How Long Should I Keep Pay Stubs?

Nov 28th, 2023

If you’re an employee, employer or independent contractor, there are various reasons as to how long to keep pay stubs.

Not only does a pay stub help you streamline the tax filing procedure, but it also helps avoid legal trouble in the event of an audit.

Individuals can use pay stubs to get a loan, open bank accounts, and ensure that their deductibles are appropriate.

This blog will outline everything you need to know about how long you should keep a pay stub and why you should do so.

What is a Pay Stub?

A Pay Stub is a document that shows an employee’s earnings and total deductions during a particular pay period. These documents indicate how much income tax, social security contributions and other benefits are deducted from an employee’s salary.

A Pay Stub contains the following information:

  • Personal Details including postal address, full name and Social Security Number.
  • Employer’s Address.
  • Number of hours worked.
  • Gross pay before deductions.
  • Any taxable deduction and benefit.
  • Net income after deductions.

Free Paystub Generators: Everything You Need to Know

How Long To Keep Pay Stubs and Do Employers Have To Provide Pay Stubs?

The Fair Labor Standards Act (FLSA) states that employers should keep a record of the following:

  • Each employee’s personal information, including their full name and address.
  • Any information relating to an employee’s compensation. This includes worked hours, hourly rates, overtime and deductions.

Although employers are required to record employees’ compensation, they aren’t necessarily required to provide them with digital or paper pay stubs.

States where employers are required to issue pay stubs are:

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

States Where Employers Are Required To Issue Pay Stubs:

  • Alabama
  • Arkansas
  • Floria
  • Georgia
  • Louisiana
  • Mississippi
  • Ohio
  • South Dakota
  • Tennessee

While some states do not require pay stubs to be issued to employees, formal institutions like banks need them as proof of income.

This means that the employees need to create their pay stubs. In this case, employees can use their contracts to know how much they earn.

Paystub Deduction Codes

How Do You Get Pay Stubs as an Independent Contractor?

Independent Contractors are self-employed individuals who provide services to different clients and firms.

Examples of Independent Contractors are writers, painters and graphic designers.

Why Should I Keep Old Pay Stubs?

Employees, employers and independent contractors must keep their old pay stubs for various reasons. Let’s see what those reasons are:

Employers: Business owners must accurately record their employee’s information, including compensation-related details. If a business has financial statements like pay stubs in hand, they might find themselves on the right side of the law, leading to an investigation.

For example, an employee has filed a complaint against their employer about their salary. An employer can use pay stub records while filing an employee’s income tax returns.

Employees and Independent Contractors:

No law requires employees or independent contractors to monitor their earnings and deductions.

It helps to ensure you are paid adequately: When you receive your pay stubs, you can check and monitor your earnings and deductions.

This ensures that the right taxable deductions are subtracted from your wages and that you are being paid in an orderly fashion as per your employment agreement.

You can use Pay Stubs as Proof of Income: Many formal institutions need proof that you have a stable income before you can use their financial services. For example, banks will only allow you to take out a loan with proof of income. You can use pay stubs as proof of income, though you will be able to repay debts.

Paystubs make Tax Filing Easier: You need to use your pay stubs to calculate wages and deductions on your W-2 when you file your taxes. Your annual income will dictate how much tax you must pay, your health and other insurance premiums, and the Social Security benefits you are eligible for.

How Long Should I Keep Pay Stubs?


Record-keeping requirements differ from state-to-state. Generally, employers are encouraged to keep their financial records for at least three years.

Employees and Independent Contractors:

It is recommended that you should keep your pay stubs for at least 12 months. You shall need your pay stubs to accurately file your W-2 forms and Social Security contributors to ensure you are paying the correct amount of tax on time.

Self-Employed? Here’s How To Show Proof Of Employment

What are Some of the Best Ways To Store A Pay Stub?

Trying to store and organize the physical copies of your pay stubs for several years can be hectic. Not only does this take up a lot of space, but it will be frustrating to search for the documents if everything needs to be properly organized.

Using the cloud-based digital solutions where you can easily store your documents online makes this manageable. You can scan and upload the physical pay stub copies to your computer to keep digital records.


