Establishing your own business has many advantages. 

However, managing your employers also means you have to send in monthly pay stubs and yearly W-2 forms.

Although this process sounds difficult at first, you must send out these documents as you are required to do so by law. Fortunately, there is an easy and quick way for you to create your own pay stubs and W-2 forms using our free online generator!

So, keep reading to find out everything you need to know about pay stubs, W-2 forms, and which one is needed to pay your taxes.

A pay stub is a document that employers send to their employees for a detailed breakdown of their salaries.

A W-2 form is a document that showcases the total wage amount of the employee after the tax reduction.

The best way to file your taxes is through the W-2 form.

Filing your taxes with your last pay stub is possible but not recommended as it is not considered an accurate statement of your income.

The most efficient way to make W-2 forms and pay stub is to use an online generator.

 a document that lists all details of an employee’s wage

, such as the total wage, tax reductions, and any additional contributions. Additionally, the pay stub helps employers keep track of their employees’ wages.

Employers are required by law to use pay stubs, and they must send them to employees every month in addition to their paychecks. Additionally, 

, pay stubs should be kept for four years.

If you’d like to create a pay stub, use our 

 The process will only take around two minutes, and all you have to do is fill out the template!

a document that lists the employee’s income and the total amount of taxes that were held back from their paycheck

. The employer should send the W-2 form to their employees at the beginning of the new year or at the end of the current year. Moreover, this form is used to file all taxes, including federal and state taxes.

A W-2 form is a document that the IRS requires employers to send because it shows all information about the employee’s wages.Therefore, the document must be sent to both the employee and the IRS.

Besides the tax deductions, the W-2 form also lists the amount spent on contributions such as health insurance and any additional savings accounts.

To create your own W-2 form, head over to our 

How to File Taxes With Your Last Pay Stub

It is not usually recommended to file taxes with your last pay stub

.That’s because your last pay stub is not considered an accurate statement of your income, and chances are they haven’t listed information that will make you file a full tax return.

If it comes to a situation where you need to file a tax return that has missing information, you will be asked to file an additional amended return. This will make the process more costly, and the IRS will take longer to issue you a refund.

If you’re unable to file your taxes with a W-2 form and want to use your final pay stub instead, use 

 The form is available on the IRS website,and all you need to do is download it and attach it to your last pay stub. In this case, your pay stub must include detailed information, such as:

Any additional deductions or compensations

Once you ensure that the pay stub includes all of the above-mentioned information, attach it along with the IRS Form 4852 to your other federal tax return form and send it to the IRS.

It’s important to note that each US state has different regulations when it comes to filing taxes without a W-2 form. You should contact a representative of your state to get any additional information about your taxes.

Comparing the Last Pay Stub to a W-2 Form

The main difference between your last pay stub and the W-2 form is that when you compare the two, you will get two different outcomes

. The pay stub, in this case, will show the total income amount that the employee has received. On the other hand, the W-2 form shows the total taxable earnings that an employee has received throughout the entire year.

Therefore, the W-2 form lists all of the taxable wages that have been noted after pre-tax deductions.

The pre-tax deductions include everything from health insurance plans to 401(k) contributions. Your income amount will generally be higher than what is listed on the W-2 form.

Why is Gross Earnings Different on Your W-2 Form Compared to Your Last Pay Stub?

Here are some of the most common reasons why your gross earnings are different on your W-2 form compared to your last pay stub:

#1. Last Pay Stub Contains Non-Taxable Income

One specific scenario is when the last pay stub contains non-taxable income. 

This can include anything from reimbursing gifts, compensation, benefits, etc. Usually, these types of non-taxable incomes are listed on the employee’s paycheck.

For example, let’s say that Jake’s total gross income is $78,000, and during the year, he received $6,000 in reimbursement compensation. The total taxable wage that Jake will report on his W-2 form will be $72,000. ($78,000 – $6,000 = $72,000)

#2. Last Pay Stub Contains Company Retirement Plan

If your last pay stub contains a company-planned retirement plan, it will not match your W-2 form. 

