How Does a Pay Stub Help Your Budget?

A pay stub is a detailed sheet provided by employers to employees that helps them keep track of their salary details. It is a document that provides complete information about the employee’s salary, deducted tax, and the outstanding amount. It could be an electronic document or a manual one.

Most states in the U.S.A. urge employers to provide paystubs to keep a record of the total hours worked by their employees. Some states do not require it, but employers are advised to provide the pay slip as Fair Labor Standards Act considers it a mandatory document.

Types of paystubs:

The company providing salary through physical paychecks is more likely to attach the paystub in a document form along with the salary paycheck. But the companies using digital channels for salary transfer often use online payroll software to make pay stubs. The payroll processing system also allows employees to create a pay stub for their records manually.

What is a pay stub generator?

A pay stub generator is also known as a pay stub creator or pay stub maker. It is an online tool that helps to generate automatic proof of income for employees. Its easy-to-use interface makes it a convenient choice for companies. These pay slips are handy while filing the yearly tax return.

What details are included in a pay stub?

The Pay stubs may include the following information:

Employment details: This section includes the basic information about both employer and employee, such as business name, address, salary, hours worked, pay date, etc.

Gross salary: It mentions the total salary of an employee paid by the company without including tax deductions.

Government tax: This section includes the amount deducted from the salary for tax payment. An additional state tax may be deducted depending on the company’s current location.

Vacation record: All the paid or sick leaves taken by the employee is mentioned here. It helps to keep a record of the number of utilized holidays and those which are remaining.

Benefits and insurance: All the information about benefits provided to the workers is included, and the relevant deductions are mentioned.

Back pay amount: Any outstanding amount withheld by the employee for some reason is mentioned here.

Net salary: The final salary after all deductions and taxes is mentioned in this section. This specified amount is the employee’s earnings for the month.

Employee benefits:

Pay stubs can help the employees find a good rental home, as the landlords often ask for proof of income before renting out. This pay slip can assure the landlords that the employee earns enough to pay the rent on time. It may also help to get a bank loan as the financial record is required for issuing a loan.


Pay stubs make life easier for individuals as it helps to devise monthly budgets according to their earnings. It is a convenient tool for companies and employees alike. But employers need to ensure all information is inputted into the check stub maker correctly before using it for their business to avoid any potential error.