a copy. Employers are required to keep W-2 records for at least four years, though some retain them longer. Keep in mind that some employers may charge a fee for providing copies. If you’re trying to find my W2 from years past, this should be your first step.
• Request from the IRS: If you can’t reach your former employer, the IRS offers an alternative. The IRS maintains W-2 records for the past ten years, making it likely they have what you need. If you’re asking how can I get my W2 online for free, the IRS provides access through their Get Transcript service. These records, along with other third-party information statements from employers and financial institutions, become available after the April tax filing deadline.

By exploring these options, you can obtain the necessary W-2 forms to meet tax, financial, or legal requirements.

Getting a Copy of Your W-2 From the IRS 

If you need a copy of your W-2, the IRS provides several options:

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Tips for Getting a Copy of Your W-2 Form 

• To avoid the hassle of trying to contact the IRS, save all copies of W-2 forms in a safe space so that you can refer to them when needed. Always make a copy of the forms you send to the IRS every tax season.

• If you’ve misplaced your W-2, you might be wondering how to get old W2 documents from the IRS. The fastest way is to use their online transcript tool, which allows you to retrieve wage and income statements quickly.

• If you use a tax professional to complete your taxes, you can also try contacting them for copies of your W-2. However, for those looking for how can I get my W2 online for free, the IRS’s Get Transcript tool remains the best option.

How to Get Your W-2 

Keeping copies of your W-2 forms is essential for tracking your income, tax deductions, benefits, and retirement contributions. However, if you discover that you’re missing a W-2 and need it, you can request a transcript from the IRS using several different methods.

That said, the easiest solution is to have your forms readily available when you need them. Consider setting up a more organized filing system to keep track of your tax documents efficiently.

FormPros simplifies the process by allowing users to instantly generate W-2 forms and other essential tax documents, saving time and effort.

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What is an LLC Operating Agreement and Do I Need One?

Starting a business is exciting, but it can also be confusing and daunting. If you’re unsure whether you should create an Operating Agreement for your Limited Liability Company (LLC), the answer is yes. Do you need one? 100%. Absolutely. Every business that registers an LLC should create an Operating Agreement early on—ideally while you’re still drafting your business plan.

You’ve probably heard about something called an Operating Agreement—but what is it exactly? And why is it so important? By the end of this article you will be able to answer these questions, and ultimately have a better understanding of the purpose and importance of an LLC Operating Agreement.

Let’s begin with the basics…..

What is an LLC?

An LLC, or Limited Liability Company, is a popular business structure that blends the flexibility of a sole proprietorship or partnership with the liability protection of a corporation. In simple terms, it helps separate your personal assets from your business assets—so if your business runs into legal or financial trouble, your personal savings, home, or car typically aren’t at risk.

LLCs are easy to form, require less paperwork than corporations, and offer pass-through taxation—meaning profits go directly to the owners without being taxed at the business level. Whether you’re a freelancer, startup founder, or small business owner, an LLC can be a smart way to formalize your business while keeping things relatively simple.

What is an LLC Operating Agreement?

An LLC Operating Agreement is a legal document that outlines how your LLC will operate. It covers the rules, responsibilities, and ownership structure of your business—sort of like a user manual for how your company runs.

It can include details like:

• How profits and losses are divided
• Each member’s ownership percentage
• Voting rights and decision-making processes
• What happens if a member leaves or the business dissolves
• Day-to-day operations and responsibilities

Even if you’re the only owner (a single-member LLC), an Operating Agreement helps protect your limited liability status and shows that you’re running a legitimate business. For multi-member LLCs, it’s essential to avoid confusion, disputes, and misunderstandings down the road.

What Sections Does an LLC Operating Agreement Contain?

While the exact contents can vary depending on your state or how complex your business is, most LLC Operating Agreements include a few core sections:

1. Basic Company Information: Name of the LLC, address, formation date, and registered agent details.

2. Ownership Structure: Lists each member (owner) of the LLC and their percentage of ownership.

3. Capital Contributions: Details what each member is contributing to the business—money, property, services, etc.

4. Management and Voting: Explains whether the LLC is managed by its members or by appointed managers, and how decisions will be made.

5. Profit and Loss Distribution: Outlines how the LLC will allocate profits and losses among members.

6. Membership Changes: Covers what happens if a member wants to leave, sell their interest, or passes away.

7. Dissolution: Describes the process for winding down the LLC if the business closes.

These sections help set expectations, reduce confusion, and protect everyone involved. Even if your LLC is small or just getting started, having these topics clearly documented can make a huge difference as you grow.

LLC Operating Agreement… Do I Need One?

Short answer? Yes. Whether you’re flying solo or launching a business with partners, an LLC Operating Agreement is one of the smartest documents you can create. Here are some common situations where it becomes especially important:

(1) You’re a Solo Business Owner (Single-Member LLC) –

You might think, “Why do I need an agreement if I’m the only member?” But even single-member LLCs benefit from one. It helps legitimize your business in the eyes of banks, investors, and even the IRS. It also strengthens your limited liability status—helping protect your personal assets in case of legal trouble.

(2) You’re Starting a Business with Friends or Family

Maybe you’re launching a small business with a few trusted partners. An Operating Agreement lays out who owns what, how profits are shared, and how decisions get made—so everyone is on the same page. It’s a friendship-saver and a business-essential.

(3) You’re Opening a Business Bank Account

Many banks will require a copy of your Operating Agreement to open an account in your LLC’s name. If you don’t have one, it could slow you down or get your application denied.

(4) You Want to Attract Investors or Apply for Loans

Lenders and investors often ask to review your Operating Agreement to understand your ownership structure and how your business is run. Having one shows that you’re organized and serious.

(5) You’re Preparing for Growth

As your business grows, things like adding new members, adjusting profit splits, or handling disputes can get complicated. An Operating Agreement gives you a framework for managing these changes smoothly.

(6) You Want to Avoid State Default Rules

If you don’t have an Operating Agreement, your state’s default LLC rules take over—and they might not be ideal for your situation. Creating your own agreement gives you more control over how your business operates.

Final Thoughts

An LLC Operating Agreement isn’t just a formality—it’s a foundational document that protects your business, your relationships, and your future. Whether you’re a solo entrepreneur or part of a growing team, taking the time to put your agreement in writing can save you countless headaches down the road.

Ready to create your own Operating Agreement? FormPros makes it easy to generate a legally binding and comprehensive LLC Operating Agreement tailored to your business and your state. Just answer a few simple questions and get a custom document you can trust—no legal jargon or guesswork required.

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When to Use a Loan Agreement Letter

Most people borrow money or take out a loan at some point in their life. A car loan, a mortgage to finance a home purchase, a student loan to cover tuition and other education fees, or a short-term bank loan to cover any number of planned or unexpected expenses—we all borrow money at some point, which is why having a well-documented agreement letter for borrowing money is so important.

The truth is loans are everywhere, and so are loan repayment agreements. While most people are familiar with more detailed loan contracts, such as mortgages, credit card agreements, and auto loans, there is some confusion when it comes to basic letters for loan agreements.

To help clear things up, we are going to explain when you should use a letter of loan agreement and how they work.

What is a Loan Agreement Letter?

A letter for loan agreement, also known as a “loan contract,” is a legally binding document that outlines the terms of a financial arrangement between a lender and a borrower. The lender drafts the agreement, specifying the loan terms and conditions, while the borrower agrees to and signs the document, making it enforceable.