Company retirement plans fall under the 401(k), 403(b), or Simple IRA plan.Due to this plan, your federal taxes and wage income will be reduced.

As an example, if Amy’s total gross income is around $85,000 and, during the year, she has decided to contribute around $5,000 towards her retirement plan, her total wage will be $83,000. ($85,000 – $5,000 = $83,000)

Usually, a company will offer a health insurance plan to its employees. 

If the employee has agreed to be part of the plan, the total gross amount will be deducted

. Moreover, company health insurance plans are usually the main reason why your W-2 form doesn’t fully match your last pay stub.

Let’s take Mikey as an example. If his full gross income for the year is around $106,000 and he decides to contribute around $12,500 to his health insurance plan this year, his total taxable wage will be $93,500. [$106,000 – $12,500 = $93,500]

You can get a W-2 form from your employer, as they need to give you copies of the form at the end of each year.

 If by any chance you cannot obtain a copy from your employer in time, you can also get it from 

However, the quickest way to obtain a W-2 form is to get it from your employer. The employer is required to submit the form to the SSA, and once the administration has processed it, they can send the form to the IRS to check for federal tax information.

A W-2 form can either be sent by the employer or the provider of the payroll. Additionally, they can send it:

The W-2 form will be sent to you if you have earned at least $600 in the current year. Moreover, you will receive a 

 instead of a W-2 if you are a contracted worker instead of an employee of a company.

You can get your last pay stub by either contacting your employer or a representative of the company’s human resources department.

 They will tell you what to do to obtain your last pay stub and how long it will take to receive the document.

After you get an answer, you will most likely need to make a request to get your last year’s pay stub. This process usually includes the following:

Sign the form and send it either by email or mail

Contact the representative to make sure they received the request

Once you clarify the waiting time, the representative can send you the pay stubs by mail or email.

Ultimately, whether you’re an employer or an employee, you will need to tackle both pay stubs and the W-2 form. Both documents are required by law and serve as proof of your tax payments and deductions.

Although the process might sound tedious, it doesn’t have to be. Use our pay stub and W-2 form generator, which will easily guide you through a step-by-step creation process!
We can also help you generate other documents, like 

Read our easy-to-follow guide to learn how to file taxes with the last pay stub and create various legal documents with an online generator!

How to File Taxes With the Last Pay Stub [2023]

Nowadays, employers need to offer various benefits if they want to recruit and retain employees.

The value of these benefits is known as imputed income, and employees need to pay taxes on their value and report it to the IRS by filling out W2-Forms and pay stubs.

But how do you report imputed income on a pay stub?

 Although it might seem difficult at first, don’t worry—we’ve got your back! Keep reading to find all the answers you need.

Imputed income represents the benefits that an employee receives that aren’t part of their net pay.

The most common examples of imputed income include employee discounts, personal use of company cars or cell phones, educational aid, etc.

Fringe benefits are the benefits that are used to compensate employees beyond their regular wages and can be taxable or non-taxable.

Some common fringe benefits are gym memberships, de minimis benefits, housing allowance, moving expenses, etc.

Determine the fair market value of benefits

Simply put, "imputed income'' refers to the benefits an employee receives that aren’t part of their wages or salary. It’s the cash equivalent value of an employee’s non-cash benefits. This income is added to the employee’s gross wage, but it isn’t included in their net pay.

The best way to understand imputed income is through an example. For instance, if your employee completes a project before the deadline and you award them with a $50 gift card, that is considered an imputed income benefit.

Most importantly, as an employer or a business owner, you must report your employees’ imputed income on W-2 forms, as it’s taxable. Generally, both you and your employees need to pay FICA tax, which includes a 1.45% Medicare tax and a 6.2% Social Security tax on earnings.

Lastly, imputed income benefits can be given to employees in the US as fringe benefits, which we’ll go over shortly.

