Pay Stub Requirements Texas: What Employers Need to Know

Texas Pay Stub Requirements

Texas follows federal guidelines for pay stubs under the Fair Labor Standards Act (FLSA). While Texas has no state income tax, employers still have documentation requirements.

What Texas Requires

Under the Texas Payday Law, employers must provide:

1. Earnings statement each pay period
2. Gross wages
3. Deductions made from pay
4. Net wages
5. Pay period covered

No State Income Tax Advantage

Texas is one of 9 states with no state income tax, which means:

• No state income tax line on pay stubs
• Employees keep more of their gross pay
• Simpler payroll calculations
• Still subject to federal income tax, Social Security, and Medicare

Federal Requirements Apply

Texas employers must still comply with FLSA:

• Maintain accurate records of hours worked
• Pay at least federal minimum wage ($7.25/hour)
• Pay overtime (1.5x) for hours over 40/week
• Keep payroll records for at least 3 years

Best Practices for Texas Employers

Even though Texas requirements are minimal, best practices include:

• Providing detailed, itemized pay stubs
• Including all earnings categories (regular, overtime, bonuses)
• Listing all deductions clearly
• Showing YTD totals
• Including employer and employee information

Texas-Specific Payroll Considerations

• No state income tax withholding required
• Texas Workforce Commission oversees wage claims
• Payday requirements — Salaried employees paid monthly, hourly at least bi-monthly
• Final paycheck — Due within 6 calendar days of termination (involuntary) or next regular payday (voluntary)