One of the most overwhelming tasks of starting a business or hiring a freelance worker is the pain of filling out a pay stub.
You might feel as if one wrong detail will lead to the person not being paid correctly or that your pay stub is too plain.
However, it doesn’t have to be that way. Generating a pay stub shouldn’t be difficult at all if you use the proper technique.
Be sure to read below on how to generate a paycheck stub for your workers. Follow every single step and you will have a pay stub that you can use for the foreseeable future!
1. Set Up a Payroll Service
First things first, you’ll need to set up a payroll service in order to be able to pay yourself and your employees.
You can shop around by visiting a few local banks and having them outline their options for you. Choose the one that you feel is the best fit for your small business and what you need.
For example, perhaps your company will be hiring a lot of freelance workers to do things like build your website, create blog posts, or make ads for you. If so, you’ll want to find a payroll service that specializes in that.
If not, you might line yourself up with a payroll service that specializes in something your business doesn’t need.
This process should be as easy as discussing what your business does with the payroll service provider and having them tell you how they can accommodate it.
From there, you’ll be able to add your in-house employees to the service and set your payment rates, withholding information, and all other necessary information.
2. Find an Online Pay Stub Generator
Now that you’ve set yourself up with the right payroll service, all you’ll need is a pay stub to provide your employees each payday.
You’ll want to use the same template each time so that it takes as little time as possible to construct.
One of the best options is to find a check stub generator online. They make the entire process easier with a “fill in the blank” way of building your pay stub.
Be cautious when selecting them, however. Make sure you’re using a legitimate service before plugging in private information about your company and employees.
Start by checking the online reviews of the check stub generator you’re considering. If the reviews are overly positive, then you can proceed with that specific service.
3. Fill Out Company Information
After you choose the paycheck stub generator that you want to use, you’ll start by filling out information about your company.
This contains using your company name, address, primary phone number, and company employer identification number.
Also, be sure to have a high-resolution file for your company logo that you can input. Using one will make your pay stub look cleaner and seem more legitimate.
4. Employee Information
Next up, you’re going to be filling out vital information about the employee. This includes things like their name, address, phone number, email, and the last four digits of their SSN.
However, in this stage, you will also want to have a few things ready for when you fill out the salary and payment information. See below for the two things you need to factor in about your employee’s payment.
Determine Employee’s Gross Pay
If your employees get paid salaries, then this will be easy to do. Simply divide their total salary by the number of times you’ll pay them this year.
For example, if your employee makes a salary of $40,000 annually and there are going to be 26 paydays that year, they would make $1,538 per pay period.
If your employees are paid hourly, then you just multiply their hourly rate by the number of hours they’ve worked during that pay period.
So, in that example, if they make $20 per hour and worked 40 hours that week, then their payment for that week would be $800.
You’ll also want to factor in things like paid time off, overtime pay, and any commissions or bonuses that they qualified for.
Input Deductions
Showing your employee all the proper deductions on their pay stub is just as important as actually taking them out. You want your staff to remain informed of their deductions for tax reasons, benefits, etc.
Be sure to know all the necessary taxes within your state and city regulations. One of the easiest ways for you (the employer) to find this is by checking the IRS’s tax tables.
You’ll also want to take out social security and medicare taxes. To calculate social security simply multiply the worker’s gross pay by .062 (6.2 percent). To calculate medicare, multiply their gross pay by .0145 (1.45 percent).
Remember, you’re required by federal law to match those funds for your employees.
Next, you need to factor in the services your company offers its workers such as a 401(k) plan, insurance plan, and retirement pension as well.
After everything is taken out, your employee’s net pay will be what remains. After you input the salary information, your pay stub generator will allow you to review the stub you’ve made before in order to confirm it.
Generate a Paycheck Stub for Your Staff Today!
Now’s the time to generate a paycheck stub and get your startup in a good position to succeed.
The more information that you provide on your pay stubs, the happier that your employees will remain.
Be sure to browse our website for more articles on business finances, as well as many other helpful tips!