Beyond serving as legal proof of the loan, this document details key terms such as the interest rate, repayment schedule, and due dates. A well-drafted letter of loan agreement ensures that both parties clearly understand their obligations, minimizing the risk of disputes.

A loan agreement letter must comply with state and federal regulations to protect both the lender and the borrower in case of non-compliance. Once both parties sign the document, it serves as official confirmation of the loan’s terms and the commitment to repay the borrowed funds.

When Should You Use a Loan Agreement Letter?

Loan agreements are often associated with formal contracts from financial institutions, such as mortgages, auto loans, student loans, and credit card agreements. However, many financial transactions fall outside these structured arrangements, making a letter for loan agreement essential for clarity and legal protection.

Borrowing and lending money, even between trusted parties like family members or friends, can become complicated. Disagreements over loan terms and conditions can strain relationships and, in some cases, lead to legal disputes. A well-drafted loan agreement letter ensures that both parties understand their obligations before any money exchanges hands, reducing the risk of misunderstandings.

Common situations where a Loan Agreement Letter is necessary:

1) Business-to-Business (B2B) Loans –

• When one business lends money to another, a loan agreement provides legal protection for both parties. For example, if a financial institution provides funding to a startup, or one company offers a short-term loan to another for operational expenses, a written letter of loan agreement outlines repayment terms and safeguards against potential disputes.

2) Business-to-Individual Loans –

A loan agreement is essential when a business lends money to an individual. This includes:

• Personal Loans from Financial Institutions – When an individual borrows money from a bank, lender, or credit union, the agreement formalizes interest rates, repayment schedules, and penalties for non-payment.
• Real Estate Loans – When an individual borrows money from a private real estate lender, a loan agreement ensures legal compliance and clear repayment terms.

3) Individual-to-Individual Loans –

Even informal loans between family members, friends, or acquaintances should be documented. While these agreements may feel personal, they can cause significant conflicts if repayment terms are unclear. A letter for loan agreement ensures that both parties understand the loan is not a gift, but a financial obligation with agreed-upon repayment terms.

How to Write an Agreement Letter for a Loan?

Understanding how to write agreement letter for a loan is crucial to ensuring legal protection for both parties. The document should include:

• The names and contact details of the lender and borrower
• The amount loaned and repayment schedule
• Interest rates, if applicable
• Any collateral or guarantees securing the loan
• Consequences of non-payment

By structuring the agreement properly, you create a legally enforceable contract that eliminates confusion and safeguards both parties.

Using a Loan Agreement Letter for a Specific Type of Loan

Most loan agreement letters outline the specific purpose of the loan to ensure that the borrower uses the funds as intended. Clearly defining the loan’s purpose protects the lender by confirming that the borrower has borrowed the money in good faith. If the borrower fails to use the funds for the agreed-upon purpose, the lender may have the right to demand immediate repayment.

Why defining the loan’s purpose matters?

Specifying the purpose of the loan in the agreement helps prevent misuse and potential financial loss. For example, a business loan intended for purchasing equipment should not be redirected for personal expenses. By documenting the loan’s intended use, both parties set clear expectations, reducing the risk of misunderstandings or disputes.

Additionally, in some cases, the loan’s purpose may impact the interest rate, tax treatment, or eligibility for deductions. For example:

• Business Loans – If a loan is intended for business expenses, the borrower may qualify for tax deductions on interest payments.
• Home Improvement Loans – Lenders may offer lower interest rates for loans used for home renovations compared to personal loans.
• Student Loans – Some loans come with lower interest rates or deferment options if used strictly for educational expenses.

These are some examples of loans that require purpose-specific Agreement Letters:

1. Business Loans —

When a business borrows money, the agreement may specify whether the funds will be used for:

• Expanding operations
• Purchasing inventory or equipment
• Hiring employees
• Covering short-term cash flow needs

If the borrower uses the funds for personal expenses instead of the agreed-upon business purpose, the lender may enforce early repayment clauses or legal action.

2. Real Estate Loans —

Loans for purchasing property, whether for personal or investment purposes, often require specific terms, such as:

• Buying a home or commercial property
• Renovating or remodeling a property
• Refinancing an existing mortgage

If a borrower secures a loan for purchasing property but instead uses it for unrelated expenses, the lender may demand repayment due to contract violation.

3. Auto Loans —

When financing a vehicle, lenders often restrict the loan’s use to purchasing a specific car. The borrower cannot typically redirect the funds for other purposes, as the lender may retain an interest in the vehicle until full repayment.

4. Education Loans —

Student loans must be used for tuition, books, housing, and other approved educational expenses. Using student loan funds for non-educational purchases may result in financial penalties, loss of benefits, or repayment demands.

5. Personal Loans —

While personal loans offer more flexibility, lenders may still require borrowers to disclose their intended use, such as:

• Debt consolidation
• Medical expenses
• Home repairs
• Travel or major purchases

Misrepresenting the intended use of a personal loan could lead to higher interest rates, immediate repayment demands, or damage to the borrower’s credit.

Consequences of Misusing a Loan

If a borrower does not use the loan for its intended purpose, the lender may:

Take legal action – In severe cases, the lender may pursue legal recourse to recover the loaned amount.

Demand immediate repayment – The borrower may be required to repay the full balance immediately.

Charge penalties or additional fees – Some lenders impose financial penalties for misusing the loan.

Report the violation – The lender may report the borrower’s actions to credit bureaus, damaging their credit score.

Create a Legally Binding Loan Agreement in Minutes

Protect yourself and your financial interests by using a professionally drafted letter of loan agreement. A well-structured loan agreement letter ensures transparency, safeguards both parties, and helps prevent financial disputes. Whether you’re lending or borrowing, clearly defining the loan’s purpose and terms is essential to avoid misunderstandings and legal complications.

With FormPros, you can quickly generate a customized, legally binding letter for loan agreement online—no need for expensive legal fees or complicated paperwork. Our easy-to-use platform allows you to create a professional loan agreement in minutes, ensuring clarity, accountability, and peace of mind.

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W-4 vs W-2 Forms: A Definitive Guide for Employers

To avoid unwanted Internal Revenue Service (IRS) penalties, it’s important that employers complete W-4 and W-2 forms at the end of each tax year. 

However, knowing what each form’s requirements are and the difference between a W4 and W2 can be challenging. This is especially true for a small business without a large payroll department.

This article will explain why W-4 and W-2 forms are necessary. By the end you will know how to identify and complete each one, and what the options are for submitting them on time. 

The Basics of W-4 and W-2 Forms

Once business owners know what W-4 and W-2 forms are, understanding their differences and filling them out becomes much easier. 

But whats the difference between W2 and W4? Let’s take a closer look at the basics of each of these tax forms. 

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Form W-4 

Also known as the “Employee’s Withholding Allowance Certificate,” the W-4 is a form that the federal government requires employees to fill out when starting a new job. 

For an employer’s purposes, an IRS Form W-4 is used to determine the amount of income tax to withhold from an employee’s paycheck. The difference between a W4 and W2 lies in who fills them out—employees complete Form W-4, while employers complete Form W-2. 

It’s important that the information on the Form W-4 is accurate. If the incorrect amount is withheld from your employee’s paycheck, they could face expensive tax bills or penalties at the end of the tax year. 