The basic deadline for the question How Long Should I Keep Pay Stubs is 12 months. In case you are looking for an easy and affordable tool to create paystub online free, eFormscreator is your one-stop shop. The user-friendly tool is fully automated, allowing you to create pay stubs quickly.

Paystub Deduction Codes

Nov 10th, 2023

To correct payroll, you need the right information, including the data required to create paystub. A pay stub lists all the valuable information about an employee’s pay.

A Deduction Code identifies types of deduction codes, like significant medical, health benefits, credit union payments, charitable contributions, etc.

Employers and workers must understand the information on a pay stub. Employers must generate authentic pay stubs that match the gross pay, tax withholdings, and other payroll amounts.

This blog explains the information required to create a paystub and view the most common paystub deduction codes.

What is a Pay Stub?

In most cases, a pay stub is being provided to the employees. It includes essential information about an employee’s payment, such as wages earned for a pay period, essential deductions, and the amount of money an employee takes home.

This information can fluctuate depending on your state, though many states require you to give pay stubs to your employees. You should keep a copy of each pay stub for your payroll record.

Why are Pay Stubs Crucial?

The employees and employer can use pay stubs to record previous wages, but they can also make sure that the payments are accurate.

By viewing how their payment is broken down, employees can understand their tax deductions and know how much of their tax is going where.

If there is no equality between you and your employer, you can use the pay stubs to prove they were paid equally. Employees can use the pay stub to help them complete their W-2 forms when completing taxes.


Information Needed To Create Paystub:

Regulate the information for each employee:

Payroll Cycle: The payroll Cycle is defined as the number of pay periods that determine how much salary is paid on each payroll date. It also determines the start and end days for computing hourly payroll.
Wages: Gross pay and Net pay. Wages might be based on salary using an hourly rate of pay.
Tax Withholdings: State, Federal and Local amounts withheld for taxes.
Benefit Withholdings: Amounts withheld for the employee’s share of insurance premiums to be invested in a retirement plan.

The rules regarding the pay stub vary state by state. Some states require employers to provide workers pay stubs, while others do not.

Employees should keep their most recent pay stubs as evidence of income. If an individual applies for a loan, the paystub confirms the borrower’s gross income.

The pay stub information should match the data on each employee’s year-end W-2 form, which the individuals use to file their personal tax returns.

Understanding FICA, FUTA and SUTA Taxes

A pay stub shall report FICA, FUTA and SUTA Tax information.

FICA tax is collected to fund Social Security and Medicare. FICA is a compulsory payroll tax for the Federal Insurance Contributions Act.

The FICA Tax comprises two separate taxes which fund two large programs managed by the Federal Government: Social Security and Medicare.

The Medicare rate is 1.45% on all wages, and high-income taxpayers will pay an additional 0.9% tax for Medicare.

Employers also pay 7.65%, deducting the cost as a business expense. The employer’s payment is generally included in the pay stub.

The FUTA funds unemployment programs, taxes and the SUTA tax. The employer pays these amounts, but is also reported on the pay stub.

Pay Stub Deduction Codes

The most common pay stub deduction codes include:

FED, FIT, FWT: Federal Income Tax Withholding.
SIT, State, SWT: State Income Tax Withholding.
FICA: FICA taxes paid for Medicare and Social Security.
YTD: Year-To-Date.
MED: Insurance deductions for health, vision and dental insurance.
INS: Insurance deductions for other coverage like life insurance.
401(k): 401(k) contributions into a retirement plan.
FSA or HSA: Contributions into a flexible spending account (FSA) or health savings account (HSA).

What is a Stub Deduction?

Standard pay stub deductions include state and federal income tax and Social Security Tax. State and federal withholdings account for much of the gross and net income gap.


Deduction Code identifies deduction codes, like significant medical health benefits, credit union payments, charitable contributions, etc. Create Free Paystub easily with eFormscreator for free!

Self-Employed? Here’s How To Show Proof Of Employment

Oct 12th, 2023

It is an easy task for full-time, contracted employees to deliver a proof of employment. All they need to do is ask the HR department at their firm for a copy.

Self-employed might not be able to show a proof without any help. Verifying employment is crucial when applying for a personal loan. In this blog, we will be covering how to show proof of employment if you’re self-employed individual.

Who is eligible to be a Self-Employed Individual?

