How to create a pay stub with correct tax withholding

1. Click New document → Hourly or Salaried Pay Stub.
2. Enter employer info (auto-filled from your business profile).
3. Enter employee info (name, SSN last-4, filing status, dependents).
4. Add earnings (regular hours, overtime, bonuses, commission).
5. InvoDraft auto-calculates:

- Federal income tax (using the latest IRS withholding tables)

- Social Security (6.2 %)

- Medicare (1.45 % + 0.9 % surcharge over $200K)

- State income tax (all 50 states + DC)

- State disability / family leave where applicable (CA, NY, NJ, RI, HI, WA, MA)

1. Add YTD figures if needed.
2. Preview and Download.