Article Summury
Your business is doing great and you were able to hire an employee after what seems like decades. They do a great job and you feel like you have a great asset in this employee.
In fact, many people in America are employees of businesses like yours. Recent surveys from 2006 show that about 60 million people in the United States worked for a small business at that time.
After all the excellent work this person has done, they need to get paid, right? You can’t write them a personal check and expect everything to wash out when you do the accounting.
Fear not! We have created a quick and dirty guide explaining how to make a paystub for you or your employees. Keep reading to learn how!
Are Check Stubs Necessary?
The short answer is no, you are not required by law to provide check stubs to your employees.
Yet, you and your employees may need a check stub or two for other things. Applications for things like rental housing, credit cards, home loans, and others all need proof of income via a check stub.
If you do not pay stubs to your employees, they may need you to fill out paperwork for income verification. In the long run, you save yourself a ton of time (and thus money) by giving your employees check stubs that they can refer to at will.
How to Make a Paystub Yourself
1. How Much Is Your Employee’s Gross Pay
For salaried employees, all you need to do is divide the annual salary amount by the number of days in the pay period. If you pay weekly, divide by 52; for pay periods that are 2 weeks long, divide by 26 etc.
If your employees are hourly, that is a bit trickier. Using a time tracking software will make it easy to keep track of how many hours each employee worked.
Be sure to pay overtime to employees who are non-exempt. Often, it is not necessary to pay overtime to salaried employees.
2. What About Deductions?
There are many deductions taken from an employees gross pay. Be sure to include these withholding amounts on the check stub.
Examples of common deductions include federal taxes, state and local taxes, medical insurance, and court-ordered payments.
3. Figure out the Net Pay
This is the easy part. Once you know the gross amount and the number of deductions being withheld, you can calculate the net pay. The net amount is the number you will write on the check and hand to your employee.
Trust the Professionals
There are companies who Create check stubs for other companies. Using a service like this is great if you aren’t confident making stubs on your own.
Because these companies focus their business on making perfect check stubs for other companies, you can rest assured that your stubs will look professional and accurate.
Show Me the Money!
If you feel confident trying to make a paystub on your own, great! If not, there are other ways to get them printed for you. No matter which way you choose to do it, your employees will appreciate it.
We have a ton of great information in a wide range of topics like marketing, finance, education, and technology. If you have questions or a thirst for knowledge, we have the blogs to quench it!
If you are looking for more helpful and frugal articles like this, you should check out our financial blog section today!