Self-employed, commonly known as Independent Contractor report self-employment income. If you’re self-employed, you will work for yourself rather than for an employee.

As stated by the IRS, a self-employed individual is someone who:

  • Partakers in trade
  • Is part of a partnership in a trade
  • Is in business for themselves

Self-employed individuals may work for:

  • Writer
  • Editor
  • Designer
  • Salespeople
  • Construction Workers

What is a Proof of Employment?

Proof of employment is a form of document that hires companies to request to confirm an individual’s work history.

Below mentioned are the common reasons why a third party might want to verify your employment which include:

Loan Applications: If you are trying to apply for a loan, the lender will want to see whether or not you will be able to pay back their money which is based on your monthly income.

They might also want you to provide a proof of your employment. Once this is understood, the lenders shall establish how the repayment can be scheduled in terms of loans.

Applying to Rent: Many property owners rent out their houses and want to make sure that the new tenants will be able to afford the rent or not.

For example, are you going to work somewhere else or on the property itself? The proof of employment helps the landlord get a better understanding of your employment and if you have a stable income in order to cover the rent.

Searching for Another Job: If you’re looking for another job, salary negotiations will inevitably happen, and the interviewer will ask about your current salary, which they shall take into consideration. This will give the employer a brief overview of your past employment status.

Credit Card Applications: Finacial Institutions depend upon various factors when they consider requests for credit cards, which include the applicant’s current employment and salary. Proof of your employment shows credit companies that you will be able to meet your debt goals and their payments in a timely order.

How to Show Proof of Self-Employment?

HR departments at large companies have to deal with proof of employment and also have a system in place to issue these documents. However, if you’re a self-employed individual, you might need to generate these documents yourself in order to show a proof of your employment.

Annual Tax Returns: Form 1099-NEC is a tax document which is used to report the income earned by independent contractors. Firms are required to file a copy of Form 1099-NEC with the IRS and to send a copy to the independent contractor. This is because the IRS must know that how much tax revenue they can expect from a self-employed individuals. It is important to note that the independent contractor who has earned more than $600 from a business shall receive a Form 1099-NEC.

Form 1099-NEC is used for showing verification of your income. It provides physical proof of self-employed earnings, the amount earned, and where it came from. 31st January is the deadline to submit independent contractors with a copy of their Form 1099-NEC. It is also the deadline for providing the employees with a W-2 form.

Pay Stubs: A pay stub is a written document that showcases how much a person is earning during a specific pay period. There are different ways via which a self-employed worker can receive and create pay stub. One choice is to contact the HR department at the firm where you have provided services.

For a self-employed individual, this is the basic information listed on a pay stub:

  1. The name of the firm that provides the service for
  2. Independent Contractor’s Job Title
  3. Number of hours worked during a pay period
  4. The total wages paid before the self-employed worker’s deductions made
  5. State, Federal, and Local taxes withheld from an individual contractor’s gross earnings

Pay stubs are important because they can provide proof of income and employment for self-employed individuals.

Bank Statements: Bank Statements, commonly known as account statements- are documents that are typically sent by a financial institution to their account holder each month.

This account statement is a history of all the transactions that the account holder makes during a particular period of time. The statement contains bank account information like account numbers detailed list of the holder’s total income and expenses.

For lender and financial institutions, a bank statement can be the proof of the employment and can afford to meet their repayment dues on time.

Employment Verification Letter: An employment verification letter is the kind of document which is written by a current employer who confirms the employment status of the current employee. Potential employers and other various government agencies can request an employment verification letter.


So, now you know that if you’re a self-employed individual and need a loan for a car, showing a letter of self-employment as proof of income this should not be a problem for you and in case you need to create paystub, we have our very own free paystub generator for you to generate a pay stub easily.

Creating pay stubs If You’re Self-Employed

Sep 27th, 2023

If you’re self-employed, your main focus will be securing new consumers and delivering a quality product. However, there is more to growing your business, including payroll-related issues. Use our free paystub generator to generate professional-looking pay stubs to maintain productivity.

Understanding Pay Stubs

Pay stubs are the key to all the crucial employee pay information. While reviewing a pay stub, it is important to note the difference between the current pay period and the year-to-date amount. Both are important as the employer and the employee understand if the amount is correct.

