Why self-employed people need a pay stub
Nobody runs payroll for you, so nobody hands you a stub. The people who decide on your application still think in paychecks, though, and a stub speaks their language.
Renting a home
Most landlords compare monthly income with the rent. A monthly stub gives them that one number instead of a pile of invoices.
Loans and mortgages
Lenders look for income that is regular and lasting. Stubs that agree with your tax returns and bank deposits make that easy to see.
Taxes
A record of each draw, kept through the year, makes estimated payments and your yearly return easier to get right.
Your own budget
Paying yourself a set amount on a set day shows what you can really spend once tax is put aside.
Making a self-employed pay stub, step by step
- Gather your records. Invoices, 1099 forms from clients, app statements and the bank deposits that match them.
- Decide what you pay yourself. Pick a draw amount and a schedule, weekly or monthly, that your business income can carry.
- Open the stub maker and tick Contractor / 1099 mode. The stub then shows your pay with no payroll tax withheld, which is how contractor pay works.
- Enter your business as the payer. Use your business or trade name and address, then your own name as the person paid.
- Enter the draw as the pay for the period. Add the period dates and the pay date, and check the year-to-date total.
- Download, then repeat each period. Keep the same amount, schedule and design so the stubs read as one steady record.
What goes on a 1099 pay stub
| Line | What to put there |
|---|---|
| Payer | Your business name and address, or your own name if you trade under it |
| Payee | Your name and address |
| Pay period and pay date | The dates the draw covers and the day you moved the money |
| Gross pay | The draw or the earnings for the period |
| Taxes withheld | None, in 1099 mode: you pay income tax and self-employment tax yourself |
| Net pay | The same as gross, since nothing is withheld |
| Year-to-date | Your draws so far this calendar year |
Prefer to show business costs too? A profit and loss statement is the better place for them; the stub shows what you paid yourself.
Owner draw or salary: which stub matches you?
- Sole proprietor or single-member LLC taxed as one: you take an owner draw. The stub shows the draw with no tax withheld.
- Owner of a corporation that runs payroll for you: you are paid a salary with withholding, so your stub looks like any employee's.
Pick the one that matches how money really moves from your business to you. If you are not sure how your business is taxed, your tax return shows it.
Self-employment tax in plain words
An employee and an employer each pay half of Social Security and Medicare. When you work for yourself you pay both halves, and that is self-employment tax: 15.3% in total, made up of 12.4% for Social Security and 2.9% for Medicare. It usually applies once your net earnings from self-employment reach $400 for the year. Source: IRS, Self-employment tax.
The rate is charged on 92.35% of your net earnings, not on all of them. You figure it on Schedule SE, and you can deduct one-half of it when you work out your adjusted gross income. Source: IRS Topic 554, Self-employment tax.
It comes on top of regular income tax, and its Social Security part stops at the same yearly wage base that applies to employees.
Estimated tax payments
With no employer withholding for you, the IRS expects you to pay during the year. Individuals, sole proprietors included, generally have to make estimated payments if they expect to owe $1,000 or more when they file, using Form 1040-ES. The year is split into four payment periods, each with its own due date. Source: IRS, Estimated taxes.
A simple habit: each time you pay yourself a draw, move a share into a separate tax account. Your stubs then show the draw, and the tax money is already set aside.
Proof of income for the self-employed: what to send
| Document | What it proves | Where to get it |
|---|---|---|
| Federal tax return with Schedule C | Profit after costs for a full year | Your copy, or a transcript from your IRS online account |
| 1099-NEC or 1099-K forms | What clients or platforms paid you | The clients and apps that paid you |
| Bank statements | That the money arrived, and how often | Your bank's app or website |
| Profit and loss statement | Income and costs so far this year | Your bookkeeping, or a simple spreadsheet |
| Self-employed pay stubs | What you pay yourself each period | The stub maker on this site |
For a mortgage, expect more: the CFPB's application packet list asks for signed federal tax returns for the last two years. Source: CFPB loan application packet list.
Keep it honest
Making a stub for your own self-employment income is ordinary record keeping. The figures must be what you really paid yourself, and they should agree with your bank deposits and tax returns. A stub that shows income you did not earn, or that dresses a draw up as a salary from an employer, misleads the reader and can be fraud.
What $3.49 includes
Federal, state and FICA taxes worked out, Current-year YTD totals, Regular and overtime pay lines, Every design at the base price, Your logo, Corrections and the PDF download. Optional add-ons: extra earnings & deduction lines $1.00/stub, tax & w-4 withholding edits $1.00/stub, time-off (pto) lines $1.00/stub, deposit slip $1.00/stub. All 4 together: $1.49 for 1 stub, $2.99 for 2, $0.99 each from 3.
FAQ
Can I make my own pay stub if I'm self-employed?
Yes. Plenty of freelancers do, as a running record of the draws they take. Enter real figures so each stub agrees with your bank deposits and your tax return.
What goes on a 1099 pay stub?
Your business as the payer, your name, the pay period and pay date, the draw or earnings, no tax withheld in 1099 mode, and your year-to-date total.
How do I show proof of income when I'm self-employed?
Send last year's tax return with Schedule C, your 1099 forms, recent bank statements and, if you keep one, a profit and loss statement. Stubs that match them make the picture easier to read.
How should I pay myself as a sole proprietor?
Usually with an owner draw: a set amount moved from the business account to your own on a regular schedule. Your stub then shows that draw.
Is self-employment tax separate from income tax?
Yes. Self-employment tax pays for Social Security and Medicare; regular income tax is charged on top of it.
Will the stub show taxes taken out?
Not in Contractor / 1099 mode, because nothing is withheld from contractor pay. You pay the tax yourself through estimated payments.
What does a self-employed pay stub cost?
$3.49 for one stub, and $2.99 per stub from three stubs up. No subscription.