Regardless of the size of your company, you stand to gain a lot by knowing how to create pay stubs for your employees. This essential business knowledge will give you an edge when it comes to managing your human resources and understanding the dynamics within your company.
Let’s see how to create pay stubs for your employees below.
Pay Stubs 101
A pay stub, also known as paycheck stub and payslip, is a document that accompanies a paycheck and breaks down how much an employee is paid. The pay stub includes pay details for a particular payment.
Most states have pay stub requirements. In the states that you are not legally obliged to provide pay stubs, you still have to keep track of work hours for each employee.
Pay stubs can be either physical or digital. Physical pay stubs are slips of paper typically attacked to each pay check. Digital pay stubs are often computer documents that accompany online payroll payments.
How to Create Pay Stubs
The easiest way to create pay stubs is to hire an accountant. If this is not an option, you will have to download a pay stub template. There are hundreds of free pay stub templates you can choose from to find the right one for your company.
You will then have to fill in the relevant information for each of your employees in the template.
If this sounds too complicated, worry not. There are numerous online pay stub makers that can drastically speed up the process. Check out www.paystubs.net for an easy and straightforward online pay stub maker.
Using such a generator, you can auto-fill several fields at once and customize the form to better suit the needs of your business.
Elements of a Pay Stub
But what goes into a pay stub? Let’s see the main elements below:
The first element in a pay stub is the name of the employee. In addition to that, the pay stub may include the pay period the pay stub covers, as well as the total hours, worked during that period.
Then you list the gross pay. This is what you are paying your employees before any deductions are made.
Below the gross pay, you then list all deductions. These typically start with tax deductions, which include federal, state, and local taxes.
Additional deductions include wage garnishments for outstanding debts, FICA contributions, insurance deductions, and retirement contributions.
Towards the end of the pay stub, you list the net pay. This represents the amount of money an employee receives after all the deductions. The net pay represents the take-home pay for each month.
Expanding Your Business Savvy
Now you know how to create pay stubs, you are better equipped to manage your human resources. If you seek to deepen your entrepreneurial knowledge, come on in for more in-depth articles. Our blog is dedicated to helping people obtain what they need.
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