The pay stub provides wages, tax withholdings, and benefit withholding information.

Self-employment pay stubs do not have any withholdings from their pay.

You can issue a pay stub to a contractor who lists out the gross amount paid, and the contractor can use the pay stubs for contractors to prove his earnings to the lender.

The rules and regulations regarding pay stubs vary from state to state. Most states must provide pay information to workers, while others do not. Businesses should make a confirmation statement of the requirements in each state where they employ workers.

Employees should keep their most recent pay stubs as a proof of income. If an individual employee applies for a loan, the pay stub confirms the borrower’s gross income. Employers should keep pay stubs on their file if it’s generated.

Information Required to Create a Pay Stub

Keep in mind to check the following things:

  • Payroll Cycle: The number of pay periods decides how much salary is paid on each payroll date.
  • Wages: Gross and net pay. Wages may be based on the employee’s compensation or calculated upon the hourly pay rate.
  • Tax Withholding: Federal, State, and local amounts withheld for taxes.
  • Benefit Withholding: Amount withheld for employee’s share of insurance premium.

How to Calculate Net Pay?

For example, Janet’s annual income is $5,000, and your company processes payroll 26 times yearly. Julie’s gross wages each pay period total $5,000/26 or $1,923 pay per period.

Based on her allowances on the W4 forms, the company should withhold 20% of her gross pay for federal taxes and 5% for state taxes. Janet also pays $50 each pay period for her shares of the company’s health insurance plans.

Janet’s net pay is $1,923, less than $480 for taxes and $50 for her health insurance premiums. Her net pay is $1,393.

The pay stub will include all of the information as mentioned above for the current payroll period and year-to-date. The pay stub that you generate also includes unemployment tax payments. Hourly workers need details on their total hours worked and any hours paid as overtime wages.


Should you be Paying Yourself Like an Employee?

A Pay stub demonstrates that your company pays you regularly just like any other employee, meaning that the Federal, State, Social Security, and Medicare taxes are withheld from your paychecks.

The withholding amount keeps you in check with the taxes owed at the year’s end; it is easier to withhold from each paycheck. The pay stubs showcase regular income.

This is important if you’re applying for a loan. Self-employment pay stubs generally have a shift via extra hoops to prove stable earnings. If you have a pay stub and a W-2 form, which your company generates at the end of the year, you can show consistency of income.


eFormscreator provides you with a free pay stubs generator, which is user-friendly, and takes less time in generating pay stubs. Use eFormscreator to create pay stubs and streamline your process.

Understanding Your Pay Stub: All About YTD

Sep 08th, 2023

No matter you’re a business creating paystubs or an employee who receives paystubs every month, the different YTD abbreviations on a paycheck stub might be confusing. Understanding YTD is a crucial task that makes sure that the deduction and insurance contribution on a pay stub is authentic. So, in this article, you will understand and learn the various abbreviations of YTD paystub.

What does YTD mean?:

On an employee paystub, YTD paystub represents the employee’s total income, their deductions, less their deductions. This includes:

  • Social Security
  • Health Insurance
  • Retirement Plans

Why is YTD so Important?:

1- For Employers:

YTD amount allows employees to assay the amount of money they will spend on an employee payroll expenses during a specific year. These amounts often include money paid to the independent contractor- these are self-employed individuals hired for one job.

Business owners use this information in order to compare their year-to-date payroll expenses to the total budget of the company. By knowing what is the employee’s gross income it helps employers in:

  • Deciding if employees are compensated equally
  • Determine if the business will be able to afford new hiring
  • Make sure that the compliance with state-specific or national tax

YTD amount helps business estimate that if they will be able to meet their deadlines and their projected growth target for a year and helps in predicting their yearly tax liabilities. This is the total amount of tax a business owes for a specific period of time.

2- For Employees & Independent Contractors:

YTD amount are very crucial as they are useful for telling employees abnd independent contractors how much they havre earned in a particular year.

YTD and Paystubs:

The YTD NET abbreviation on a paystub ytd defines the total amount of income and taxable deductions for each and every employee. Since a payroll system can sometimes go wrong, it is important for employees to make sure that the amount on their paystub is authentic throughout the year. If they are wrong and the employee ends up paying you less taxes, then they may owe a huge amount of money to the IRS to rectify that error.

