Did you know that, according to the Albany Business Review, there are over 30 million businesses in the US? Additionally, there are over 7 million establishments where the business has at least one paid employee.
If you have paid employees, then you need to create a payroll stub for each one. In addition to helping you keep track of your accounting, this will help you follow regulations that require you to inform your employees of the money they’ve made.
Alternatively businesses can also look for payroll management software where all payroll-related information is available within few clicks.
However, you might not be sure where to get started when creating payroll pay stubs. If you haven’t done it before, you might be stressed about this.
That’s why we’ve put together this article. In it, we’ll cover the steps you have to take to create payroll stubs.
Finally, you can pay your employees, keep a record, and run your business even more smoothly. Read on to learn more.
Use an Online Payroll Stub Generator
The first thing you need to do is use an online payroll stub generator. There are many of these available, and sometimes you can even create a payroll check stub for free. However, depending on your industry, you may be better off using a paid service.
To choose the right paystub maker for your business, think about the industry and legal requirements, as well as any deductions you might have to include.
Know and Understand What You Need to Include
Once you’ve decided on the payroll check stub software you want to use, you need to make sure that you know and understand what you need to include in terms of payroll information. This can vary from industry to industry, but usually, this includes:
- Pay period (dates during which the employee worked)
- Hours worked (the exact number of hours)
- Taxes that are required (local, state, federal, etc.)
- Deductions (e.g., healthcare costs or 401K)
You’ll also need to include your employee’s information. This includes their name, date of birth, and social security number. To make sure you include all the right information, it can help to look at a payroll check stub example or speak with your accountant.
Make the Right Calculations
Next, you need to make the right calculations and include them on the pay stub. The first of these is the gross pay, which is the amount your employee gets before deductions or taxes are taken out of that amount. This includes hourly wages and any other payments.
Other payments, such as wage garnishments, commissions, and tips, should be put on separate lines.
Once you’ve added all these payments to the payroll stub, you’ll also want to calculate taxable and non-taxable deductions.
Taxable ones include travel expenses and uniform fees, while non-taxable ones include 401K contributions, health insurance, and life insurance.
After filling out this information, you’re ready to print off your payroll stub and give it to your employee.
Need More Information?
Now that you’ve learned about how to create a payroll stub, you might need additional information. Maybe you want to learn about how to determine which non-taxable deductions you can include. Maybe you want help creating other types of forms for your business.
Whatever information you need, you can find it in our blog. Simply go to the Business Products & Services section, where you can learn everything you need to about business forms and running your business more smoothly.