If you don’t know what employment pay stubs are, look no further.

A pay stub is an important document that many people use as they often come paired with paychecks. However, many people still aren’t aware of what they are or don’t realize that they have them. Understanding how they work will help you in a variety of ways.

If you go to take out a loan or meet with a financial adviser, you’ll need to bring documents that show how much you’re earning. This makes it easier for others to determine where you are financially. Fortunately, a pay stub is one of the simplest ways to prove your income.

Keep on reading to learn everything you need to know about employment pay stubs!

What Is a Pay Stub?

Pay stubs are some of the most common documents used as proof of income. They’re typically provided to employees by employers whenever they receive a check. With a pay stub, you can keep track of how much income you’ve received and what’s been deducted.

While employers are obligated to provide pay stubs, those that are self-employed don’t need them. However, it’s possible to make them with a program and it would be wise to do so because it makes record-keeping easier.

What They’re Used For

Aside from monitoring income, pay stubs are often used when someone is trying to get a loan. Lenders want to verify how much money you make, so a pay stub can give them a detailed description of what someone’s take-home pay is.

These are common loans that people apply for:

  • Mortgages
  • Vehicle financing
  • Lines of credit

When visiting a lender, you can present them with your most recent pay stubs. They’ll see where you work, how much you’ve earned, and when you’ve earned the money.

How to Make Employment Pay Stubs

Making a pay stub isn’t a difficult process, but you’ll need to go over several calculations to ensure that you do it properly. If you’d like to stub to be used as legal proof of income, you need to list the gross pay, deductions, and net pay without any errors.

Gross Pay

One’s gross pay is the total amount of money they’ve received in a pay period without any deductions. For example, someone that works 40 hours a week and receives $15 an hour will earn $600 per week. If their pay period is 2 weeks long, they’ll earn $1200 each pay period.

When calculating your gross pay, you should also include money earned from overtime. In most cases, you’ll earn time and a half, so you’d multiple your regular hourly rate by 1.5. Instead of earning $15 for each hour of overtime, you’d earn $22.5.


Deductions are things that come out of your pay and go into other things, such as taxes. The most common ones are Social Security, local, and state taxes. If you’re on a retirement plan, you’ll also have money being taken out for that.

Anyone that works for an employer and receives paychecks will receive automatic deductions from their pay. Those that are self-employed will need to look into how much they should be legally deducting. In some cases, you may not have to pay local taxes.

If you’re confused about how much to deduct, you can look into the IRS Employer’s Tax Guide. Your marital status and whether you’re the head of the household will also affect how much you have to deduct.

Net Pay

When you subtract your deductions from your gross pay, you’ll come up with the net pay. This is the same number you’ll see on your paycheck as it’s the amount you take home. You can expect to get a net pay of anywhere between 10% to 30% less than your gross pay.

Choosing Between Programs and Online Generators

Now that you know what needs to go on a pay stub, you’ll need to choose whether you want to use a generator or a program. Both options are effective, but a generator may be more efficient because you won’t have to do as much work.

Using a paystub maker, you can input your numbers a receive an automatically-generated template. From there, you can print it and use it as you please. However, you’re limited in terms of how much information you can put on it and how it looks.

When you use a program like Microsoft Excel or Google Spreadsheets, you can create a custom template that can be accessed at any time. Google Spreadsheets offers just as many features as most spreadsheet programs, but the biggest benefit of using it is that your documents will save in the cloud.

Whenever you make a pay stub template, you can download it from any device. You can also share the template with others, which is effective if you’re an employer that’s looking to save time.

If you’re looking to make a personalized pay stub, make one on a spreadsheet program. If you want to make one as quickly as possible without worrying about the format, you can go with an online generator.

Now You Can Start Making Employment Pay Stubs

Employment pay stubs can be made by anyone and now you know exactly what goes on them. Providing that you make the correct calculations, you can start to make pay stubs that can be used as legal proof of income.

Any time you get paid, consider making a pay stub so that you can easily track your income. However, you can spread them out between several weeks and months if that would be easier for you.

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