What Are Pay Stubs and How Do You Make Them?

Businessman Opening Envelope With Paycheck

There’s nothing like the sweet relief of payday. However, you may be overlooking the importance of your pay stubs.

So, what are pay stubs exactly? They’re more valuable than you think. You may need to prove your income at a moment’s notice for a new apartment, car, or loan.

Pay stubs get lost in the shuffle, but you don’t have to fill up your junk drawer with more unwanted items. You don’t even need to ask your boss for your pay stubs! Now, you can print out your stubs in just minutes.

Learn more about what a pay stub is and how you can print one in a flash.

What Are Pay Stubs?

Pay stubs are all about the details. The stub is the part of your paycheck that breaks down your wages for a given pay period.

Your stub also itemizes the following deductions:

  • Federal and local taxes
  • Social security
  • Healthcare benefits
  • Medicare

If your wages are garnished, those garnishments would appear on your pay stub, as well. Any court-ordered deductions, like child support, may appear on your stub too.

Remember, your stub shows your net pay. Net pay is the final amount after deductions. Your gross pay is the total before deductions.

Why Do You Need Pay Stubs?

Both employees and employers should keep a record of pay stubs. Business owners must keep meticulous financial records for bookkeeping purposes. Employees need pay stubs to prove income for substantial assets, loans, and taxes.

It’s 2020, and more employers are direct depositing paychecks. While this creates a digital record for employees, that record may get lost if your employee switches banks or opts out of the direct deposit. Instead of issuing new stubs, employees can simply create and print stubs online.

How to Create Your Pay Stub

Employees, employers, and self-employed individuals could benefit from using a paystub generator free of charge. The process is quick, easy, and painless.

Start by visiting your stub generator of choice. Next, choose the state where you work or operate a business.

You’ll need the following information handy:

  • Your company’s name
  • Your employment status (employee or contractor)
  • The last four digits of your social security number
  • Hourly wage or salary for the pay period
  • Pay period frequency (one-time, bi-weekly, annually, etc.)
  • Specific pay period dates

Paystub generators may vary in process, but they all require similar information. When you’re finished filling out your information, review your stub before printing.

Most generators also have optional items, like deductions, so that you can create more accurate stubs. These generators are incredibly beneficial for 1099 contractors who juggle multiple clients.

Never Lose a Pay Stub Again

What are pay stubs, you ask? They’re little financial records for each pay period. Use a generator to keep an accurate pay stub record moving forward. You never know when you’ll need to produce a pay stub quickly.

Staying organized is essential for today’s job-seekers. Your pay stubs are just one factor to consider. Check back often for more valuable tips for savvy job-seekers like yourself.