Read More: Everything You Need to Know about Free Paystub Generators

How to Calculate the YTD amount on a Paystub?:

Calculating a YTD is simple if you know what to look for on your paystub. Let’s take a look at it:

Step 1: Gather all the Information: If you’re an employee and want to calculate YTD you need to know the following things:

  • Pay period or number of months you want to calculate the YTD for
  • Your monthly earnings subtract the deductions on the paystub that you have received from your employer

Step 2: Calculate your YTD: Use the information and multiply the two values in order to calculate YTD. Example, YTD for an employee will be: $10,000 X 12 months = $120,000 YTD.

As an employer, YTD for your business payroll works the same way except you’ll add the employee’s annual wages together.

Example, if employee A earns $120,000 on an annual basis and employee B earns $100,000 the business payroll’s YTD amount will be: $120,000 + $100,000 = $220,000.

What if I don’t receive a Paystub?:

In several cases employers are not required to provider their employees with a monthly paystub. But you still can calculate YTD the same way when you would have paystubs.

The time duration now would be flexible.

Example, if you want to calculate YTD for someone who has only worked for two pay periods and earned $1,000 per period your calculation would be following:

$1,000 X 2 = $2,000

In order to calculate YTD for the current payroll date if your business do not issue paystub you will be following the same steps as mentioned in the previous section.

So, you will add the annual year-to-date wages for each employee together.

Example, if an employee A earns $130,000 and employee B eanrs $110,000 on a business payroll the calculation would be like this:

$130,000 + $110,000 = $240,000

Generate Paystubs with Free PayStub Generator EformsCreator:

In order to make sure that the employees income and deductions are made perfectly, they need to understand the different terms mentioned on their ytd paystub. For employers being able to calculate the specific YTD amount is a part of running a successful and smooth business.

If you’re looking for an easy, affordable and a simple user-interface free paystub generator to generate accurate YTD amount, Eforms Creator is the perfect tool for you. Our simple to use and user-friendly software allows you to generate hassle-free paystub in few minutes.


YTD stands for year-to-date and is used for reporting an employee’s yearly earnings, taxable deduction and other contributions. Employees can use YTD to track how much the business is spending on an individual’s payroll and how much is using the amount to decide on the expenses for a particular year. And if you want to generate paystub from a reliable and a free paystub generator EformsCreator is your choice!

Free Paystub Generators: Everything You Need to Know

May 25th, 2023

In today’s digital age, where automation and convenience are paramount, free paystub generators have become essential for employers and employees. Pay stubs are crucial in documenting income, deductions, and taxes, providing transparency and accountability.

With the availability of numerous free paystub generators online, understanding their features and benefits is essential. In this blog post, we will explore everything you need to know about free paystub generators and how they can simplify the payroll process.

What is a Paystub Generator?

A paystub generator is an online tool that helps generate pay stubs or paycheck stubs. It automates creating pay stubs, allowing employers to input necessary details, such as employee information, wages, taxes, and deductions, to generate accurate and professional-looking pay stubs.

Information Available on Pay Stub

Here are some common elements found on a pay stub:

Employee Information: This section typically includes the employee’s name, employee ID or number, address, and sometimes their social security number or other identification information.

Pay Period: The pay period indicates the specific range of dates for which the employee is being paid. It could be a weekly, bi-weekly (every two weeks), semi-monthly (twice a month), or monthly pay period, depending on the employer’s pay schedule.

Earnings: This section outlines the employee’s gross earnings, including regular wages or salary, overtime pay, bonuses, commissions, tips, or any other additional income. It may also specify the number of hours worked during the pay period and the hourly rate.

Taxes Withheld: This section lists various taxes that are withheld from the employee’s earnings, such as federal income tax, state income tax, and sometimes local taxes. The amounts withheld are based on the employee’s tax withholding elections and the prevailing tax laws.

Deductions: Common deductions include contributions to retirement plans (e.g., 401(k)), health insurance premiums, dental insurance, vision insurance, life insurance, and any other voluntary deductions agreed upon between the employee and the employer.