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Form W-2

This IRS form is also known as a “Wage and Tax Statement.” Employers are required to complete and distribute this form to their employees by the end of the tax year. The W-2 form is a document that outlines how much an employee was paid during the year and how much income and federal tax was withheld. 

For each employee that is paid at least $600 in wages, employers must file a copy of the Form W-2 with the Social Security Administration (SSA). Unlike Form W-4, which employees submit to their employer, Form W-2 is sent to both the employee and government agencies. This is a key difference between W2 and W4. 

We’ll go into more detail about what these withholding allowances are later in the article. This form should be submitted with your employee’s tax return. Otherwise, the IRS will not accept the tax return as valid.

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W2 vs W4 Forms: Understanding the Differences  

Now that you know what these IRS forms are, we can outline the key difference between a W4 and W2 and how they relate to business owners. It’s crucial to remember that the main difference between these tax forms lies in their purpose and who fills them out. 

What are the purposes of these forms?

— While Form W-4 is completed by employees, it carries significant implications for employers as well. This form determines how much tax should be withheld from an employee’s paycheck, directly affecting payroll processes.

— Employees must submit a new Form W-4 whenever their financial situation changes. This could include starting a new job, getting married or divorced, having a child, or receiving a pay raise. These changes are important for employers because they can impact the amount of payroll taxes withheld throughout the year.

— Employers are generally not required to complete any sections of Form W-4, except in cases where state laws mandate new hire reporting. Once completed, employers should retain the form in case the IRS requests a copy for verification.

On the other hand, Form W-2 is entirely the employer’s responsibility. The W2 form vs W4 form distinction becomes clear when you consider that W-2 reports wages and taxes withheld, while W-4 is used to calculate withholdings.

A W-2 form should include:

• The employee’s gross pay.
• Any bonuses or tips received.
• Federal income tax contributions, including Medicare and Social Security taxes.
• Additional withholdings, such as retirement plan contributions.

Employers must compile this information and submit it to both the Social Security Administration (SSA) and the IRS to ensure accurate tax reporting for each employee.

What is the deadline for submitting W-4 and W-2 forms?

Another difference between W-4 and W-2 forms is their submission deadlines. 

Form W-4 Deadline –

• There is no official IRS deadline for submitting Form W-4, as it is completed by employees and kept on file by the employer. However, employers must ensure they implement an employee’s withholding changes by the first payroll period ending on or after 30 days from receiving a new W-4 form.

Form W-2 Deadline –

• Employers must submit Form W-2 to both the IRS and Social Security Administration (SSA) by January 31st of the following year. Employees must also receive their W-2 forms by this date to file their tax returns on time. If January 31st falls on a weekend or holiday, the deadline moves to the next business day. 

The table below summarizes the W4 form vs W2 differences: 

W-4 Form	W-2 Form
Employees fill out Form W-4.	Employers complete the form on behalf of their staff.
The purpose of this form is to inform employers of how much income tax to withhold from employees.	The W-2 form is used to report how much an employer-paid each employee and the amount of income tax withheld during the tax year.
W-4 forms should be submitted to employers within the first month of starting a new job.	Employers must complete and distribute a copy of the Form W-2 to their staff by January 31 of each calendar year.
Employers are recipients of W-4 forms.	W-2 forms are intended for employees and the IRS and SSA.
The Form W-4 is submitted each time an employee starts a new job or needs to report changes to their financial situation.	The Form W-2 is submitted only once, at the end of the tax year.

How Do Employers Fill Out W-4 and W-2 Forms?

IRS forms can be lengthy and intimidating at first glance. However, if you know what information is needed to complete W-4 and W-2 forms, the process is much easier. 

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Form W-4

Employees that are single (or married to an unemployed spouse), have no dependents and claim only one income, only need to include the following information on an IRS Form W-4:

• Full name and address 
• Social Security number 
• Marital status 
• The employment commencement date 

The employer will then need to enter their full name, address and their Employer Identification Number (EIN). Employees can also expect an additional three pages on the Form W-4. These include: 

• The Personal Allowances Worksheet 
• Deductions, Adjustments and Additional Income Worksheet 
• Multiple Jobs Worksheet

If the employee has more than one job, a working spouse or dependents, filling out a W-4 form can be slightly more complicated…. 

Multiple jobs or a working spouse —

Employees that have more than one job or whose filing status is “Married filing jointly” can complete their IRS Form W-4 in a few different ways. 

If the employee has two jobs, or if the spouse and the employee each have one job, the first line of the “Multiple Jobs Worksheet” must be completed. Both the employee and their spouse must ensure that they both fill out a W-4 form with their respective employers. 

Employees with more than two jobs between themselves and their spouse have to complete sections 2 to 4(b) on the W-4 form for the highest paying job. The W-4 form also comes with a worksheet to guide employees on how to use the salaries from their lower and higher-paying jobs to calculate the amounts to add to each line on the document. 

Dependents — 

It’s important for employers to note that if their employees have dependents they may be eligible for the Child Tax Credit. The eligibility requirements are that a single taxpayer must either be earning less than $200,000 or making less than $400,000 as a married couple filing jointly.

Employees would then multiply the number of dependents they have by the Child Tax Credit amount and add the amount to line three on Form W-4. 

If the employee has other dependents, it’s their responsibility to review who the IRS considers as dependents to ensure this section is completed accurately. 

Additional Withholdings —

After employees fill out the essential information on their W-4 form, they can also specify if they want any other money withheld from their paycheck. 

A good example is when an employee expects to earn income that is not subject to tax deductions. On the IRS Form W-4, these sections are:

• 4(a): This section should be completed if the employee expects to earn “non-job” income that is not subject to tax withholdings. 
• 4(b): Employees should fill out this section if they expect to claim deductions and want to reduce their withholdings. 
• 4(c): This section must be filled out to specify whether the employee has any other additional income they want to be withheld from each paycheck.

Before the employee can submit their W-4 form, they must sign and include the date to ensure the document is valid.

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Form W-2

When employers fill out W-2 forms, they need to include the company’s name, address and state-specific tax number. Additionally, the Form W-2 requires the following basic information about the employee: 

• Full name, address, and Social Security number 
• Gross pay
• Federal Income Tax
• Social Security Tax 
• Other compensation such as bonuses or tips

Although W-2 forms are fairly straightforward to complete, there are a few common mistakes which employers should avoid. Not only can errors on the W-2 form cause confusion for employers and employees, but these mistakes can also be penalized. 

Common mistakes to avoid include —

• Filling out a W-2 form that is outdated and from the previous year 
• Completing the form with incorrect employee name and Taxpayer Identification Number 
• Using titles and abbreviations in the name fields of a Form W-2
• Missing the IRS filing deadline 
• Not using black ink to fill in the form 
• Omitting your EIN
• Failing to complete the employee’s “Retirement plan or Medicare wage” section. 

Both employers and employees should ensure that the income tax withholdings on the Form W-2 are accurate to avoid expensive tax bills. 

Taking a closer look at penalties —

In the event a taxpayer does not fulfil their tax obligations, they could be subject to a penalty with the IRS. This means it’s important for both employers and employees to be aware of the different types of penalties and how to avoid them. 