Now, let’s explain fringe benefits because you’ll need to identify them when reporting imputed income for your employees.

As you’ll notice, imputed income and fringe benefits overlap. The biggest difference between the two is that the former is legally required, whereas the latter isn’t and is handed out at the discretion of the business owner.

In layman’s terms, fringe benefits are used to compensate employees beyond their regular wages. For example, they might include stock options, cell phones, gym memberships, snacks, meals, etc.

Most of the time, fringe benefits are promised in job ads to attract new employees and job hunters. They are an easy way to motivate someone to work extra, but keep in mind that fringe benefits can be both taxable and non-taxable.

Generally, the majority of fringe benefits come in the form of a service or a product instead of a cash payment. This makes them taxed based on their cash-value equivalent.

The most common taxable fringe benefits are:

Employer-provided cell phone for non-business use

Still, there are exemptions for this, as some fringe benefits are non-taxable—according to the IRS—and deducted on a pretax basis. They are reported on the annual tax return and include benefits such as:

Medical insurance plans, such as health, vision, and dental care

Qualified employee discounts and transportation benefits

Whether you’re an employer or an employee, you need to have a crystal-clear picture of what is considered imputed income. Here are some of the most common examples of imputed income you can see:

Employer gifts, such as cash and gift cards

Personal use of a company’s or employer’s car

Non-deductible moving expense reimbursements

Educational assistance and reduction of tuition

Any use of an employer’s issued cell phone

Health insurance for non-dependents (e.g., a domestic partner)

Employee deduction assistance over the excluded amount

Adoption assistance that exceeds the tax-free maximum

Group-term life insurance that exceeds more than $50,000

Employee’s income from exercising nonstatutory stock options

Employee’s taxable income from the issuance of restricted stock

Meals and lodging, except during tax-deductible business travel

Travel expenses not related to business (e.g., paying for an employee’s vacation)

Care assistance for an employee’s dependence that exceeds the tax-free maximum

Gym memberships and other fitness benefits, such as wellness program incentive

Benefits that are not counted as imputed income are called “de minimis benefits." The IRS finds these benefits impractical and unnecessary to keep track of, as they hold little value and are unusual and not frequent.

, anything with a value less than $100 is excluded from imputed income and is considered a de minimis benefit.

Some of the exemptions from imputed income include:

Transportation expenses for overtime work

Group-term life insurance for dependents with a face value of up to $2,000

Use of a cell phone provided by an employer for business purposes

Gifts such as books, flowers, or fruits provided under special circumstances (e.g., International Women’s Day)

How to Report Imputed Income for Employees

As previously mentioned, employees are required by the IRS to report imputed income on W-2 forms every year. The deadline for this is usually January 31st, and here’s how you can do it.

The first step requires you to identify which fringe benefits are taxable, as they are the ones that will end up on the W-2 form. For example, if you are giving an employee $2,000 in education assistance per year and, let’s say, $500 for a gym membership, you will have to list both of these benefits.

#2. Determine the Fair Market Value of Benefits

As some fringe benefits come in the form of services or products, you will need to determine their fair market value or cost. "Fair market value" is the price at which the product or service would sell on the open market.

For example, if you are providing an employee with a company car, you need to determine how much money the employee would have to pay to obtain the vehicle on their own. You should also consult 

 for more rules on car fair market valuation.

Note that you can find other important information on taxation and reporting of imputed income in Publication 15-B.

Once you’ve calculated all fringe benefits for your employee, you need to report them on the W-2 form. The easiest way to fill in this form is to use an 

, as you’ll only have to enter the required information and download the document.

Usually, imputed income is listed in boxes 12a through 12d.

How To Report Imputed Income on Pay Stubs

Other than reporting imputed income annually on the W-2 form, you also need to display imputed income every month on pay stubs. This is an important legal document that contains all the details regarding your employee’s pay (e.g., work hours, gross wages, net pay, etc.).

