What is a pay stub and what must it include?+
A pay stub (also called a paycheck stub, earnings statement, or payslip) is a document that accompanies an employee's paycheck detailing their earnings and deductions for a specific pay period. While federal law doesn't mandate that employers provide pay stubs (under FLSA), most states do require them. A complete pay stub should include: employee and employer name/address, pay period dates, pay date, gross wages, all itemized deductions (taxes, insurance, retirement), net pay, and year-to-date (YTD) totals. This generator includes all standard elements used by professional payroll companies like ADP and Paychex.
How is federal income tax withholding calculated in 2026?+
Federal income tax withholding is calculated using the IRS Publication 15-T (2026) percentage method tables. The process: (1) Annualize the period wages by multiplying by pay periods per year. (2) Add Step 4a income, subtract Step 4b deductions and the standard deduction for the filing status. (3) Apply the 2026 annual withholding tables to find annual tax. (4) Subtract Step 3 credits (child tax credit amounts). (5) Divide by pay periods per year to get per-period withholding. (6) Add any Step 4c extra withholding. This calculator uses the exact IRS percentage method — the same method used by all major payroll software. 2026 standard deductions: $16,100 (single/MFS), $32,200 (MFJ), $24,150 (HoH).
What is the difference between gross pay and net pay?+
Gross Pay is your total earnings before any deductions — your "headline" compensation. For salary employees, it's annual salary ÷ pay periods. For hourly, it's hours × rate (plus overtime). Net Pay (also called "take-home pay") is what you actually receive after ALL deductions are subtracted: federal income tax withholding, state income tax, Social Security (6.2%), Medicare (1.45%), any pre-tax deductions (401k, health insurance, HSA), and any post-tax deductions (Roth 401k, garnishments). The difference between gross and net is often surprising — a $75,000 salary with typical deductions yields approximately $54,000–$57,000 in annual take-home pay depending on state and benefits.
What are pre-tax vs. post-tax deductions?+
Pre-tax deductions are subtracted from gross wages BEFORE calculating income tax withholding and sometimes FICA. This reduces your taxable income. Common pre-tax deductions: Traditional 401(k) contributions (reduces federal, state, and local income tax but NOT FICA), health insurance premiums under a Section 125 cafeteria plan (reduces both income tax AND FICA), HSA contributions (reduces both income tax and FICA), FSA contributions, dental/vision insurance. Post-tax deductions are subtracted AFTER all taxes are calculated. Common post-tax deductions: Roth 401(k) contributions, life insurance over $50K group term, wage garnishments (child support, student loan levies), union dues, charitable payroll deductions, Roth IRA payroll deductions. Post-tax deductions reduce net pay but do NOT reduce tax burden.
What is the Social Security wage base for 2026?+
For 2026, the Social Security (OASDI) taxable wage base is $184,500, up from $176,100 in 2025. This means Social Security tax (6.2% employee, 6.2% employer) only applies to the first $184,500 of wages. The maximum Social Security tax an employee can pay in 2026 is $11,439 ($184,500 × 6.2%). Once an employee reaches $184,500 in cumulative wages for the year, no further Social Security tax is withheld. Medicare tax (1.45%) has no wage base cap — it applies to all wages with no limit. The Additional Medicare Tax of 0.9% applies to wages exceeding $200,000 for single filers (this is collected entirely from the employee — employers don't match it).
How do I calculate overtime pay correctly?+
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay of at least 1.5 times their regular hourly rate for hours worked over 40 in a single workweek. Many states have additional overtime rules (California, for example, requires daily overtime for hours over 8 in a day and double time for hours over 12). For hourly employees: Overtime Pay = (Hourly Rate × 1.5) × Overtime Hours. For salaried non-exempt employees: First calculate the "regular rate" by dividing total compensation by total hours worked, then apply 1.5x for overtime hours. Our generator handles standard federal overtime (1.5x) and double time (2x) calculations. Note: The DOL 2024 rule raising the salary threshold for exempt employees to $43,888/year remains under legal challenge as of April 2026.
