1099 Pay Stub Guide: How to Create One for Contractors

Do you need to create professional pay stubs for 1099 contractor work—either for yourself or for someone you hire? You're in the right place.

Unlike traditional employees, independent contractors typically don't receive pay stubs automatically. That means the responsibility falls on the contractor or the hiring business to generate them. The good news? It's easier than you might think.

In this article, you'll learn exactly what a 1099 pay stub is, why it matters for both contractors and employers, and how to create one quickly and accurately.

Main Takeaways:

• Independent contractors must create their own pay stubs since businesses aren't legally required to provide them, unlike with W-2 employees.
• Pay stubs serve as crucial proof of income for loan applications, rental agreements, tax filing, and other financial verifications.
• Essential information includes contractor details, client information, pay period, gross earnings, deductions, and net pay.
• Online pay stub generators make it easy to create professional 1099 pay stubs in minutes with accurate calculations.
• Keep detailed records of all pay stubs to simplify quarterly tax payments and annual filing requirements.

What Is a 1099 Pay Stub?

A 1099 pay stub is simply a pay stub for an independent contractor. It documents a single payment (or pay period) for work done by a contractor, similar in format to an employee pay stub but generally without tax withholdings.

For contractors, it serves as official proof of income, useful for taxes, loan applications, and rental agreements. For employers or clients, it creates a clear record of payments and supports accurate bookkeeping.

Unlike a 1099-NEC form, which reports total annual income, a 1099 pay stub breaks down earnings for a specific pay period, showing the payment date and total amount paid.

What Does a Contractor's Pay Stub Look Like?

A contractor's pay stub is structured to clearly show how much was paid for a given period and the details behind that payment. The example below demonstrates the most common elements you'll find:

• Payer information – Business name, address, and contact details.
• Payee (contractor) information – Name, address, and sometimes the last four digits of the Social Security number or EIN.
• Pay period – Start and end dates for the work performed.
• Payment details – Service descriptions, rates, quantities, and totals.
• Gross pay – The total amount earned before any deductions.
• Deductions – Usually $0.00 for contractors unless there's backup withholding or other agreed non-tax deductions.
• Net pay – The actual amount received.
• Year-to-date (YTD) totals – Running totals for earnings, which help track income and confirm accuracy over the year.

When reviewing a contractor pay stub, it's important to understand the distinction between current period figures and YTD figures. Both are important for confirming that the amounts match your records.

State requirements vary—some states require pay stubs to be provided, while others do not. Contractors and businesses should confirm the rules in their state.

What's the Difference? 1099 Contractors vs. W-2 Employees

Whether you're working for yourself or hiring others, knowing the difference between 1099 contractors and W-2 employees is essential. Your worker classification determines how pay stubs are handled, how taxes are paid, and what records need to be kept.

W-2 Employees

• Pay stubs: Employers must provide a pay stub with each paycheck.
• Taxes: Employers withhold federal, state, and FICA taxes.
• Benefits: Often eligible for health insurance, retirement plans, and paid time off.
• Work structure: Employer controls schedule, location, and job requirements.

1099 Independent Contractors

• Pay stubs: Not legally required from the payer, though providing them improves transparency and record-keeping.
• Taxes: Contractors are paid the full agreed amount and handle all taxes themselves, including the 15.3% self-employment tax.
• Benefits: No employer-provided benefits; contractors arrange their own.
• Work structure: Contractors set their own schedule and may work for multiple clients.

Learn How to Hire a 1099 Employee the Right Way

Bringing on contractors? Make sure you understand the legal and tax requirements before you start. Our guide walks you through everything you need to know about hiring and paying 1099 workers.
Read the Guide

Why and When You Need a Pay Stub as an Independent Contractor

If you work as an independent contractor, you're responsible for documenting your own income. Unlike employees, you won't automatically receive a pay stub from a client, but there are many situations where having one is necessary or highly useful.

