The short answer
To create a pay stub from hourly pay, follow these steps:
- Multiply the hourly rate by the regular hours.
- Add overtime pay: rate times 1.5, times the overtime hours.
- Add tips, bonuses or shift pay to reach gross pay.
- Subtract taxes and deductions to reach net pay.
- Add year to date totals, then enter it all in a stub tool.
You know your hourly rate. You know your hours. But turning those two numbers into a full pay stub takes a few more steps, and it is easy to get one wrong.
This guide shows you how to create a pay stub from hourly pay, one formula at a time. You will see how overtime works, which taxes come out and how to check your math. There are three worked examples you can compare with your own numbers, plus a quick table that turns any hourly rate into a yearly pay.
What an hourly pay stub shows
An hourly stub has the same parts as any stub, plus two lines that matter more: the rate and the hours. Many states require both on the stub. A good one includes:
- Employer name and address, and the worker's name
- The pay period dates and the pay date
- The hourly rate
- Regular hours and overtime hours, on separate lines
- Gross pay, which is everything earned before deductions
- Each tax and deduction on its own line
- Net pay, which is what you take home
- Year to date totals
If you want a closer look at each part, read a plain look at every part of a stub.
Step 1: Gather your exact hours
Use time sheets, a time clock report or your schedule. Do not round up or guess. Split the hours into regular hours and overtime hours for each work week in the pay period.
Step 2: Work out regular pay
Multiply your hourly rate by your regular hours. At $20 an hour for 40 hours, regular pay is $800.
Step 3: Work out overtime pay
Most hourly workers get time and a half for hours over 40 in a work week. First find the overtime rate by multiplying your hourly rate by 1.5. Then multiply by the overtime hours. At $20 an hour, the overtime rate is $30. Five overtime hours add $150.
Step 4: Add other earnings
Add anything else you earned in the period, such as bonuses, tips or shift pay. Each one should have its own line. The total of all earnings is your gross pay.
Step 5: Subtract taxes
Taxes come out in this order of importance for most workers:
- Federal income tax, based on your pay and your W4
- State income tax, if your state has one. Look up your state's rules first.
- Social Security, 6.2 percent of gross pay
- Medicare, 1.45 percent of gross pay
Want to see how this plays out in a real state? Try estimating take home pay in New Jersey or take home pay in Nevada.
Step 7: Add year to date totals
Year to date means the running total since January 1. Add this period's numbers to the totals from the last stub. Learn how running totals are built.
Skip the long math
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Three worked examples
All three are for a single filer in a state with no income tax, using 2026 federal figures. Federal tax is an estimate based on the standard deduction. Real payroll systems use IRS payroll tables and your W4, so your result can differ by a few dollars.
Example 1: part time, $18 an hour, 38 hours, paid weekly
| Line | Amount |
|---|
| Regular pay (38 hours at $18) | $684.00 |
|---|
| Gross pay | $684.00 |
|---|
| Federal income tax (estimate) | $40.16 |
|---|
| Social Security | $42.41 |
|---|
| Medicare | $9.92 |
|---|
| Net pay | $591.51 |
|---|
Example 2: overtime, $22 an hour, 46 hours, paid weekly
| Line | Amount |
|---|
| Regular pay (40 hours at $22) | $880.00 |
|---|
| Overtime pay (6 hours at $33) | $198.00 |
|---|
| Gross pay | $1,078.00 |
|---|
| Federal income tax (estimate) | $87.44 |
|---|
| Social Security | $66.84 |
|---|
| Medicare | $15.63 |
|---|
| Net pay | $908.09 |
|---|
Six extra hours earned $198, not $132. Time and a half makes a big difference.
Example 3: two pay rates, paid every two weeks
A worker spends 60 hours at $18 doing regular work and 20 hours at $21 on a skilled task.
| Line | Amount |
|---|
| Regular work (60 hours at $18) | $1,080.00 |
|---|
| Skilled work (20 hours at $21) | $420.00 |
|---|
| Gross pay | $1,500.00 |
|---|
| Federal income tax (estimate) | $96.15 |
|---|
| Social Security | $93.00 |
|---|
| Medicare | $21.75 |
|---|
| Net pay | $1,289.10 |
|---|
Each rate gets its own line, so anyone reading the stub can follow the math.
Hourly to yearly pay
A full time worker puts in about 2,080 hours a year, which is 40 hours for 52 weeks. Multiply your rate by 2,080 for a yearly figure before taxes. Part time workers should use their real weekly hours instead.
| Hourly rate | Every two weeks (80 hours) | Yearly (2,080 hours) |
|---|
| $15 | $1,200 | $31,200 |
|---|
| $18 | $1,440 | $37,440 |
|---|
| $20 | $1,600 | $41,600 |
|---|
| $25 | $2,000 | $52,000 |
|---|
| $30 | $2,400 | $62,400 |
|---|
These are gross numbers, before any tax comes out. If you are paid twice a month, the hours in each pay period change slightly, since 2,080 hours divided by 24 pay periods is about 86.7.
Overtime rules in plain words
- The federal rule. Most hourly workers get time and a half for hours over 40 in a work week.
- The work week matters. Overtime is counted by the week, not by the pay period. In a two week pay period, figure each week by itself.
