It’s important to give your workers proof of what they’ve earned. We discuss how to create pay stubs for your employees.
Having easy-to-read pay stubs for your employees is a must.
While you’re not federally required to provide pay stubs, simply providing a cheque to your workers won’t give them all of the information that they need for that pay period. Most people prefer to keep track of taxes, hours worked, and ensure that they’re getting what they deserve.
You need this information to apply for loans, to give your children financial aid, and to do things like re-finance your home. It’s a simple thing to do for your employees to ensure that they can properly keep track of their finances and it’ll help you because you won’t have to answer any questions about this info.
In this post, we’re going to tell you how to create pay stubs for your employees. You need to know the essential information to include and how to phrase and arrange it so that your employees can easily read it and get what they need from it. Let’s get started.
How to Create Pay Stubs for Your Employees
When creating pay stubs, you’ll be crunching some numbers. If you’re going it alone, you should have an Excel spreadsheet handy, however, there are loads of great tools online to help you through this process.
Paystubcreator.net, paystubsonline.net, and even Shopify will have great templates that make it much easier to calculate and display things than doing it on your own. Let’s call this the first step. From here, every pay stub needs the same general things to satisfy an employee.
The only important layout rule to follow when creating a pay stub is that it should be easy to read.
Typically, you would have your company name at the top with your address and something indicating the nature of the document. Underneath that, you would have the employee name, SSN, pay period, and pay date.
The gross earnings and deductions should take up most of the pay stub. On the left half, show how much your employee has earned for that period. If they’re on salary, this number will be the same for every pay period.
If they’re on an hourly wage, you would display their wage, the number of hours worked, and then a calculation of how much they’ve made in that period.
On the right side, you will showcase the statutory deductions that you make each pay period. This includes things like federal and state tax, social security, and medicare.
Some employees may opt-in to other work-related deductions like a 401K, retirement pension, or insurance. These will be displayed alongside the mandatory deductions.
At the bottom, display the gross earnings, the deduction total, and net pay. Net pay is calculated by subtracting the total of the deductions from their gross earnings.
You will also display the year-to-date information at the bottom so that they can see how much they’ve earned in total for the year, as well as, how much has been deducted. This info is important for tax season.
Make Your Pay Stubs Today
Now that you know how to create pay stubs, you can begin giving your employees the information that they need and deserve. Check out one of the many online templates to quickly and easily make attractive and informative pay stubs for your employees every pay period. They’ll make everyone’s lives easier.