There are a few reasons why penalties might be owed. Here are some of them: 

• The taxpayer does not file their tax return on time 
• Information on the tax return is incorrect 
• The individual pays their tax return in the wrong way

The IRS may also charge interest on a penalty if the taxpayer does not pay the total amount. Additionally, it may charge some penalties every month until the full amount is paid. When the IRS issues a penalty, they will inform the individual by letter or mail. This notice will outline the penalty, the reason for it and how to resolve it.

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What Happens After The W-4 and W-2 forms Are Filled Out?

Once these IRS forms have been completed, the next step is to file them electronically or send physical copies by mail. Let’s take a closer look at what each of these options entails and their pros and cons. 

E-Filing: 

This process involves filing tax returns over the internet via the Electronic Federal Tax Payment System (EFTPS). 

One of the main benefits of e-filing is that it processes returns much faster than mail submissions. Not only are returns processed within a day or two, but the IRS also sends people instant confirmation when their forms have been received. 

With e-filing, there is also less chance of human error. This is because the IRS does not have to manually enter your return into the system. The tax software used by the IRS completes the calculations, flags errors and will let taxpayers know if they have missed any important information. 

Although e-filing is efficient, there are a few limitations. Individuals cannot use the e-filing system if: 

• Additional statements or images are attached to the return
• The return is for someone who has passed away 
• The IRS has not opened the filing system for the year 

Paper Filing: 

For those who prefer not to use technology, paper filing works just as well as electronic submissions. 

This method also allows taxpayers to be much more thorough when completing their tax returns. The paper filing gives the individual the opportunity to review all the details of their tax return and see the calculations first-hand. 

Many taxpayers also find paper filing more secure because they do not have to upload any of their personal information onto the internet. Although the IRS has security measures to prevent data breaches, paper filing has less chance of ending up in the wrong hands. 

On the other hand, mail submissions take longer to process. Taxpayers can wait up to six weeks to receive refunds after their returns have been processed. There is also a greater chance of errors in processing paper tax returns because the IRS manually transcribes data in the system. 

Paper filing can also be quite daunting for beginners because various forms need to be gathered and submitted with the return. 

Filing Extensions:

Whichever submission method you choose to use, it’s important to request a filing extension if you are unable to meet the deadline to avoid late penalties. 

To request an automatic extension, taxpayers must use Form 4868.

The extension allows you more time to file your tax returns, but keep in mind that the tax payment is still due by April 18th. 

Say Goodbye to W-4 and W-2 Form Guesswork 

Understanding the difference between a W4 and W2 is crucial for both employers and employees. By ensuring these forms are completed correctly, businesses can avoid IRS penalties, and employees can ensure accurate tax withholdings.

If you’re still wondering, “What’s the difference between W-2 and W-4?”—simply remember:

• Form W-4 is filled out by employees to set their withholdings.
• Form W-2 is filled out by employers to report earnings and withholdings.

Using a form generator like FormPros can simplify the process, ensuring accuracy and compliance with IRS regulations. 

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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How to Get Paystubs for a New Apartment

When renting a new apartment, landlords often require proof of income to ensure you can afford the rent. One of the most common ways to provide this proof is by submitting paystubs.

In this article, you’ll learn exactly how to obtain paystubs for apartment rental applications, as well as other income verification options that may be accepted by landlords.

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Why Paystubs are the Most Trusted Proof of Income

When applying for an apartment, landlords typically want to ensure that your rent will be no more than 30% of your monthly income. That’s why they ask for proof of income upfront. Paystubs are the most commonly requested and trusted form of income verification for renters. They not only confirm that you’re employed but also detail your earnings.

A paystub typically includes important information such as your full name, your employer’s name, and contact details, providing a clear and up-to-date snapshot of your income. This makes them a reliable and easily accessible option for most tenants.

Although paystubs are considered reliable, they can still be forged. Some people create fake paystubs online, which is why landlords may request additional documentation to further verify your income.

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How to Obtain Paystubs for Renting an Apartment

For most renters, accessing paystubs is a simple and fast way to verify income. If you have direct deposit, you likely have access to your paystubs online through your employer’s portal. If not, you can request a copy directly from your HR department. For those who receive physical paychecks, remember to only provide a copy of the paystub to your landlord, not the original.

Generally, landlords will ask for up to two months’ worth of paystubs. This helps them verify both the frequency of your payments and your monthly earnings. When reviewing your paystubs, landlords typically check for details like your total income per pay period and your year-to-date (YTD) earnings.

If you’re a freelancer, gig worker, or independent contractor, you may not receive paystubs. Don’t worry—there are alternative ways to prove your income, and depending on the landlord’s requirements, you can provide other forms of documentation to verify your earnings.  

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Other Forms of Proof of Income 

While paystubs are the most common and reliable method for verifying income when applying for a new apartment, landlords may accept alternative forms of income verification, depending on your situation. 

Bank Statements

Self-employed individuals or those with irregular income may not receive traditional paystubs (though they may be able to create their own). In such cases, providing bank statements from the past two months is a great way to demonstrate a steady income. However, landlords may ask for more than two months’ worth of statements to ensure consistency in your income.

Bank statements also offer landlords a broader view of your financial situation, helping them assess whether you can comfortably afford the rent. That said, some renters may hesitate to provide bank statements due to the sensitive financial information they contain. As a landlord, it’s important to be aware of this potential concern.

W-2 Income Forms 

W2 forms are a reliable option for verifying income, as they reflect earnings from the previous year. However, many landlords prefer to use W-2 forms as a supplement to paystubs rather than a standalone document.

A W-2 form might not always provide the most current picture of your income, as it doesn’t account for recent job changes or salary adjustments. If you submit a W-2 form, landlords may also request recent paystubs or a letter of employment for further verification.

For renters with multiple jobs or other sources of income, a federal tax return (Form 1040) can offer a comprehensive overview of all income earned during the year.

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Letter of Employment 

A landlord may also request a letter of employment or a contractor agreement to verify your job status. Some companies issue standard letters that outline your position and salary, but you may want to approach your manager for a more personal, detailed letter that could serve as both proof of employment and a positive character reference. Similarly, independent contractors may be asked to provide a contractor agreement that outlines the terms of their work and compensation.

Be mindful that letters of employment and contractor agreements are easy to forge, so landlords may follow up with your employer or client to confirm the details. Additionally, it can take time to obtain either a letter of employment or a contractor agreement, as your employer or client may need to draft and sign it. Landlords may request these documents in addition to other forms of income verification, like W2s.

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Paystubs for a New Apartment 

Providing proof of income is crucial for renters, as it helps give landlords peace of mind and assures them that you can meet your monthly rent obligations. While there are several ways to verify your income, paystubs are the most common and reliable form of documentation.

However, pay stubs alone may not always be sufficient. It’s a good idea to have multiple methods of proof prepared. Your landlord may request additional documentation to verify your income, so it’s important to be aware of all the options available. Be prepared for your landlord to also check your credit history to assess your financial reliability.

Landlords typically require at least one document as proof of income, and having everything ready can help streamline the process. FormPros can assist you in generating paystubs and other essential tax forms, such as W-2s, saving you time and ensuring you have the right documents for your rental application.

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7 Payroll Mistakes Small Business Owners Should Avoid

Running payroll might seem like a routine task, but for small business owners, it’s one of the most important financial responsibilities. One wrong move can result in unhappy employees, tax penalties, or even legal trouble. While learning how to process payroll properly is essential, it’s just as important to understand what not to do. This guide walks you through payroll basics and highlights the most common mistakes small business owners should avoid.