Keep in mind that all employers are required to provide their employees with a pay stub and keep it for at least 4 years, 

The easiest way to make pay stubs and report imputed income on them is to 

. The process itself takes only a couple of minutes, after which you can download the document right away!

#1. Why do I have imputed income on my pay stub?

All employers are required by law to report imputed income annually on W-2 forms and monthly on pay stubs. This value is tracked, reported to the IRS, and subject to:

#2. Is imputed income an earning or deduction?

Imputed income is treated as income because employers are required to include it in their W-2 forms for tax purposes.

#3. How much do you get taxed on imputed income?

As of 2022, for imputed income, you are taxed 6.2% for Social Security and 1.45% for Medicare.

#4. What are some examples of imputed income?

Some examples of imputed income include employee discounts, awards, prizes, employer gifts (e.g., gift cards and cash), personal use of company cars or cell phones, health insurance for non-dependants, etc.

Struggling with imputed income and fringe benefits? Find out how to report imputed income on a pay stub with zero complications!

What is Imputed Income on a Pay Stub? Definition and Examples

A salary pay stub is an important document that has multiple benefits for both you, the employer, and your employees. Like all legal papers, even this one seems difficult to grasp at first, but don’t worry—you’ve come to the right place!

 will help you get familiar with salary pay stubs, and not only that, but you’ll also learn how to create one effortlessly!

So, without further ado, let’s jump straight into the action!

Also known as a “payslip,” “paycheck stub,” “wage statement,” or “check stub,” a salary pay stub is a document that contains key details regarding the employee’s pay.

A salary pay stub lists all the wages that the employee earns during a pay period, as well as year-to-date payroll information. Most importantly, the document breaks down all taxes and deductions taken from the employee’s gross salary.

In most cases, HR and payroll staff are the ones who create, manage, and hand out pay stubs. Employees receive them each pay period, separately from the paycheck.

Pay stubs used to be printed on paper and included in a wage envelope. Yet, most employers nowadays opt for electronic forms, which can easily be emailed to employees.

Are Employers Obligated to Provide Pay Stubs?

Yes—as an employer, you are obligated to provide your employees with pay stubs. They fall under the 

, which requires you to keep records of your employees’ work hours and payments.

Other than for legal reasons, you should also create pay stubs because they provide you with an exact record of your employees’ wages. These documents also ensure you pay your contributions and taxes correctly.

Lastly, pay stubs are also important for your employees, as they can serve as proof of their income and employment. This means that with this document, your employees can apply for housing, loans, or any other form of credit.

Although you can create a salary pay stub on your own, you should note that it’s a delicate and time-consuming process. That’s why your best bet would be to use an 

With our pay stub maker, the process of creating this important document is really simple, as all you have to do is complete the following steps:

The first thing you need to do is customize your pay stub by choosing one of the six available templates. The templates vary based on how much information they show about your business and the way they display information.

For example, Template 1 is great for larger businesses, as it allows you to display your company, file, department, clock, and voucher numbers.

On the other hand, Template 3 is more compact and displays only the basic information, such as gross wages, deductions, taxes, etc.

Meanwhile, templates 4, 5, and 6 allow you to choose between a gray, green, or blue color pattern.

You should play around with this feature a bit and choose a template that’s most suitable for your company. After all, providing your employees with a professional-looking pay stub goes a long way.

Once you’ve chosen a salary pay stub template, you need to state:

Auto Calculator does all the math instead of you and automatically calculates your employees’ deduction total and net pay. You can turn it on or do the numbers on your own if you prefer.

As you need a pay stub for salaried workers and not contractors, proceed to select the “Employee” option.

What the receiving party’s payment type is. 

Select whether you are paying your employee daily, weekly, biweekly, semimonthly, quarterly, semiannually, or annually.

A YTD calculator is a feature that lets you determine your employees’ annual salary based on how much work they completed, how many days off they had, etc.