Proof of Income

Many lenders, landlords, and agencies require pay stubs to verify your earnings before approving housing, loans, or other services.

Tax Preparation

Maintaining pay stubs throughout the year makes it easier to calculate quarterly estimated taxes, track deductible expenses, and file your annual return.

Government Benefits and Programs

Certain income-based programs, such as healthcare subsidies or childcare assistance, require formal proof of earnings.

Loan and Credit Applications

Pay stubs can strengthen applications for mortgages, auto loans, personal loans, or lines of credit by showing consistent income.

Legal Documentation

Courts may request income verification for matters like child support, divorce proceedings, or other legal disclosures.

Create a Professional 1099 Form in Minutes

If you're paying contractors, you'll need to file a 1099. Skip the spreadsheets—use our easy online tool to generate accurate, compliant forms in just a few clicks.

Generate Form 1099

How to Create a 1099 Contractor Pay Stub with Paystubsnow

With Paystubsnow, you can create a compliant, polished 1099 pay stub in just a few minutes—no complicated payroll software or accounting expertise required.

Here's How To Do It

1. Enter Basic Setup Information Start by providing the essentials:

   • Email address where your pay stub will be delivered.
   • Employment type (the form uses "Employee," but for contractor stubs, think of "Company Information" as the payer/client and "Employee Information" as the contractor).
   • Payment type (Hourly or otherwise) and pay frequency (e.g., weekly, bi-weekly, monthly).
   • State for tax calculations, typically where the work was performed.
   • Number of pay stubs you'd like to generate in this order.

2. Complete Payer (Company) Information Enter the payer's legal business name, phone number, and full address. You can also upload a company logo for a polished, branded appearance.

3. Complete Payee (Contractor) Information Fill in the contractor's name, last four digits of their Social Security number, phone number, and full address. You'll also see fields for Marital Status, Exemptions/Allowances, and Direct Deposit.

   For most contractors, tax withholdings are not applied, so these tax lines can be left at $0.00 unless there's backup withholding or another agreed-upon arrangement.

4. Add Pay Period and Earnings Details Next, define the pay period and the work performed:

   • Set the Pay Period Number to reflect where you are in the calendar year, ensuring year-to-date totals remain accurate.
   • Add the start and end dates for the work and the payment date.
   • Under Earnings, enter amounts for Regular, Overtime, Bonus, Tips, or any other relevant categories. For contractors, the full project fee often goes under "Regular" or "Bonus," depending on your agreement.

   For Deductions, the form will list common tax withholdings like FICA and Federal Tax. Leave these at $0.00 for contractors unless required, and only add deductions for legitimate adjustments such as reimbursements or advance repayments.

   Paystubsnow will automatically calculate gross pay, total deductions, net pay, and year-to-date amounts based on your entries.

5. Review and Customize Your Pay Stub Once your details are in, preview the stub in any of the available templates (Templates #1–#7) and choose between Classic or New styles. Check that all names, dates, amounts, and payment details are correct. If you spot any errors, make edits before finalizing—or, if necessary, reset the form and start over.

6. Checkout, Download, and Share When everything looks right, accept the Terms of Use and Privacy Policy, then proceed to checkout. Your completed pay stub will be available for immediate download, and a copy will also be sent to your email.

   • If you're the contractor: Save it for your records or submit it as proof of income when needed.
   • If you're the payer: Send the PDF directly to your contractor for their records.

Create Professional Contractor Pay Stubs with Paystubsnow

You've seen how straightforward it can be to create accurate, professional pay stubs for independent contractors. Now it's just a matter of putting that knowledge into action.

With Paystubsnow, you can turn payment details into a polished, compliant pay stub in minutes. No complex payroll software. No guesswork. Just enter the key information, preview your document, and download instantly.

If you need a clear, credible record for taxes, loan applications, or any other income verification, there's no reason to wait.

Generate Your Pay Stub Now and make sure your records are as professional as your work.