What is Payroll?

At its core, payroll is the process of compensating your employees for the work they’ve done. It involves calculating wages, deducting taxes, and delivering net pay either by check or direct deposit. Payroll also includes maintaining records, submitting tax filings, and staying compliant with federal, state, and local regulations.

One essential output of payroll is the paystub—a document provided to employees that breaks down how their paycheck was calculated. Paystubs typically include gross pay, tax withholdings, other deductions, and net pay. They help employees understand their earnings and provide a clear audit trail for your business.

How Do You Calculate Payroll?

Calculating payroll involves several steps, but with the right tools and attention to detail, it can be streamlined:

1. Determine Gross Pay: This is based on hourly wages or salary, plus any overtime, bonuses, or commissions.
2. Calculate Tax Withholdings: Subtract federal and state income taxes, Social Security, and Medicare. To determine the correct federal income tax withholding, you’ll need each employee’s completed Form W-4. This form provides the IRS with information on filing status and any withholding adjustments the employee requests.
3. Account for Other Deductions: These might include retirement plans, health insurance, or voluntary benefits.
4. Pay Your Employees: Once deductions are made, issue the net pay.
5. Generate and Distribute Paystubs: Whether required by your state or not, providing paystubs is a best practice. You can simplify this step using a paystub generator, which automatically creates accurate, professional paystubs based on your payroll data. Paystubs keep employees informed and offer a valuable record for resolving potential disputes.
6. File and Remit Payroll Taxes: Ensure all taxes are submitted to the IRS and state/local agencies on time.

What NOT to Do When Calculating Payroll

Even with the right tools, small mistakes in payroll can lead to big problems. Here are seven things you shouldn’t do when handling payroll for your small business:

1) Don’t Misclassify Workers –

Classifying workers correctly is essential. Employees and independent contractors are treated differently for tax purposes. If you incorrectly label a full-time employee as a contractor to avoid tax withholdings, you could face hefty IRS penalties. When in doubt, review IRS guidelines or consult a professional.

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2) Don’t Skip Tracking Hours Accurately –

Guesswork doesn’t cut it. Whether your team is hourly or salaried, you need precise time records—especially for overtime. Inaccurate or incomplete time tracking can result in overpaying, underpaying, or violating labor laws.

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3) Don’t Forget to Withhold and Remit Taxes –

It’s not enough to calculate taxes—you must also withhold them from paychecks and submit them to the appropriate agencies. Missing these steps leads to IRS fines, interest charges, and possible audits. Payroll software can automate this to reduce risk.

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4) Don’t Ignore State and Local Payroll Laws –

Federal laws aren’t the only ones that matter. Many states and cities have specific payroll rules, such as minimum wage rates, paid leave requirements, or paystub mandates. Failing to comply can lead to penalties or lawsuits.

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5) Don’t Miss Payroll Deadlines –

Late paychecks damage employee trust and morale. Late tax filings can cost your business in fines and interest. Create a schedule and stick to it—or better yet, automate it—to make sure everything gets out on time.

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6) Don’t Use Manual Calculations Without Double-Checking –

Doing payroll by hand invites errors. While spreadsheets might seem cost-effective, even a small formula mistake can snowball. If you’re not using a payroll platform, be sure to cross-check calculations carefully or use online tools to make a paystub accurately and avoid costly mistakes.

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7) Don’t Fail to Keep Payroll Records

Payroll records aren’t just for your reference—they’re legally required. Maintain detailed records of paystubs, timesheets, tax filings, and deductions for at least 3–4 years. Digital recordkeeping makes compliance and audits much easier.

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Keep Payroll Clean—Avoid Costly Mistakes

Payroll doesn’t have to be a pain—but it can become one if you’re not careful. By understanding how payroll works and steering clear of these common errors, you’ll keep your business compliant and your employees satisfied.

If you’re managing payroll in-house, having the right tools makes all the difference. A trusted solution like FormPros can help you calculate wages, stay on top of tax withholdings using employee-provided Form W-4 details, and make a paystub in minutes—so you can focus more on running your business and less on fixing payroll mistakes.

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Simplify your paperwork with FormPros! Whether you need a paystub generator, want to make a W-2, or need to file a 1099-NEC, our easy-to-use platform has you covered. You can also learn what is a LLC Operating Agreement and generate one in minutes, or even create a voided check with just a few clicks. Save time, reduce errors, and manage your business documents with confidence. Get started today and see how FormPros makes professional form generation fast, affordable, and hassle-free!

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How Do Banks Verify Income For An Auto Loan?

If you’re shopping for a new car, you might be considering an auto loan. Many people don’t fully understand how these loans work, especially income verification. Do you need pay stubs for an auto loan? The answer depends on your credit score, employment status, and lender requirements.

With a low credit score, banks focus on your income when reviewing your application. How do banks verify income for auto loans? Knowing the process helps you prepare your application and avoid approval delays.  

Why You Need Proof of Income 

Banks don’t always require proof of income to approve a loan. However, when applying for an auto loan, they focus on three key factors:

1) Credit Score

2) Down Payment

3) Debt-to-Income Ratio

Lenders often request proof of income for car loan and employment if you have bad credit to ensure you can afford payments and avoid default. A strong credit score, large down payment, or both can reduce the need for income verification by lowering the lender’s risk.

Your debt-to-income ratio (DTI) measures how much debt you carry compared to your income, including mortgages, student loans, or other car loans. A good DTI shows you can handle your current debt along with a new car loan.

Lenders set limits on total debt, typically preferring a DTI below 36% for auto loans. Minimum income requirements vary, but most lenders expect at least $1,500 to $2,000 in monthly pre-tax income. For example, if you earn $1,500 per month, your total debt—including the new auto loan—should not exceed $540 per month to qualify.

How to Verify Income for an Auto Loan 

To verify your income for an auto loan, lenders may ask for your latest W-2 or one to two recent paystubs. How do car dealerships verify pay stubs? They might call your employer to confirm your job status, so providing a copy of your employment agreement can help.

• Contractors & Freelancers: Submit a copy of Schedule C from your tax return.
• Other Income Sources (e.g., government assistance): Provide a monthly income statement.

How Banks Verify Income for Auto Loans 

Lenders verify income based on its source, which can affect the approval process.

– Traditional Employment –

Employees with a W-2 typically experience a smooth approval process if they meet income requirements. Banks may request up to three recent paystubs to verify income for an auto loan. If you have multiple part-time jobs, provide paystubs from each.

Lenders may also contact your employer to confirm employment. Let your employer know they might receive a call.

– Self-Employed –

Self-employed applicants must provide a Schedule C from their latest tax return. Higher business income improves approval chances.

Income verification for self-employed borrowers takes longer since banks must review tax records. To avoid delays, consider pre-approval before visiting a dealership.

Some lenders offer no income verification car loans, but these often come with higher interest rates (10% or more) and extra fees. The best way to avoid verification delays is by applying with a strong credit score or a large down payment.

– Unemployed – 

Unemployed applicants can still qualify, but it’s harder. Lenders require proof of income for car loan, such as Social Security statements, 1099-Rs, or recent tax returns for retirees.

For unemployed non-retirees, banks see a higher risk. If unemployment benefits run out before a new job starts, repayment becomes uncertain. In this case, having a co-signer improves approval chances.  

