A pay stub is a complete statement of your earnings during a specified period of time. A fundamental paycheck will include the employee’s name, hours worked, gross wages, and deductions against the earnings. According to the company bylaws, the paystub is issued weekly or twice a month.

When employers generate a pay stub, the document’s information applies to tax and finance-related scenarios. Therefore, accuracy is necessary. A paystub generator will allow you to create the checks quickly and save time.

However, the legality of the service is still unclear, which we hope to eliminate with today’s discussion. Continue reading to learn everything about a paystub generator.

How to define a paystub generator?

paystub generator

A paycheck generator is a software or online tool that helps employers and individuals to create a pay stub based on user information. There are services in the market that will provide you with the same features. However, they are expensive. Their charges depend on the number of stubs or a monthly subscription. On the other hand, a paycheck generator is less costly and perfect for small businesses seeking to save costs.

When you research the legality of the pay stub generator, you are greeted with contradictory information. As a result, you cannot make a concrete decision. According to federal laws, employers are not obligated to forward pay stubs to their employees.

However, state laws will mandate that employers transfer the information. These laws vary depending on the state you reside. Furthermore, some states will accept printed stubs. On the other hand, some are okay with paper stubs too.

Experts argue since paystub generators can create false documents, their services are illegal. However, it is not valid. Creating a false paystub is illegal, not the tools used to generate it. A falsely generated document can land the employer and the employee in legal trouble.

What to know about pay stub misrepresentation?

about pay stub

Malicious individuals may use false pay stubs to attain an unfair economic advantage. Therefore, we must have the relevant knowledge to identify the misrepresentation. Do not engage with such individuals, as falsely generated pay stubs can result in hefty fines and jail time.

The intention

Since paystubs are proof of income and hire, individuals may use them to create false scenarios. Even though the actions have subsided, there are still instances where people constantly engage with false paystubs to increase their income so they may get a loan. As a result, finance institutions now request bank statements and rigorous income testing to verify income.

Renters will also use false paystubs to increase their rental income. As a result, they qualify for flexible leases.

Employers use fake pay stubs to pay the employees without transferring the amount

Avoid taxes


Sometimes employers will generate false information on a paystub to withhold more taxes from their worker’s checks. Additional withholding taxes are part of the deduction that will reduce the net pay. However, the employer will report the actual amount to the revenue authority while keeping the difference for themselves.

The Bottom Line

One should never create, publish, or generate false pay stubs. Anyone who interacts with these false templates is equally guilty. Therefore, verify the income source and only accept computer-generated paystubs which verify the source and the payee.

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