Create a Customized Paystub With All the Correct Information for Your Business
A paystub, also commonly known as a payslip, is a document given to employees for services provided over a certain period. It summarizes the information of how much was earned and what deductions were made, leaving the employee with their total net pay for the period. There is certain information that needs to be entered into a paystub which includes the following:
- General Details: A payslip normally includes details about both the employee and employer. Information about the employee includes name, address, and social security number, while employer information includes company name and address.
- Gross Income: Gross income refers to the amount an employee earns before deductions such as income tax are taken off their salary. Although laws vary from one state to another, a paystub should generally include total hours worked, such as regular, overtime, and double time. A payslip should also include the pay rate of an employee.
- Deductions: Various deductions such as employee taxes, health insurance, life insurance, and contributions to retirement funds should be itemized on a payslip, and the employer should withhold these amounts.
- Net Income: Net income is the total amount after taxes and deductions have been subtracted from the employee’s gross income. This is the employee’s take-home pay and the total amount the employer pays the employee.
How Do Employees Benefit from Paystubs?
An employee can use their paystub as proof that their salary was received. The payslip provides details of the amount paid, so it serves as proof of income, allowing an employee to successfully apply for long-term financial agreements such as the following:
- A personal loan
- A home loan
- A rental lease
When completing their annual tax returns, employees can also refer to their paystubs for information needed to submit their returns. In addition, paystubs help employees clarify how their employers arrived at their net payment for the period. As a result, there is less likelihood of confusion and potential employee dissatisfaction.
Choose a Template to Suit Your Business
Paystubcreator is an online paystub generator that allows you to choose a modern template that suits your business. Templates are customized to meet your requirements, and samples are professional, modern, and adaptable. The following are some of the templates you can select:
- Horizontal blue
- Vertical blue
- Horizontal black
- Vertical black
How to Issue Pay Stubs if You Pay Employees With Direct Deposits
When an employer issues physical checks, a paper payslip is usually attached to the actual check. On the other hand, if a direct deposit is made into the employee’s bank account, the paystub will usually be in a digital form, such as an email.
Generating paystubs electronically has become popular, and this method is generally preferred by both employers and employees. Many employers ask how to get pay stubs from direct deposit to employees.
You can easily make electronic paystubs (e-stubs) online with all the correct information using a paystub generator like Paystubcreator. It is important, however, to ensure that your e-stubs comply with state laws and regulations.