Creating Pay Stubs

Step-by-step help with earnings, deductions, taxes, and previews.

You don't type taxes in. Federal income tax, Social Security, Medicare, and state tax are calculated from the employee's work state and pay frequency, the earnings you enter, and any pre-tax deductions. Earnings go in as separate lines — regular pay, overtime, bonuses, commissions — so the finished stub itemizes them rather than showing one lump sum.

Two mistakes cause most wrong totals: entering a pre-tax deduction such as health insurance or a 401(k) as post-tax, and leaving year-to-date figures blank on a stub that isn't the first of the year. The live preview is the finished document, and switching templates changes only the layout, never the figures, so check everything there before you download.

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