Free Pay Stub Template
Hourly pay stubs
This free pay stub template displays an itemized list of hours worked and hourly rates according to the type of shift completed. It is useful if you need a pay stub template with comprehensive hourly data. The template will help you compute earnings totals after you enter the pay rates and the number of hours worked. Net pay is shown at the bottom of the template, and you can itemize deductions as well.
Salaried pay stubs
This template is perfect for businesses that want a simple pay stub template that resembles a traditional earnings statement. For ease of tracking, the pay date and period are clearly shown.
Commission-based pay stubs
This pay stub template is ideal for employees who earn income primarily through commissions, such as salespeople or real estate agents. It provides a clear breakdown of commissions earned, deductions, and net pay.
What is a pay stub?
A pay stub is a document that shows an employee's earnings and deductions for a specific pay period. It is also called a pay statement, pay slip, or wage statement.
Employers use pay stubs to track employee earnings. Pay stubs also help workers understand their pay deductions and verify income for various purposes, like loan applications or tax filings. Pay stubs are typically provided in paper format or electronically through payroll software.
What information must be included on a pay stub?
The following information should be included on a pay stub:
- Employee details: including their name, social security number, and address
- Gross pay: which is the total amount of money earned before deductions
- Pay period dates
- Deductions: including insurance premiums, Medicare, social security, and taxes
- Net pay: which is what the employee takes home after deductions.
- Year-to-date totals: sum of yearly earnings and deductions
Why are pay stubs important?
Pay stubs are valuable to employers and employees. We’ve listed a few of the benefits that pay stubs provide, below.
1. Proof of income
Pay stubs serve as proof of income for employees. Having access to pay stubs comes in handy when employees apply for loans, mortgages, or rental property. Lenders and landlords require these documents to verify an applicant receives consistent and sufficient income to cover rental costs.
For employers, providing pay stubs to employees helps minimize disputes concerning payments. Pay stubs are documented evidence of the wages employers paid to employees. Employees can use pay stubs details to confirm they received payment as reported.
2. Transparent view of deductions
The information in a pay stub includes a breakdown of both mandatory and voluntary deductions. These deductions include federal and state taxes, social security, health insurance, and retirement contributions.
When employees see a detailed list of their deductions, it helps them understand where their money is going. This transparency can prevent confusion and limit disagreements over pay discrepancies since workers can tell exactly why their net pay is different from their gross pay.
3. Assist in tax preparation
Pay stubs make it easier for employees to track earnings and taxes paid throughout the year. Pay stubs become especially important during tax season, as employees use them as a record to verify they have paid the correct amount in taxes.
Employees can also use pay slip details to claim deductions and report accurate tax information. On the other hand, business owners can use the information on pay stubs to ensure they are complying with tax regulations. For them, these documents can serve as a reliable record in case of an audit.
4. Guarantee legal compliance
In many regions, employers are legally required to provide employees with pay stubs. Employers who fail to provide pay stubs, may face penalties or legal issues.
Pay stubs can be used as evidence in labor disputes, when claims have been filed for unpaid wages or overtime. They protect employers against false claims and ensure employees receive fair compensation.
5. Budgeting and financial planning
Pay stubs help employees create a budget by providing a thorough breakdown of income and deductions. They can use this information to monitor their spending habits and plan for savings.
6. Track retirement and benefits
Pay stubs often show contributions to retirement plans (such as 401(k) or pension plans) and other benefits like healthcare, life insurance, and commuter benefits. Employees can track their retirement savings progress and confirm their contributions match their planned amounts, ensuring they’re on track with their financial goals.
7. Record-keeping
An employee’s pay stub provides a clear and organized record of earnings throughout the duration of their employment history. This information can be useful in these situations:
- During job changes, when negotiating pay
- When filing taxes
- During credit applications
- For future retirement planning
8. Identify payroll errors
Payroll errors can occur for various reasons, such as incorrect deductions, miscalculated hours, or processing issues. Regularly reviewing pay stubs allows employees to spot these errors quickly and bring them to the employer’s attention so that they can be corrected.
What is the legal requirement for providing pay stubs?
The Fair Labor Standards Act (FLSA) requires employers to maintain accurate records of the wages they pay their employees, but they do not specifically require them to provide pay stubs to workers.
Most states have their own laws in place dictating to what extent employers are required to provide pay stubs.
States will either be required to:
- Provide access to pay details
- Issue paper paychecks as well as give employees access to pay information electronically
Additionally, some states have no laws in place requiring them to provide pay stubs to employees.
States with no requirements
In the states below, employers are not required to give their employees pay stubs of any kind.
- Alabama
- Arkansas
- Florida
- Georgia
- Louisiana
- Mississippi
- Ohio
- South Dakota
- Tennessee
Access states
In the states listed below, employers are required to provide employees with access to their pay information, but do not necessarily have to provide a physical pay stub. This can be done through an online portal or other electronic means.
- Alaska
- Arizona
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Maryland
- Michigan
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New York
- North Dakota
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Utah
- Virginia
- West Virginia
- Wisconsin
- Wyoming
Access/print states
The states listed below require employers to issue paper-based paychecks to their employees. To do this, employers can either print and distribute physical pay stubs or provide employees with an easy way to print and obtain a physical copy of their pay stubs.