Do I need pay stubs as a self-employed or freelance worker?+
As a self-employed person or independent contractor (1099 worker), you don't receive traditional pay stubs from employers. However, pay stubs or proof of income documents are often required for: apartment rental applications, mortgage or loan applications, car loan applications, lease applications. Self-employed individuals can use our generator to create income documentation based on their actual invoiced income. Important legal note: A self-employed pay stub should clearly state it's self-generated and should accurately reflect actual income. Misrepresenting income on loan applications is bank fraud. For mortgage applications, most lenders require 2 years of tax returns rather than pay stubs for self-employed individuals regardless of any generated documents.
How often are employees paid and which pay schedule is best?+
The four common pay schedules in the US: Weekly (52 paychecks/year): Common in construction, manufacturing, hospitality. Employees receive smallest paycheck amount but most frequently. Bi-weekly (26 paychecks/year): Most common in the US — used by about 43% of employers. Two "3-paycheck months" per year. Semi-monthly (24 paychecks/year): Common for salaried employees. Paid on fixed dates (e.g., 1st and 15th). Slightly more complex for overtime calculation. Monthly (12 paychecks/year): Least common, typically for higher-level executives or contract employees. State laws may mandate minimum pay frequency. California requires semi-monthly minimum for most employees. Texas requires semi-monthly for manual laborers. Check your state's Department of Labor for specific requirements.
What is YTD (Year-to-Date) and why does it matter?+
YTD (Year-to-Date) figures on your pay stub show cumulative totals from January 1st through the current pay period. They're critical for: (1) Tracking whether you've reached the Social Security wage base ($184,500 in 2026) — once reached, SS withholding stops. (2) Tax filing — your W-2 should exactly match your final 2026 YTD figures. (3) Loan applications — lenders verify income using YTD earnings. (4) 401(k) contribution tracking — ensuring you don't exceed the $24,500 limit. (5) HSA/FSA contribution tracking. Our generator automatically calculates estimated YTD totals based on how many periods you've completed. For exact YTD figures, each period's actual numbers should be added cumulatively — which our stub shows for the selected number of prior periods.
What state income tax rates apply in 2026?+
State income taxes vary dramatically across the US in 2026. States with NO income tax: Alaska, Florida, Nevada, New Hampshire (no wage income tax), South Dakota, Tennessee (no wage income tax), Texas, Washington, Wyoming. States with flat rates include: Colorado (4.4%), Illinois (4.95%), Indiana (3.05%), Kentucky (4%), Massachusetts (5%), Michigan (4.25%), Mississippi (4%), North Carolina (4.25%), Pennsylvania (3.07%), Utah (4.55%). States with progressive rates: California (1%–13.3%), New York (4%–10.9%), Oregon (4.75%–9.9%), Minnesota (5.35%–9.85%), New Jersey (1.4%–10.75%). This generator applies approximate 2026 state withholding rates based on annualized wages and filing status. For exact withholding, refer to your state revenue department's official 2026 withholding tables.
What is the difference between exempt and non-exempt employees?+
Under the FLSA (Fair Labor Standards Act), employees are classified as: Non-exempt employees must receive: (1) at least federal minimum wage ($7.25/hour federally, many states higher), (2) overtime pay (1.5x) for hours over 40/week, (3) accurate recordkeeping of all hours. Exempt employees are exempt from overtime and minimum wage requirements if they meet BOTH a salary test and duties test. Salary test 2026: must earn at least $43,888/year ($844/week) — this figure is under active legal review. Duties tests: must be bona fide executive, administrative, professional, computer, or outside sales employee as defined by DOL regulations. Note: State laws may have stricter exemption thresholds. California's exemption threshold is approximately $66,560/year for 2026. Misclassifying non-exempt workers as exempt exposes employers to significant DOL penalties and back-pay liability.