When You Don’t Need to Verify Income for an Auto Loan 

You may not need to verify your income for a car loan if: 

• You have a great credit score 
• You have a substantial down payment 
• You have been working at the same job for years 
• You are applying for the loan at the same financial institution where your paycheck gets deposited  

Some lenders even offer no income verification car loans for high-credit borrowers, but these typically require a larger down payment.

Do You Need Pay Stubs for an Auto Loan?

Lenders generally ask for pay stubs if your income isn’t easy to verify, such as for part-time workers or freelancers. Do you need proof of income to buy a car? Not always. If you have a strong credit score and a stable financial history, lenders may approve your loan without additional documentation.

What do auto loans look for? Lenders primarily assess your credit score, debt-to-income ratio, and employment stability. Strong financial health increases your chances of approval and may eliminate the need for strict income verification.

Being Prepared to Apply for a Car Loan 

Applying for an auto loan can be time-consuming and come with unexpected challenges. Knowing what lenders look for helps you prepare and avoid delays.

If you have a low credit score or are self-employed, gather your income verification documents before applying. Do you need pay stubs for an auto loan? If your income is stable and easy to verify, you may not. But if you’re self-employed or have variable income, having proof ready can speed up approval and get you into your new car faster.

Create Your PayStubs with FormPros

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Tax Tips for Yoga Teachers and Instructors

If you’re a yoga instructor, you likely wear many hats — coach, marketer, therapist, and small business owner. Whether you teach in a studio, host private sessions, or stream classes online, your income often falls under self-employment — and that comes with unique tax responsibilities. Here’s a clear, no-nonsense guide to help yoga teachers understand their tax obligations and make the most of available deductions.

Understanding Your Work Status: Contractor -vs- Employee

Before you file anything, you need to understand how you’re classified. Most yoga teachers are independent contractors, especially if you:

• Teach at multiple studios
• Offer private or virtual sessions
• Get paid directly by students

As a contractor, you’ll typically receive a Form 1099-NEC instead of a W-2. That means you’re responsible for your own income taxes, including self-employment tax.

On the other hand, if you’re employed full-time by a gym or wellness center and receive a Form W-2, taxes are usually withheld from your paycheck.

Income Sources You Must Report

Even if your income as a yoga teacher varies from week to week, the IRS still expects you to report all forms of income, regardless of how or where you earn it. This includes digital payments, cash, barter arrangements, and anything deposited into your personal or business account.

Common Income Streams for Yoga Instructors:

1) Studio Class Payments: Many instructors are paid per class by yoga studios, wellness centers, or gyms. If you earn over $600 from a studio during the year, they may issue you a Form 1099-NEC — but even if they don’t, you’re still required to report the income.

2) Private or Group Sessions: Teaching individuals or small groups in private homes, parks, or online platforms can be a significant income source. These sessions are often paid in cash or through peer-to-peer apps like Venmo, Zelle, or PayPal — all of which are reportable.

3) Online Classes and Memberships: Offering virtual classes via Zoom, YouTube, or membership sites (like Patreon or Teachable) has become increasingly popular. Monthly subscriptions, donations, and class access fees all count as taxable income.

4) Retreats and Workshop Earnings: Hosting a yoga retreat or paid workshop, either locally or abroad, can generate substantial income — but also come with complex tax considerations, especially if international. All participant fees and service payments must be tracked and reported.

5) Affiliate Sales and Product Partnerships: If you partner with brands to promote yoga mats, apparel, or wellness products and earn a commission or receive free merchandise, this too may be considered taxable income. The IRS views barter (e.g., getting free gear in exchange for promotion) as compensation.

Why Documenting Income Matters:

Many yoga instructors rely on informal or flexible payments — and that’s exactly why documentation is essential. Without clear records, it’s easy to underreport earnings, which can lead to audits, penalties, or missed deductions. To stay compliant and organized:

• Create paystubs or invoices for every session or payment received — even cash.
• Use a consistent tracking method, whether a spreadsheet, notebook, or app.
• Keep digital records of payments received through platforms like Stripe or PayPal.

Maintaining clear income records also makes it easier when applying for loans, leases, or mortgages, where proof of income is often required.

Smart Tax Deductions for Yoga Instructors

The good news? As a self-employed yoga teacher, you can deduct a range of business-related expenses — as long as they’re ordinary and necessary.

Here are some common write-offs:

• Yoga mats, blocks, straps, and props
• Educational courses, certifications, or workshops
• Website hosting and marketing costs
• Studio rental fees or Zoom subscriptions
• Travel costs for retreats or teaching gigs
• Portion of your home (if used as a studio or office)

Quarterly Tax Payments & Forms to Know

As a self-employed yoga instructor, taxes aren’t automatically deducted from your pay like they are for traditional employees. That means you’re in charge of calculating and sending payments to the IRS yourself — usually four times a year. Skipping these payments can result in penalties and interest, even if you plan to pay in full at tax time.

Do You Need to Make Quarterly Payments?

If you expect to owe more than $1,000 in federal income tax for the year (after subtracting any withholdings or refundable credits), you’re generally required to make estimated quarterly payments. This is very common for independent contractors and freelancers — and especially relevant for yoga teachers with multiple income sources.

*A simple rule of thumb: If you’re getting paid through Venmo, Zelle, PayPal, or personal checks — and no one is withholding taxes for you — you probably need to file quarterly.*

2025 Quarterly Tax Deadlines –

Mark your calendar with these IRS deadlines for estimated payments:

• Q1: April 15th
• Q2: June 17th (Note: since June 15th is a Sunday, the due date shifts to Monday)
• Q3: September 15th
• Q4: January 15th (of the following year)

To avoid underpayment penalties, aim to pay at least 90% of your current year’s total tax or 100% of last year’s tax bill, whichever is less.

Essential Tax Forms for Yoga Instructors –

Here are the key forms most yoga professionals will need when tax season rolls around:

— Form 1099-NEC: You’ll receive this form from any client or studio that pays you $600 or more in a year. It reports non-employee compensation, which is considered taxable income.
*If you’re hiring others — like a photographer, assistant, or massage therapist — and pay them $600+ for services, you may need to issue a 1099-NEC as well.*

— Schedule C (Form 1040):This is where you report your income and business expenses as a sole proprietor. It allows you to deduct business-related costs — like yoga props, travel, training, and marketing — which helps reduce your taxable income.

— Form W-2: If you also work as an employee (say, for a gym or school), you’ll receive this form showing wages earned and taxes already withheld. You’ll need to include it when you file your tax return.

— Form 8829: If you use part of your home for your yoga business — like filming online classes or holding virtual sessions — you might qualify for the home office deduction. This form helps you calculate the portion of expenses (rent, utilities, etc.) you can write off.

Stay Organized & Plan Ahead

Here are some quick strategies to keep your yoga business tax-ready all year long:

• Use a bookkeeping app or spreadsheet
• Keep a dedicated bank account for business income/expenses
• Save a portion of your income for taxes (30% is a safe rule)
• Set calendar reminders for quarterly due dates
• Work with a tax pro if your income grows or becomes more complex

And finally, don’t wait until April to get your paperwork in order. FormPros can help you generate accurate tax forms in minutes — no accounting degree required.

Make a Paystub Now

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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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What is a Paystub?

