How to Generate a US Pay Stub With Federal and State Taxes

Why US Pay Stubs Matter for Every Employer

The Fair Labor Standards Act (FLSA) requires employers to keep accurate payroll records, but it does not mandate providing pay stubs to employees. However, most US states have their own laws that do require written or electronic pay statements. In practice, issuing a clear pay stub with every paycheck is essential for compliance, transparency, and avoiding disputes.

Whether you operate in one state or across many, understanding what belongs on a US pay stub keeps your business protected.

What Should Appear on a US Pay Stub

While requirements vary by state, a thorough pay stub typically includes:

• Employee name, address, and last four digits of SSN
• Employer name and EIN
• Pay period start and end dates
• Gross earnings (regular, overtime, bonuses)
• Federal income tax withheld
• FICA taxes (Social Security and Medicare)
• State and local taxes withheld
• Pre-tax deductions (401(k), health insurance, HSA)
• Post-tax deductions (Roth 401(k), garnishments)
• Net pay
• Year-to-date totals for each category

Federal Income Tax Withholding

Federal income tax is calculated based on the employee's W-4 form, which determines filing status and any adjustments. The 2025 federal tax brackets for a single filer are:

Taxable Income	Rate
Up to 11,925	10%
11,926 -- 48,475	12%
48,476 -- 103,350	22%
103,351 -- 197,300	24%
197,301 -- 250,525	32%
250,526 -- 626,350	35%
Over 626,350	37%

Employers use IRS Publication 15-T and the employee's W-4 to determine the correct withholding each pay period.

FICA Taxes: Social Security and Medicare

FICA is split between employer and employee in equal shares:

Tax	Employee Rate	Employer Rate	Wage Base (2025)
Social Security	6.2%	6.2%	176,100
Medicare	1.45%	1.45%	No limit
Additional Medicare	0.9% (employee only)	--	Earnings over 200,000

Both the employee and employer portions of FICA must be tracked, though only the employee share appears as a pay stub deduction.

State Tax Variations

State income tax rules differ dramatically:

Category	Examples
No state income tax	Texas, Florida, Nevada, Wyoming, Washington, Tennessee, South Dakota, Alaska, New Hampshire
Flat rate	Illinois (4.95%), Pennsylvania (3.07%), Indiana (3.05%)
Progressive brackets	California (1% -- 13.3%), New York (4% -- 10.9%)

Some states and cities also levy local taxes. Always verify the rules for every jurisdiction where your employees work.

Common Pre-Tax Deductions

Pre-tax deductions reduce taxable income and must be itemised on the pay stub:

Deduction	Typical Range
401(k) / 403(b)	Employee-elected percentage
Health insurance premiums	Varies by plan
HSA contributions	Up to 4,300 (individual) / 8,550 (family)
FSA contributions	Up to 3,300

Step-by-Step: Generating a US Pay Stub With CleverSlip

Step 1 -- Choose the US Template

Log in to CleverSlip and select the United States pay stub template. It includes pre-built sections for federal tax, FICA, state tax, and common deductions.

Step 2 -- Enter Company and Employee Information

Add your business name, EIN, and the employee's details including name, address, and SSN (last four digits). Select the pay frequency -- weekly, biweekly, semi-monthly, or monthly.

Step 3 -- Input Earnings

Enter regular hours, overtime hours, and any bonus or commission amounts. CleverSlip calculates gross pay automatically based on the rates you provide.

Step 4 -- Apply Tax Withholdings and Deductions

Enter the federal income tax amount derived from the employee's W-4. Add Social Security (6.2%) and Medicare (1.45%) deductions. Include the applicable state tax and any pre-tax deductions such as 401(k) or health insurance.

Step 5 -- Review, Download, and Distribute

CleverSlip computes net pay and populates year-to-date totals. Review everything for accuracy, then download the pay stub as a PDF or send it directly to your employee.

Simplify Multi-State Payroll

US payroll is complicated by the patchwork of federal, state, and local requirements. CleverSlip gives you a clean, professional template that covers all the essential fields so nothing falls through the cracks. Generate your first US pay stub in minutes and keep every pay period documented.