Small Business GuideUpdated for 2026

Best Paystub Generator for Small Business

Running a small business? You need professional paystubs for your employees without the cost of enterprise payroll software. This guide helps you find the right paystub generator for your needs—and stay compliant.

41

States require paystubs

$3-15

Average cost per paystub

2 min

Average creation time

Key Features for Small Business Paystub Generators

Not all paystub generators are built for employers. Here's what to look for when choosing one for your small business:

Automatic Tax Calculations

Must-Have

Calculates federal, state, Social Security, and Medicare taxes based on 2026 rates. No more manual math or tax table lookups.

Multi-Employee Support

Must-Have

Create paystubs for multiple employees with different pay rates, hours, and tax situations. Bulk generation saves time.

State Compliance

Must-Have

Supports all 50 states including complex ones like California (SDI, PFL) and New York (PFL, disability). Critical for legal compliance.

YTD Tracking

Must-Have

Automatically calculates year-to-date totals for each employee. Essential for W-2 preparation and employee records.

Custom Branding

Add your company logo and customize the paystub layout. Professional appearance builds employee confidence.

Quick Generation

Create paystubs in 2-3 minutes instead of 30+ minutes with spreadsheets. Time saved = money saved for small businesses.

State Paystub Requirements

41 states plus DC require employers to provide paystubs. Here's what some major states require:

California

Must include gross wages, total hours, deductions, net wages, pay period dates, employee name, and last 4 of SSN.

New York

Must show hours worked, rates of pay, gross wages, deductions, allowances claimed, and net wages.

Texas

No state law requiring paystubs, but federal record-keeping still applies. Best practice to provide anyway.

Florida

No state law requiring paystubs, but recommended for employee relations and legal protection.

Illinois

Must provide upon request. Include gross pay, hours, deductions, and net pay.

Pro tip: Even if your state doesn't require paystubs, providing them protects you from wage disputes, helps employees file taxes correctly, and is necessary for employees applying for loans or housing.

Paystub Generator vs. Full Payroll Software

Paystub Generator

Best for: 1-5 employees, simple payroll

  • $3-15 per paystub
  • No monthly subscription
  • Instant document creation
  • No learning curve
  • You handle tax deposits

Full Payroll Software

Best for: 5+ employees, complex needs

  • $20-200+/month
  • Automatic tax deposits
  • W-2/1099 filing
  • Direct deposit
  • Setup time required

How to Create Employee Paystubs (Step-by-Step)

1

Enter Your Business Information

Add your company name, address, and EIN. This appears as the employer section on the paystub.

2

Add Employee Details

Enter employee name, address, and filing status (from their W-4). Include employee ID or last 4 of SSN if desired.

3

Input Pay Period & Earnings

Set the pay period dates, then enter hours worked and hourly rate (or salary amount). Add overtime, bonuses, or commissions if applicable.

4

Review Automatic Calculations

The generator calculates federal tax, state tax, Social Security, Medicare, and any additional deductions. Verify everything looks correct.

5

Download & Distribute

Download the PDF and provide it to your employee with their paycheck. Keep a copy for your records (required for 3+ years in most states).

Frequently Asked Questions

Do small businesses need to provide paystubs?

It depends on your state. States like California, New York, and Colorado require employers to provide detailed paystubs to employees. Other states like Texas and Florida have no such requirement. However, even in states without requirements, providing paystubs is best practice—it protects you legally, helps employees understand their pay, and is necessary for proper record-keeping.

What should a small business paystub include?

A compliant paystub should include: employer name and address, employee name, pay period dates, gross pay, itemized deductions (federal tax, state tax, Social Security, Medicare), net pay, hours worked (for hourly employees), and year-to-date totals. Some states require additional information like accrued PTO or sick leave.

Can I use a paystub generator instead of payroll software?

Yes, for small businesses with just a few employees, a paystub generator can be more cost-effective than full payroll software. However, remember that a paystub generator creates documents—you're still responsible for calculating withholdings correctly, depositing taxes, and filing quarterly returns. For businesses with 5+ employees, consider payroll software that handles both.

How much does a paystub generator cost for small businesses?

Paystub generators typically charge $3-15 per paystub, or offer subscription plans ranging from $10-50/month for unlimited paystubs. Compare this to payroll software ($20-200/month) or accountants ($50-150/month). For businesses with 1-5 employees and simple payroll, a per-paystub generator is often most economical.

Is it legal to make my own paystubs for employees?

Yes, it's completely legal to create your own paystubs for employees. As an employer, you're responsible for accurate payroll records regardless of how you create them. The key is accuracy—your paystubs must correctly reflect actual wages paid, taxes withheld, and hours worked. Many small businesses use paystub generators instead of expensive payroll software.

How do I handle different pay types (hourly vs salary) in paystubs?

Good paystub generators support both hourly and salaried employees. For hourly workers, enter hours worked and hourly rate; the system calculates gross pay. For salaried employees, enter the salary amount per pay period. Both types should show the same deductions breakdown (federal, state, FICA taxes) and YTD totals.

Start Creating Professional Paystubs

Join thousands of small business owners who use MakePaystubPro for employee paystubs. Automatic tax calculations, all 50 states supported, instant PDF downloads.