If you have anyone who works for you, having the ability to create a paystub is crucial. It may seem obvious but having a paper trail for employee compensation can help avoid a lot of headaches in the future.
Look no further, this is the essential guide on how to create pay stubs.
Proving You Are A Person
Everyone needs a pay stub to prove their employment. This may be no issue for someone who works for a big corporation. If you work for a small business or a startup, it can be significantly more difficult to get your hands on a valid pay stub.
Paystub creation can be intimidating for any small business owner. Knowing what should and shouldn’t be done changes depending on where you are and what sort of business you are running. Being able to create an accurate paystub makes a world of difference for those who work for you.
Know Your Forms
Are you an employer that pays a salary? What about someone who brings in contracted workers? Are you your own boss but you still need to prove that you have an income? Those will be three different forms you will need to create and file.
Telling what form is what can be challenging, especially since the IRS doesn’t make it easy to learn how to differentiate between them. The rule of thumb is that, if you pay them directly, they get a W2. If you are paying yourself, or you are hiring someone for a singular project, you are creating a 1099 form.
Seek Out Existent Work
Having an example comes in handy when trying to create any item or document. If you know what something should look like, you are one step closer to creating a version for yourself. Several variations are circulating the internet, however, so make sure that you are selecting one from a trusted source and creating it insecure software.
When looking for secure software consider working with a pay stubs maker. These programs are designed to alleviate the burden of constructing a paystub outright. Just plug in your information and send out an accurate pay stub.
Keep Your Numbers Straight
To create a paystub there is a lot of information you must know. You will need to know your employer number and an employee’s past and current income. This is in addition to the amount that they have paid in taxes or any other income deductions.
The list of additional line items that can be added to pay stubs varies based on the field that you are in. If your employees get tips, then that should be listed. If you give out a seasonal bonus, that should also be added.
If any of the math on a paystub comes up incorrect, you as an employer may find yourself in legal hot water. If you are an independent contractor, either under or over representing your income one your paystubs could spell disaster when tax season hits. As intimidating as this all sounds, there is hope.
How to Create A Pay Stub
When trying to learn how to create a pay stub it is important to know what you need. Always be open to referencing existing work, and feel free to use a designated pay stub software.
Remember, accurate and effective paystubs don’t have to be hard to create you can always use a pay stubs maker to get it right.