- Some states add daily overtime. States such as California and Nevada have extra rules for some workers. Check your state before you build a stub.
- Some workers are exempt. Certain salaried roles do not get overtime. Hourly workers are usually covered.
Use real hours. Do not move hours between weeks to dodge overtime, because that can break wage laws.
Payroll and HR: who handles hourly pay
At work, payroll and HR share the job. HR usually sets the hourly rate, approves raises and changes, and keeps the worker's records. Payroll takes the hours and turns them into gross pay, taxes, net pay and stubs. In many companies this is called HR payroll work, because both teams use the same employee file.
In a small business, one payroll HR person, often the owner, may do all of it. That works, but a second set of eyes helps catch mistakes. For a full breakdown, see how the two teams split the work.
If you pay hourly employees every pay period, you also have to send tax deposits and file forms. A stub tool does not do that. Compare how a stub tool differs from a payroll system, and read a guide for your first hire.
Once you have your numbers, the tool does the heavy lifting. Here is how to enter an hourly worker. For the full field by field guide, see the full eight step walkthrough.
- Pick your state and filing status. Then choose the pay frequency and select Hourly.
- Enter your hourly rate and regular hours. Use the regular hours for the pay period. Leave auto calculation on, so the taxes are worked out for you.
- Add overtime as its own line. Put the overtime pay under Additions, so it shows up separately on the stub.
- Preview it for free. Compare gross pay, taxes and net pay with your own math from this guide. Fix anything that is off.
- Pay $6.99 and download. Use a debit card, credit card or PayPal on an encrypted page. The PDF arrives by email within minutes. There is no account and no subscription.
What it costs
- Preview: free
- One pay stub: $6.99, with any of seven templates
- Your first classic stub: free for new users
- Typos found later: email us within 24 hours and we fix them
Special cases
| Your situation | What to do |
|---|
| Part time hours that change | Use the real hours for each pay period. Do not copy the same hours every time. |
|---|
| Two or more pay rates | Put each rate on its own line, as in Example 3. |
|---|
| Unpaid breaks | Do not count them. Only paid hours go on the stub. |
|---|
| Paid time off | Show it as its own earnings line. |
|---|
| Tips | Add reported tips as a separate earnings line. |
|---|
| Paid in cash | Keep a ledger and bank records. See what to do when pay comes in cash. |
|---|
| Hourly contractor or freelancer | No tax is withheld, so tick the Contractor box. See how contractors and employees differ on paper. |
|---|
| Hourly gig work | Use your app statements for the figures. See a guide for app drivers and couriers. |
|---|
Mistakes to avoid
- Counting overtime at the normal rate. Overtime is rate times 1.5.
- Mixing up pay period and work week. Overtime follows the work week.
- Guessing the hours. Use real time records.
- Choosing the wrong state. Taxes and overtime rules change by state.
- Breaking the year to date chain. Each stub should add to the one before it.
- Skipping the preview. Always compare it with your own math.
Questions people ask
How do I create a pay stub from hourly pay?
Multiply the hourly rate by the regular hours, add overtime pay at time and a half for hours over 40 in a week, then subtract federal tax, state tax, Social Security, Medicare and any deductions. The result is net pay. Enter the figures in a pay stub tool, check the preview and download the PDF.
How do I calculate overtime on a pay stub?
Multiply your hourly rate by 1.5 to get the overtime rate, then multiply by your overtime hours. At $22 an hour, overtime is $33 an hour. Six overtime hours add $198. A few states, such as California and Nevada, also have daily overtime rules for some workers.
What should an hourly pay stub show?
It should show the employer and worker names, the pay period and pay date, the hourly rate, regular and overtime hours, gross pay, each tax and deduction, net pay and year to date totals. Many states require the hourly rate and hours on the stub.
How much tax comes out of hourly pay?
Social Security takes 6.2 percent and Medicare takes 1.45 percent. Federal income tax depends on your pay, filing status and W4. State income tax depends on where you work. For a single worker earning $22 an hour with six overtime hours in a week, about 16 percent of gross pay goes to federal tax, Social Security and Medicare.
How do I convert hourly pay to yearly pay?
Multiply your hourly rate by 2,080, which is 40 hours a week for 52 weeks. At $20 an hour, that is $41,600 a year before taxes. Part time workers should use their real weekly hours instead of 40.
Who handles hourly pay, payroll or HR?
Both. HR usually sets the hourly rate and approves changes, and payroll turns the hours into pay, taxes and stubs. In a small business, one payroll HR person may do both jobs.
Can I make a pay stub for a part time hourly worker?
Yes. Enter the real hourly rate and the real hours worked in the pay period. The tool works out the taxes from the pay you enter. Use only true figures.
How much does it cost to create an hourly pay stub online?
At Check Stub Generator, you can preview a stub free, and new users get their first classic stub free. After that, one stub costs $6.99 with no subscription. If you find a typo, email us within 24 hours and we fix it.
The bottom line
Hourly pay is simple once you follow the formulas. Multiply rate by hours, add overtime at time and a half, subtract taxes and deductions, and show running totals. If your numbers match the preview, you are done.
When you are ready, you can build yours, check every line and pay only when it matches your records.
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This article is general information, not tax, legal or financial advice. Overtime and payroll rules differ by state and change over time, so check with an accountant or your state labor department for your case.