Employee
Did you know that in ancient Egypt, employees were paid in beer and other goods according to ancient “paystubs”? This is because there was no money in the form of coinage.
Salary statements, also known as pay stubs, help employees record their earnings. Pay stubs are often used to get rental agreements for large purchases and take out loans, mortgage loans, or credit cards as proof of earnings. As a small-business owner, how do you create employee pay stubs?
Do you want to learn how to make a pay stub? Read on for advice on creating a pay stub that meets your requirements.
How To Make a Pay Stub and What Is It?
As previously stated, a paystub is also identified as a payslip. Pay stubs show the wages earned over a specific period, as well as:
- Employee contributions
- Personal deductions
- Taxes payable
- Other relevant details
These records explain how you calculated employees’ wages. Pay stubs are typically attached to paychecks. However, you could issue digital pay stubs if you pay your employees via direct deposit.
Paystubs are relatively simple to create once you are familiar with the needed elements. Even so, if you believe you require assistance generating a pay stub for your company, you can get expert help.
One effective way to streamline this process is by using paystub templates, which are pre-designed documents that include all the necessary fields and formatting for a standard paystub. These templates can save you time and effort, ensuring accuracy and compliance with relevant laws and regulations.
How do I create a pay stub, and what information do I include? The following are the main features to be included on a paystub:
- Your company information
- Your employee information
- The pay period (dates)
- Gross wages which must include savings and exemptions
- Employee deductions (tax and others)
- Net take-home pay
If employees work hourly or state laws require the company to record work details, the paystub is needed to track weekly hours worked. Depending on state laws and company policy, extra hours and bonuses are also considered.
Why Is a Paystub Important?
Paystubs or payslips serve as a paper trail. Therefore, it is imperative to maintain proper documentation, especially when it comes to managing money.
A pay stub is an important statement for employees for various reasons. Payslips or paystubs, for example:
- Serve as proof of stable income if they wish to obtain credit or a loan of any kind
- Serve as proof of previous employment if they change jobs
- Proof of income in the form of pay stubs is required by landlords, like for loans
- Detecting errors in your wages by checking your paycheck stubs
- Helping to complete your tax forms correctly
- A pay stub will help calculate your compensation claim in the event you are injured
Overall, a pay stub is a very important piece of paper for both the employer and the worker. Therefore, keeping your paystubs, all in all, is a good practice.
Creating a Pay Stub Is Easy As Pie!
A pay stub is an important document for both the employee and the employer. A record of all the earnings ensures that the company is consistent and has no differences. Also, it builds trust between the company and the worker because the worker knows where all of their hard-earned money has gone.
