Despite most banking going the digital route these days, pay stubs remain an essential part of everyday life.
Your employees need their pay stubs for everything from proving employment to calculating their taxes. Having a reputable pay stub in hand can make all the difference when it comes to renting an apartment or even getting a loan.
Because pay stubs are still so important, it’s essential that you’re able to provide your employees with them even if you pay them via direct deposit.
If you need to start creating pay stubs for your employees but aren’t sure where to start, we can help.
Here’s everything you need to know about generating a legitimate employee pay stub.
Gather Essential Information
Before you can start creating pay stubs, you need to make sure you have all the information that those pay stubs should include first.
You probably already have records on all your employees. That said, you may still want to consider gathering their information that needs to go on a pay stub and logging that into a separate file.
Your employee pay stubs will need to include your employee’s full name and their social security number. They will also need to have their pay rate and the income period covered by that particular pay stub.
Once you’ve gathered all your employee information, it’s time to get down to business.
Because pay stubs are a record of your employee’s finances, you need to make sure that the numbers on them are exact down to the last penny.
Start by calculating your employee’s gross income, which is what they earned before any deductions. After you have their overall income, you’ll need to start sorting out any relevant deductions.
Deductions can include money put towards taxes, healthcare, or other benefits.
Finally, after you take all the deductions out of your employee’s gross pay, you’re left with the net earnings. This is the amount your employees get to pocket at the end of the day.
All this information is vital in tracking finances. Because of that, you need to make sure that it is all recorded on your employee’s pay stubs. Only including net or gross income will not be enough to track where the money ends up.
Put It All Together
After you have all the information you need to fill out your employees’ pay stubs, you’ll need to create the actual pay stubs.
While you can create pay stubs yourself using any word processor, you’ll be much better off using a paystubs generator.
With a paystub generator, all you need to do is input your employee’s information, and let the program take care of the rest.
Some pay stub generators will even help you keep tabs of all your employee’s information. Which, will make creating future pay stubs a breeze.
Triple Check It
Finally, once you’ve finished creating your employee pay stubs, you should take the time to proofread everything.
Pay stubs are sensitive documents, and something as simple as a single typo can spell big trouble if you don’t catch it in time.
Before printing off or sending out your employee pay stubs, go through them and recheck all the numbers and information. Remember, there’s no such thing as being too careful!
Generating an Employee Pay Stub
Pay stubs are essential in helping your employees keep track of their finances and build a life outside of the office.
Now that you know how to generate an employee pay stub, it’s time to get to work!
Are you looking for more advice, tips, or tricks on handling employees or managing your small business? We can help!
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