You can choose how many copies of the pay stub you need. It’s always smart to have one copy for yourself and one copy for your employee.

Next, you need to enter the required information regarding your company, such as:

You can also add the payroll processor logo or the logo of your company.

After providing your company’s information, you need to fill in your employee’s details, including:

In the “Earnings Statement'' section of the pay stub template, you first need to specify the pay period and pay date. The former specifies the length of time during which an employee works to earn their salary. The latter is the exact date when the employee receives their paycheck.

After entering the exact pay period and pay date, you can enter your employee’s earnings, which count toward their gross pay. For this, you need to specify whether they have received any tips or went on vacation, how many days off they had, etc.

Then, you need to fill in the deductions, including:

Lastly, if you’ve turned on the automatic calculator in Step #2, the deduction total and net pay will be calculated automatically, as you can see in the picture below:

After you’ve filled out all the previous fields, you can review your pay stub!

All the information you have previously entered will be displayed in this section on a pay stub so that you can check that everything’s in order. We advise you to go over all of the details twice and make sure you haven’t missed anything.

You can also change the salary pay stub template again and see how it looks in a different color pattern or change the order of displayed information.

To get a better idea of what the final result should look like, here’s a salary pay stub example:

Once you’re fully satisfied with your pay stub, you can go ahead and download it.

First, you must agree that you won’t use Paystub.org for any illegal purposes and accept our 

. Then, you can proceed to checkout and download your brand-new pay stub!

Typically, a pay stub includes the following:

 This section specifies the company name, employer’s phone number, company location, and similar information on the employer’s business. It also needs to show the relationship and tenure of engagement the employee has with the employer.

 This section needs to contain the employee’s name and ID, phone number, Social Security number, place of residence, and other vital information.

Here, employers need to specify the date when they issued the pay stub as well as the employee's pay date.

This section should specify the amount of money the employee is paid per hour and whether they’re paid weekly, biweekly, monthly, etc.

A salary pay stub needs to display the exact number of hours an employee has worked during the pay period.

“Gross wages” is a term that refers to an employee’s full pay before taxes and deductions are taken into consideration. The easiest way to calculate your employee’s gross pay is to simply divide their annual salary by the number of pay periods in the year. Don’t forget to include other compensations they’ve received, such as bonuses, commissions, overtime, tips, etc.

 The most common deductions include federal tax, state tax, SDI, SUI, FLI, and other similar taxes and types of insurance.

 Employees usually have to pay their own payroll taxes, which this section needs to include. They aren’t deducted from the employee’s gross wage and can include national insurance, 401(k) plans, health insurance premiums, etc.

 receive their paychecks via direct deposit. That’s why most salary pay stubs need to contain direct deposit details, such as bank account numbers, bank routing numbers, and other information if necessary.

#1. How long should I keep my salary pay stubs?

Equal Employment Opportunity Commission (EEOC)

, you should keep your salary pay stubs for at least one year.

A salary pay stub is a document that you're obliged to provide to your employee. Read this article to find out how to acquire it hassle-free!

Create Your Salary Pay Stub in 2022: Step-by-Step Guide

Whether you’re a freelance or full-time writer, you need to determine exactly how much your clients need to pay and send them a writer invoice. 

Some companies don’t even want to pay the writer if they don’t provide this important legal document.

So, what’s the best way to create a writer invoice, and why is it so important?

If you want to find the answer to this question, you’ve come to the right place! We’ll answer your questions about writer invoices and show you how to create these documents in a few easy steps.

A writer invoice is a financial document outlining the services you provide to the client and the amount due in return.

 It also serves as proof that a transaction actually happened.

Whether you’re part-time, full-time, or a freelance writer, you need an invoice for each project you take on, as it allows you to:

Easily keep track of the services you have provided to different clients

See which clients have missed due dates (if any)

Avoid missing or late payments from your clients

Creating a writer invoice doesn't have to be difficult. Learn all about this key document and make one with our online invoice generator!

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