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.

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