Net Pay: Net pay, also known as take-home pay, is the amount the employee receives after all deductions and taxes have been subtracted from their gross earnings. It represents the actual amount the employee will receive in their bank account or as a physical paycheck.

Year-to-Date (YTD) Totals: This section provides a summary of the employee’s earnings and deductions from the beginning of the year up to the current pay period. It helps track the total earnings, taxes withheld, and total deductions for the year.

Employer Contributions: Some pay stubs may include details about the employer’s contributions, such as employer matching contributions to retirement plans or contributions toward health insurance premiums.

Benefits of Using Free Paystub Generators

Time and Cost Savings: Free paystub generators eliminate the need for manual calculations and tedious paperwork, saving time and reducing costs associated with traditional payroll processes.

Accuracy and Professionalism: Paystub generators ensure accurate calculations and generate polished, professional-looking pay stubs that comply with legal requirements.

Easy Access and Convenience: Online paystub generators can be accessed from anywhere with an internet connection, allowing employers and employees to create pay stubs conveniently.

Record Keeping: Pay stub generators often include options to save and store pay stubs digitally, facilitating easy record keeping for future reference and audits.

Tax Compliance: Pay stubs generated through these tools help in maintaining tax compliance by documenting income, deductions, and taxes accurately.

Key Features of Free Paystub Generators

Employee Information: Paystub generators typically include sections to input employee details like name, address, social security number, and employment status.

Income and Hours: The tool allows you to enter wage details, including hourly rates, total hours worked, overtime, and bonuses, and automatically calculate gross income.

Taxes and Deductions: Paystub generators consider federal, state, and local tax rates, and allow customization for deductions such as health insurance, retirement contributions, and other withholdings.

Year-to-Date (YTD) Summary: These generators often provide a YTD summary, which shows cumulative income, taxes, and deductions for the employee.

Design and Formatting: Paystub generators offer templates and formatting options to create professional-looking pay stubs with logos, company information, and itemized sections.

Factors to Consider While Choosing a Paystub Generator

When choosing a paystub generator, there are several important factors to consider.

Here are some key points to take into consideration:

Accuracy and Compliance: Ensure the paystub generator is accurate and compliant with relevant payroll laws and regulations. It should calculate deductions, taxes, and other payroll components correctly to avoid any legal issues.

Customization Options: Look for a paystub generator that allows you to customize the layout and design of the paystubs to match your company’s branding and specific requirements. This flexibility ensures that the paystubs align with your company’s image.

User-Friendly Interface: The paystub generator should have an intuitive and user-friendly interface that makes it easy for you to enter employee information and generate paystubs.

Integration with Payroll Systems: If you already use payroll software or system, check if the paystub generator can integrate with it. Seamless integration can save you time and effort by automatically pulling employee data and payroll information.

Security and Privacy: Paystubs contain sensitive employee information, so it’s crucial to choose a paystub generator that prioritizes security and privacy. Look for features like data encryption, secure servers, and compliance with data protection regulations.

Cost and Pricing Structure: Consider the cost and pricing structure of the paystub generator. Some may charge a one-time fee, while others have a monthly or annual subscription. Evaluate the features and value the paystub generator provides to determine if it aligns with your budget.

Support and Customer Service: Ensure that the paystub generator offers reliable customer support to assist you in case of any issues or questions. Look for options like live chat, email, or phone support to ensure you can get assistance when needed.

Record-Keeping and Access: Check if the paystub generator offers options for record-keeping and access to past paystubs. It should have a system for storing and retrieving paystub information, making it easier for you to maintain accurate records and provide them to employees when required.

Mobile Compatibility: If you need to generate paystubs on the go or prefer mobile accessibility, consider a paystub generator that offers mobile compatibility or has a dedicated mobile app.

Reviews and Recommendations: Research and read reviews from other users to get an understanding of their experiences with different paystub generators.


Free paystub generators have revolutionized the payroll process, making it more streamlined, accurate, and convenient for employers and employees. By automating pay stub creation, these tools save time, ensure compliance, and provide professional documentation of income and deductions.

When choosing a paystub generator, consider factors such as accuracy, customization options, data security, and user-friendliness. Embracing the benefits of free paystub generators can simplify payroll management and enhance overall efficiency in your organization.

Read Related: Guide to Creating an Employee Handbook for Workers