Knowing how to make pay stubs will improve your record-keeping and save you time. Many business owners think it’s difficult to learn how to make pay stubs for employees or that it requires a lot of their time. These same people miss out on a great way to keep track of their finances.
In this article, we discuss how easy it is to use a pay stubs generator. We also will tell you why it’s important. Continue reading to find out how a pay stubs maker can benefit your company.
What Are Pay Stubs?
Pay stubs for employees explain the calculations behind their paychecks. These pay stubs often accompany a paycheck. While not required by the Fair Labor Standards Act, using a pay stubs generator is a great way to track employee wages and hours.
Why Do I Need to Know How to Make Pay Stubs?
As we said, pay stubs are not required but knowing how to make pay stubs for employees will come in handy, especially when they need proof of income. Since the employee can retain their own pay stubs, it saves you time from having to provide them. This is common when an employee is buying a house or renting an apartment.
Plus, it also makes filing your business’ tax returns easier. Pay stubs generators will provide you with pay stubs that prove what each employee was paid and how much of their pay went to taxes.
Using a Pay Stubs Maker
Now that you know the benefits of a pay stubs maker, you’re likely wondering how to make pay stubs. One option is to use a paystub maker online like Paystub Creator. Companies like this offer samples as well as a pay stubs guide to help you through the process; they make the process as easy as possible.
Make Your Calculations
Start by making all the necessary calculations for your pay stubs generator. This includes:
- Pay period
- Gross pay
- Year-to-date income
- Individual tax withholdings (federal tax, state tax, Medicare, and Social Security tax)
- Retirement withholdings
- Total deductions (including insurance premiums and other benefits)
- Net income
Enter Company Information
The next step with your pay stubs maker is to insert your company information. This will display on the pay stub, so make sure it’s correct. Some pay stubs generators have the option to upload a company logo.
Enter Employee Information
Finally, gather all of the remaining information pertaining to your employee. This includes your calculations and their contact information. After you have this information, you’re ready to submit your work to your pay stubs maker.
Now You Know How to Make Pay Stubs
Now that you know how to make pay stubs, you’re ready to get started. The hardest part of this process is gathering the information. The rest of the work is done for you by the pay stubs maker.
For more tips and guides for your business, visit our entrepreneur section.