- California
- Colorado
- Connecticut
- Iowa
- Maine
- Massachusetts
- New Mexico
- North Carolina
- Texas
- Vermont
- Washington
Beyond the three classifications above, states are divided into two groups: "opt-in" or "opt-out.”
Opt-in states
- Employers must receive prior approval from their employees to send their pay stubs electronically.
- Currently, Hawaii is the only state with this requirement.
Opt-out states
- Employers follow both paper and electronic pay stub requirements.
- Workers are not legally required to receive pay stubs in any form.
- The current opt-out states include Delaware, Minnesota, and Oregon.
How often should pay stubs be provided?
Pay stubs are generally delivered alongside pay checks. The frequency at which pay stubs are sent follows the employee pay schedule.
- Weekly pay: Pay stub sent every seven days
- Bi-weekly pay: Pay stub sent every two weeks.
- Semi-monthly pay: Pay stubs are sent twice a month, typically on the 15th and last day of the month.
- Monthly pay: Pay stub sent once a month
How is a pay stub different from an invoice?
While both pay stubs and invoices are financial documents, they serve different purposes. A pay stub is generated by an employer and provided to an employee, providing details about their earnings, deductions, and net pay for a specific pay period. It focuses on the employee's compensation, taxes and other deductions made from their paycheck.
An invoice is generated by a business or service provider and sent to a client or customer. It outlines the goods or services provided, their corresponding costs, and the payment terms. An invoice is essentially a bill that a business sends to a client to request payment for work completed or products delivered.
Prevent payroll errors with Timeero
Issuing accurate pay stubs is important. The best way to generate precise pay slips is to use software to automate your payroll process.
Timeero, a powerful time tracking app, helps you track employees’ hours and generate pay stubs quickly and accurately.
Let’s take a look at a few of Timeero's features that can improve your company’s payroll process.
Time tracking
Traditionally, companies would have employees fill out time cards to document work hours and job codes. They soon learned this was not a reliable method for several reasons.
For starters, employers had to trust their workers were being honest, which was not always the case. Employees could easily overstate hours worked to receive more pay, causing employers to unknowingly overbill their employees.
Not to mention, manually calculating hours was a very time-consuming process. Employees would often forget to submit their timesheets on time, which prolonged the review process. Thankfully, innovative software solutions have significantly changed this entire process.
Timeero's time clock allows employees to clearly and accurately record the hours they have worked. Here’s how the feature works:
- Employees download the Timeero app onto their smartphone or tablet from either the Google PlayStore or Apple App Store.
- Once the app is downloaded, employees can sign into their accounts, which have been created by the company admins.
- To start Timeero's time clock, employees click “Clock In” to start recording hours. If workers want to go on break, they will select the “Start Break” button.
- When an employee’s shift is over, they will select the “Clock Out” button to stop recording time.
The software auto-generates timesheets for the employee, which include information about hours worked, including any overtime and breaks taken. Employers can use this information to make payments, ensuring all employees are compensated fairly.
Mileage tracking
For many companies, payroll includes mileage reimbursement. With Timeero’s mileage tracking feature, employees do not have to remember trip details or fill out manual mileage logs.
Timeero automatically tracks mileage when an employee is on the move. If your employees are prone to forget to track their mileage, the app records a GPS point on the map whenever an employee moves at a speed that exceeds 4.47 mph. Timeero simplifies payroll and expedites reimbursement by automatically calculating employees’ total mileage.
Automatic calculations
Timeero automates payroll calculations, reducing the likelihood of errors. When it comes to mileage, Timeero takes the total mileage driven and automatically multiplies it by an employee’s rate of pay or the IRS standard mileage rate, to calculate reimbursement.
Detailed reporting
Generate detailed reports to analyze company metrics and prove legal compliance. Reports can also be used to confirm employee compensation amounts.
When generating reports, you can filter data by multiple variables. We’ve listed a few types of reports Timeero creates below.
- Report by job
- Report by user or group
- Report by date range
- Report by totals only
- Report by mileage
- Breaks report
- Scheduled vs. actual hours worked
Integration with payroll software
Timeero seamlessly integrates with popular payroll software to easily transfer data and reduce administrative burden.
When you integrate Timeero with your payroll software, you can quickly reconcile expenses and expedite employee compensation.
To help you increase the efficiency of your payroll process, Timeero integrates with:
- Paychex
- Rippling
- Zapier
- Viventium
- Paylocity
- QuickBooks
- Gusto
- Xero
- ADP
Optimize your payroll process with Timeero
Using software like Timeero will help you automate your payroll process, expedite compensation and guarantee data accuracy.
Timeero’s ability to automatically calculate employee compensation simplifies pay stub creation. With the help of reports and mileage tracking, you can stay of on top of company expenses and resource allocation.
Frequently Asked Questions (FAQs)
Can I use a pay stub template to create pay stubs for independent contractors?
No. Pay stubs are typically used for employees who receive regular paychecks. Independent contractors are typically paid through invoices.
