Take the Guesswork Out of Creating a Pay Stub Online
A pay stub is a document from the employer that breaks down an employee’s pay for a specific pay period. It shows how much the employee worked, how much he was paid for it and breaks down all the deductions that were withheld for taxes and other contributions. The employee should get one for every pay period.
There are no set rules for pay stubs. Most of the states that require them, don’t require printed ones. States like Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota or Tennessee don’t even require them at all. What makes something qualify as a “pay stub” is not the format or a specific template used, but rather the information that goes into it.
What Goes Into a Pay Stub?
What information is required in a pay stub? Some states require more or less info when they require pay stubs. But pay stubs generally contain:
- Employer’s company details
- Employee’s details (name, address, SSN)
- Pay period
- Payment date
- Employee’s gross payment details for that period
- Breakdown of all current and year-to-date gross payments and deductions and what they are for, and
- how much of the salary the employee actually received after deductions.
Depending on the industry, employers may add some additional line items like tips for restaurants or commissions for sales
Who Needs Pay Stubs?
Employers need to make pay stubs because some states require them to file and issue pay stubs.
For employees, the most important function of pay stubs is record keeping. Many institutions and services require pay stubs as proof of income even if employers are not required to provide them. Some enterprises require pay stubs as proof of income when you’re applying for a loan or renting a place. Additionally, pay stub is a good proof of employment.
Why Do I Need a Pay Stub?
Pay stubs show an employee’s income, tax and other contributions. As such, it’s useful for someone who is filing his or her tax returns. Also, because of the information contained the pay stubs, the details of the employer and the person’s salary, it makes an excellent proof of employment and of income. This makes it useful for people who are applying for loans or credit, wanting to rent or lease a property, those who are applying for visas and, in some instances, those who are applying for new jobs and want to get a higher salary.
Do I Need a Pay Stub If I’m Self-employed?
Yes, as a self-employed person, you will still find pay stub records extremely useful. For example, as an owner of a single-member LLC it’s important to keep track of all payments made out to your personal bank account from the LLC. This helps to create some separation between your personal finances and that of your business entity.
Also, even if you are self-employed, many banks and institutions will still require pay stubs as proof of income and stable employment whenever you apply for loans or other services.
How Do I Create Pay Stubs Online?
While many employers may use services of payroll companies and hire accountants to create pay stubs for their employees, it is possible to do this online for a fraction of the cost. Our formpros.com pay stub generator is an ideal place to start creating your check stubs online.
To start, you’ll need some basic contact information for both the employer and the employee. Then our intuitive form will ask you some simple question about employee’s salary as well as current pay date and pay period. If you have chosen our advanced template you will be able to enter additional earned income such as overtime, tips, holiday and sick pay.
The entire process of creating a pays stub online will take you just a few minutes. Our intuitive form will even help you auto-calculate amounts that should be withheld for Federal and State Income Taxes, FICA Medicare and Social Security Taxes, as well as all Gross, Net and Year-to-date balances for the current pay period. Rest assured that your information is kept private and secure.
What Are Some Common Mistakes When Creating Pay Stubs?
- Supplying incomplete or inaccurate information. Many people make the mistake of taking pay stubs for granted. As such, a lot of them end up not putting the correct or complete information on the stub: they forget payment dates or pay periods, do not include full contact details for both the Employer or the Employee. Doing so will cause trouble when computing taxes later on.
- Mistake in the computations. This is a tricky one because there is actually quite a bit of computation that goes into making a pay stub. For example, incorrectly stating total hours worked during a pay period can result in a mistake of the year-to-date balances. Many users often put 40 hours worked on a bi-weekly pay stub while they actually meant to put down 80 hours. For this reason it’s always better to use an automated pay stub generator. There is a lot less likelihood that there will be a mistake in the computation.
- Throwing it away. Some people don’t pay any mind to their pay stubs and throw it away without so much as a quick read through. As much as possible, try to keep you pay stubs for at least until the end of the tax year. These will help you verify if your employee has been making the correct remittances on your behalf. Also, you may need to show your pay stubs when you apply for a loan or a try to rent a new apartment.
Why Use Form Pros Pay Stub Generator?
Our pay stub generator is a fast and easy way to create pay stubs online. The process is fully automated and user friendly. All calculations of deductions and income tax withholdings are based current tax laws and requirements, which we keep up to date with every new tax year.Our intuitive pay stub generator lets you instantly and efficiently create paystub records for a fraction of the cost your would normally pay an accountant or a payroll company.