Ever stared at your paycheck and wondered where your money went? You’re not alone. For many employees, a paystub is just another slip of paper or digital file—but it holds vital information that explains exactly how much you earned, what was deducted, and what you actually get to take home.

Whether you’re an employer issuing paychecks or an employee trying to understand them, knowing how to read—and even create—a paystub is essential. In this guide, you’ll learn what a paystub really is, what details it must include, and how to generate one correctly to ensure compliance and clarity for everyone involved.  

Paystubs Explained 

A paystub is a form that lists details about an employee’s pay, such as taxes and other deductions taken out of their earnings.  

A pay stub shows wages earned for that specific pay period (current pay period), as well as year-to-date amounts (YTD). Deductions also appear on an employee’s pay stub. In the end, the pay stub reveals the employee’s actual take-home pay (net pay) to be deposited into their account.  

Deductions That You Will Find on a Pay Stub Include:  

• Employee tax deductions: These are taxes mandated by government agencies, such as federal income tax, state and local taxes (if applicable), and the employee’s portion of FICA tax. 
• Benefits and other deductions: These deductions depend on the extra benefits that the employer provides and what the employee wants to be deducted, such as insurance premiums, retirement plans, or charitable donations.  
• Employer contributions: Items contributed from an employer may also appear on an employee’s pay stub, including the employer’s contribution to employee benefits or the portion of FICA tax. 

Pay stubs let employees ensure that they get the correct paycheck amount and employers a way to settle discrepancies in an employee’s pay. As an employee, you are responsible for keeping a copy of each of your pay stubs. Your employee must also keep a copy. 

How to Create a Pay Stub 

Employers must know how to properly create a paystub to accurately pay their employees on time and avoid any discrepancies in pay. 

If you are an employee, it is useful to know the process your employer uses to create your pay stubs so you can better understand your pay. 

Information needed to create a paystub –

An employer creates employees pay stubs using the following information: 

• Payroll cycle 
• Wages for all employees 
• Tax withholdings 
• Benefit withholding for each employee. 

You can use your employees’ W-4 forms to determine their withholdings and allowances that should be deducted from each pay period.  

Determine the Payroll Cycle 

The payroll cycle is important as it determines how often you pay your employees. The four different types of payment schedules are: 

• Weekly: once a week 
• Bi-weekly: every 2 weeks
• Semiweekly: twice a week 
• Monthly: once a month 

Most companies pay their employees bi-weekly, but the payroll period you choose will largely depend on how you want to approach your business’s yearly schedule. 

Calculate Pay and Gross Wages 

As an employer, you must track your employees’ hours to calculate their pay.  The easiest way to do that is by keeping the information in a spreadsheet.  

To calculate an employee’s gross wages, multiply the number of hours the employee has worked during that pay period by their hourly rate.  

From there, you will have to calculate payroll deductions and allowances (or exemptions). Your employees specify their allowances on their W-4. A deduction is what can be deducted from your income when you do your taxes, and you will have to pay close attention to your employees’ tax-related forms to make proper withholdings.  

You must also factor in other aspects of payroll processing on top of deductions and allowances, such as federal tax and employee benefits. This step can be time-consuming, so it is important to have all of the information organized on a spreadsheet. 

You may have to consider:  

• Federal taxes 
• Local taxes 
• Social Security 
• Medicare 
• Workers’ compensation contribution  
• 401(k) contribution 

Calculate Net Pay 

To calculate net pay, you must subtract withholdings from the employee’s gross pay. Net pay is how much each employee takes home at the end of each pay period. 

Net pay is the amount that employees often look at first in their pay stub, and from there, they verify that their gross pay and deductions are properly calculated.  

Other Things to Know About Pay Stubs 

Here are some additional tips for understanding pay stubs: 

• 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.  
• For employees, it is important to know that some states don’t require employers to provide pay stubs at all. If your employer does not provide pay stubs, it is worth requesting them anyway in order to keep a record of your pay. 
• Pay stubs are available in paper format or online. As an employer, you want to make sure that pay stubs are accessible to all of your employees. If paper is your preferred method of administering pay stubs, you may want to keep electronic records as a backup. In the event of uncontrollable circumstances, such as a natural disaster, having relied on paper copies of documents may make it difficult to recover.  
• Excel is a great spreadsheet tool to create pay stubs, but it is prone to errors. FormPros is a more reliable alternative that will save you time and is less expensive than an account. 
• If you continue to have trouble generating pay stubs, enlist the help of an accountant. You want to make sure that your pay stubs are always accurate.  

States that do not require paystubs:

The following states don’t require employers to provide a pay statement, but it’s a good practice to regularly issue pay stubs in line with your pay period. Since there’s no required format, employers can choose to deliver pay statements electronically if they opt to provide them.

Alabama	Arkansas	Florida
Georgia	Louisiana	Mississippi
Ohio	South Dakota	Tennessee

States requiring access pay stubs:

The following states require employers to provide a statement detailing an employee’s pay information, though it doesn’t have to be in writing or as a paper pay stub. Employers can generally meet this requirement by offering electronic pay stubs, as long as employees can access them.

Note: While most states accept this approach, some may require additional features, such as the ability to print the electronic statements.

Alaska	Arizona	Idaho	Illinois
Indiana	Kansas	Kentucky	Maryland
Michigan	Missouri	Montana	Nebraska
Nevada	New Hampshire	New Jersey	New York
North Dakota	Oklahoma	Pennsylvania	Rhode Island
South Carolina	Utah	Virginia	West Virginia
Wisconsin	Wyoming

States requiring access or print paystub options:

These states require employers to provide a written or printed pay statement detailing the employee’s pay information. However, the statement doesn’t need to be delivered with the paycheck or in a specific format.

A common interpretation of the law allows employers to provide electronic pay stubs, as long as employees can access and print them. Employers must ensure that employees have both access to the electronic pay stubs and the ability to print them if needed.

Note: While most state agencies follow this interpretation, some may have additional requirements, such as obtaining employee consent to receive pay stubs electronically.

These states include:

California	Colorado	Connecticut
Iowa	Maine	Massachusetts
New Mexico	North Carolina	Texas
Vermont	Washington

States requiring opt-out option:

Some states require employers to allow employees the option to opt out of any paperless pay program. This typically applies when the employer implements an electronic pay stub system. In these opt-out states, employees who choose to opt out will start receiving paper pay stubs again.

Delaware

Minnesota

Oregon

Note: Hawaii is currently the only opt-in state that requires employee consent before implementing an electronic paperless pay system. Employers must provide a written or printed pay statement detailing the employee’s pay unless the employee consents to receive it electronically.

My Quick Summary

Paystubs are important documents to help employees keep track of their pay and know exactly how much they take home each paycheck. Employers need to generate accurate pay stubs for their employees, and using technology can help. 

FormPros allows you to create pay stubs using a few simple steps, saving you the trouble of hiring an accountant for payroll.  Utilize FormPros to simplify the paystub process. 

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What is a Paystub? FAQs

• What should I do if my paystub shows incorrect information?
  If you notice errors—like incorrect hours worked, wrong deductions, or a missing benefit—report the issue to your HR or payroll department immediately. Keep a record of your communication and request a corrected paystub. Mistakes can affect your taxes and financial planning, so they should be resolved promptly.
• Can independent contractors receive paystubs?
  While employers are not required to issue paystubs to independent contractors, they can still provide payment records for transparency. Contractors can also create their own paystubs using tools like FormPros for proof of income, especially for things like renting an apartment or applying for loans.
• How long should I keep my paystubs?
  It's a good idea to keep paystubs for at least one year or until you’ve verified your W-2 or annual tax return. For purposes like loan applications or disputes with employers, keeping them longer—up to 3–5 years—is smart. Always store them in a secure, backed-up location if kept digitally.
• What’s the difference between a paystub and a W-2 form?
  A paystub details your earnings and deductions per pay period, while a W-2 is an annual summary of your total wages and tax withholdings submitted to the IRS. You’ll use your W-2 to file your taxes; your paystubs can help you verify that information throughout the year. You can read more about the relationship between a paystub and a W2 here.
• Can a pay stub be used as proof of income for loans or rentals?
  Yes. Many lenders, landlords, and government programs accept recent pay stubs as proof of income. Typically, they will ask for your most recent two to three stubs to verify stable employment and earnings.
• What if I lose my pay stub—can I request a replacement?
  Yes. Most employers can reissue a pay stub if you lose it, especially if they use digital payroll systems. If your employer uses paper-only methods, replacement may take longer. Always check your state’s rules regarding employee access to payroll information.
• Is it legal for an employer to alter a paystub after it’s been issued?
  An employer can correct a paystub if it contained an error, but they must clearly communicate the change and provide a corrected version. Any intentional alteration to deceive or manipulate wages is illegal and can be reported to your state labor board.

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Self-Employed? Don’t Forget About the Estimated Tax Deadline

Being self-employed comes with many perks—flexibility, independence, and control over your income. But it also brings added responsibilities, especially when it comes to paying taxes. Unlike W-2 employees, self-employed individuals don’t have taxes automatically withheld from their income. Instead, you’re expected to pay estimated taxes throughout the year—typically on a quarterly basis.

Missing an estimated tax deadline can lead to IRS penalties, so it’s crucial to know your responsibilities and stay organized.

Who Needs to Pay Estimated Taxes?

If you’re self-employed, a freelancer, gig worker, or independent contractor, you likely need to make estimated payments if both apply:

• You expect to owe $1,000 or more in federal income tax for the year, after subtracting withholding and refundable credits.

• Your withholding and credits will be less than 90% of your 2025 total tax –or– less than 100% of your 2024 total tax (use 110% of 2024 if your 2024 AGI was over $150,000; $75,000 if married filing separately).

W-2 employees have taxes withheld based on their W-4 form, but as a self-employed individual, you’re responsible for estimating and paying your taxes directly to the IRS.

Quarterly Deadlines for the 2025 Tax Year

Quarter	Income Period	Estimated Due Date
Q1	Jan 1st – Mar 31st, 2025	April 15th, 2025 (Tuesday)
Q2	Apr 1st – May 31st, 2025	June 16th, 2025 (Monday; June 15th is a Sunday)
Q3	Jun 1st – Aug 31st, 2025	September 15th, 2025 (Monday)
Q4	Sep 1st – Dec 31st, 2025	January 15th, 2026 (Thursday)

*If the due date falls on a weekend or federal holiday, it shifts to the next business day. You can skip the final payment due in January if you file your tax return and pay your full balance by January 31st.*

How to Calculate Your Estimated Tax Payments

To figure out your estimated taxes, start by projecting your total income for the year and subtracting any business expenses. That gives you your net income, which is what the IRS cares about. You’ll also need to account for self-employment tax (15.3% for Social Security and Medicare) on top of regular income tax.

Use IRS Form 1040-ES to help you calculate how much to pay. It includes instructions and worksheets that guide you through estimating income, deductions, and credits. If your income is steady, divide your total annual tax bill by four. If not, recalculate before each payment.

Example:

Emma is a freelance graphic designer. She expects to earn $80,000 this year and has about $20,000 in deductible business expenses. That leaves $60,000 in net income ($80,000 – $20,000 = $60,000).

She estimates:

• $8,500 in income tax
• $9,180 in self-employment tax (15.3% of $60,000)
• Total estimated tax = $17,680

Divided by four quarters, Emma plans to pay $4,420 every three months. She pays online using the EFTPS system and updates her estimates if income changes.

What Happens If You Underpay?

If you don’t pay enough estimated tax, the IRS may hit you with a penalty. You can usually avoid this if you owe less than $1,000, paid at least 90% of your current year’s taxes, or 100% of last year’s. Certain exceptions—like retirement, disability, or other unusual circumstances—may also apply.

Smart Tips for Staying on Top of Estimated Taxes

Paying estimated taxes doesn’t have to be stressful—as long as you stay organized and plan ahead. Here are some practical tips to help you manage your payments and avoid penalties:

1) Track your income and expenses monthly to avoid surprises at each deadline.

2) Set aside 25–30% of each payment in a dedicated savings account for taxes.

3) Wait to pay until you’ve actually earned income—no need to prepay before you start working.

4) Keep detailed records of each estimated payment made—you’ll need them when filing your return.

5) Overpaid one quarter? You may reduce or skip the next payment—quarterly payments are cumulative.

6) Check your state tax rules—many states require their own estimated payments with separate deadlines.

Stay Ahead of Tax Season with the Right Tools

Estimated taxes are a routine part of self-employment, but with a little planning, they don’t have to be a burden. By tracking your income, staying aware of deadlines, and adjusting as your earnings fluctuate, you can avoid penalties and stay in control of your finances year-round.

If you’re looking for reliable tools to simplify your tax-related tasks, FormPros can help. Whether you need to create professional paystubs to verify your income for loans, rentals, or personal recordkeeping—or generate other important tax forms like Form 1099-NEC or Form 2553—FormPros makes it easy and efficient.

Running your own business is hard work. Staying compliant with estimated tax payments doesn’t have to be. Let us help you handle the paperwork so you can focus on what you do best.

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FormPros Has You Covered

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Self-Employed? Don’t Forget About the Estimated Tax Deadline FAQs

• What’s the difference between estimated tax and self-employment tax?
  Estimated tax is the system for paying your expected federal income tax and self-employment tax in advance, typically quarterly. Self-employment tax specifically refers to the Social Security and Medicare taxes (15.3%) that self-employed individuals owe. So, self-employment tax is a part of your total estimated tax bill.
• Can I make estimated tax payments more frequently than quarterly?
  Yes, you can make payments as often as you like—monthly or even weekly. The IRS only requires quarterly payments by specific deadlines, but there’s no penalty for paying more frequently. Doing so can help with budgeting and reduce the burden of large quarterly payments.
• Do estimated tax payments apply to state taxes too?
  Yes, many states require their own estimated tax payments, separate from the federal ones. Each state has its own deadlines, rules, and forms. Be sure to check with your state’s tax agency to understand your obligations and avoid state-level penalties.
• What if my income is seasonal or inconsistent throughout the year?
  If your income fluctuates, you can use the IRS’s annualized income method to pay more accurate estimated taxes each quarter. This approach helps you avoid overpaying early in the year or being penalized for underpayment due to seasonal income changes.
• Can I deduct estimated tax payments when filing my return?
  No, federal estimated tax payments are not deductible on your federal tax return. However, they do reduce the total amount you owe when you file. Keep accurate records of each payment so you can report them correctly and avoid being double-billed.

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